07 September 2008

Desalination Technology

Desalination plants are famous for two things: turning saltwater into fresh water and using a lot of energy. This invention takes advantage of the high-pressure necessary to force salt water through filters by recovering energy from that pressure, i.e.,

The PX Pressure Exchanger® is a rotary-type energy recovery device with only one moving part that recovers energy from the waste stream of seawater reverse osmosis systems at up to 98% efficiency... PX technology dramatically reduces costs associated with the energy intensive desalination process by up to 60%... It is also the most widely used ERD today with installations in over 30 countries world-wide.
Although their website does not mention an installation in Israel, I am guessing that the Israelis are using similar (or better?) technology to desalinate water at a cost of $0.50/m^3 ($620/AF). I could be wrong.

Bottom Line: Technology is making desalination cheaper, but it will never be as cheap as reallocating water in markets. When farmers are paying $17/AF for water that cities are willing to buy for over $200/AF, you know there's a trading opportunity.

hattip to DPG

2 comments:

Anonymous said...

For several years the Israelis have been quoting a questionable price for producing desalinated water at the Ashkelon plant. Saul Arlosoroff, Director, and Chairman of the Finance/Economic Committee, Mekorot, wrote an email in early 2007 that said "The Ashkelon plant produces water for 52-55 USC/C.M (ex plant)"

They say they are going to duplicate these numbers for their new plant at Hedera, but with the cost of energy I don't see how they can do this. Who is going to sell them the gas and at what price and what are the terms of financing for this plant?

Anonymous said...

Correct about trading opportunity where disparity in prices exists; out of curiosity, how many farmers are really only paying only $17 an acre foot? Not many I think. There are some good deals out there, like for example PVID that just gravity-feeds off the Colorado and basically charges a ridiculously low flat rate to its farmers, but a lot of other farmers are paying a lot more.

I'm just asking because I'm not totally up to speed.

The numbers I hear on desal water are like $800 or $900 an acre foot. Works for urban delivery but not ag, obviously. The other thing about desal is that the enviro opposition to it is the most rabid of any advocacy they undertake. In the hierarchy of enviro values, the ocean totally trumps inland areas, and desal impacts the ocean.

I'm all for trading, as you know. When urbs and enviros say the cost of desal is prohibitive in the context of the pricing on existing ag supplies, however, I say that's because you guys (urbs, enviros) came to the table after all the easy water was developed, and that's not ag's fault. (As you know we didn't recognize environmental values in water use until within the last 40 years or so, and it's also really only been within that time that the state has really urbanized in a big way.).

So if you guys (urbs, enviros) want some water to enable your new arrival upon the scene, you need to either effect the voluntary retirement of ag water entitlements (i.e., transfers, which Zetland advocates) or build new supply - take your pick, reservoirs, desal, whatever has the right combination of pricing and minimized adverse impacts from your perspective.

What I don't like to see is the old "ag doesn't deserve water at $[x] per acre foot, so why desal when it's so much more expensive" and it's implementing cousins, non-compensating legislation like the ESA and water "efficiency" laws passed to allow urban water agencies to horn in to the existing pie.