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Selection of Projects for Assessment
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10.3.3. Selection of Projects for Assessment
Based on the assessments reviewed and our team’s site visits, the following projects have been selected for assessment.
Montoring Equipment – Estimated cost $182,000 ($140,000 + 30%) (as per COWI program – WWT-14 + 30%).
Aeration Tanks – upgrade, improvement of treatment efficiency and install energy efficient blowers. Estimated cost $12.928 million ($9.945 million + 30%) (based on summation of cost estimates presented in three studies identified).
Secondary Clarifiers, Line 1, Phase 1. Estimated cost $7.24 million ($5.57 million + 30%) (as 9.1% of COWI program, percentage applied to KVK-1).
New Sludge Dewatering Facility (Mechanical Dewatering). Estimated Cost - $8.83 million (KVK-8 + 30%).
Investment #1: Monitoring Equipment
Plant officials have indicated that this project will be their top priority. It is felt that if they can improve their monitoring of treatment processes that they can reduce discharges of suspended solids, all forms of nitrogen and phosphorous compounds. Such reductions would translate into reduced energy consumption. Staff indicated that if implemented, monitoring equipment would result in a 10 to 40 per cent reduction in the identified parameters, as well as a 5 to 8 percent reduction in energy consumption. Based on cost estimates presented in COWI study identified, the estimated cost for this project is $182,000.
Based on estimates presented above, the following assumptions have been made:
- Projected (conservative) 15% reduction of pollution discharges in Dnieper River of the following parameters:
- Suspended Solids;
- Ammonium nitrogen;
- Nitrates;
- Nitrites; and
- Phosphates.
- Improved monitoring will result in 5% reduction in aeration tank power consumption.
- There would be a 5% cost savings on “Direct Material Costs” and 5% on “Maintenance-General.”
It is assumed that the project will be implemented in 2004, and the one-time cost will be funded through the “overall” operation of KVK.
Based on these assumptions, the BWTP will continue to operate at a loss - $5.8 million over the timeframe – however, its net revenue would have improved by 45% (and $4.7 million lower operating loss).
Though conservative, the volume of monopollutant is anticipated to drop by approximately 32,000 tonnes. This would translate into reduction in environmental damages of $17.4 million (a 4% improvement).
Total energy consumption is estimated to drop by almost 64 million kWh (a 3% reduction), which translates into savings of $2.15 million over the 10-year timeframe – almost 12 times the estimated project cost. In addition, this drop in power consumption translates into a reduction of 32,742 tonnes of CO2 from natural gas or 54,623 tonnes of CO2 from coal.
Table
10.3.3.1. Project: Monitoring Equipment - BWTP – 2005-2014
Dollars in 2001 constant USD
|
Economic Indicator |
Estimated Value |
|
|
Estimate |
Difference/Reduction compared to Status Quo |
|
|
Financial Position - Net Revenue (Loss) - Net Present Value (in 2005) |
($5.83 million) ($5.30 million) |
$4.72 million (+44.8% gain) $4.29 million |
|
Economic Damages to the Environment - Tonnage of Monopollutant - Total Value - Net Present Value |
731,241 tonnes $398.2 million $362.0 million |
32,000 tonnes (4.2% reduction) $17.4 million $15.8 million |
|
Energy Consumption - Total Energy Consumption - Total Value - Net Present Value |
1,980.5 million kWh $66.6 million $60.6 million |
63.9 million kWh (3.1% reduction) $2.15 million $1.95 million |
|
Total Tonnage of CO2 - Production from Natural Gas - Production from Coal |
1,014,991 tonnes 1,693,302 tonnes |
32,742 tonnes 54,623 tonnes |
Investment #2: Aeration Tanks
Based on the summation of cost estimates presented in three studies identified, the estimated cost for this project is $12.928 million. This is on par with the estimate presented in the Phase 1 evaluation for “reconstruction of the airing system.”
Based on estimates presented above, the following assumptions have been made:
- Projected reduction of pollution discharges in Dnieper River (conservatively estimated at):
- Ammonium nitrogen – by 105 tonnes per year;
- Nitrates – by 2,978 tonnes per year;
- Nitrites – by 141 tonnes per year;
- Phosphates – by 172 tonnes per year.
- New blowers will save 20% energy cost (therefore, 32% reduction in aeration tank power consumption)
- There would be a 10% cost savings on “Direct Material Costs” and 5% on “Maintenance-General.”
It is assumed that the project will be implemented in 2004, and the one-time cost will be funded through the “overall” operation of KVK.
Based on these assumptions, the BWTP will still be operating at a loss – $2.44 million over the timeframe – however, its net revenue would have improved by 77% (and $8.1 million lower operating loss).
Though conservative, the volume of monopollutant is anticipated to drop by 33,960 tonnes. This would translate into reduction in environmental damages of $18.5 million (a 4.4% improvement).
Total energy consumption is estimated to drop by 409 million kWh (a 20% reduction), which translates into savings of $13.6 million over the 10-year timeframe – almost equal to the estimated project cost. In addition, this drop in power consumption translates into a reduction of 209,547 tonnes of CO2 from natural gas or 349,585 tonnes of CO2 from coal.
Table
10.3.3.2. Project: Aeration Tanks – BWTP – 2005-2014
Dollars in 2001 constant USD
|
Economic Indicator |
Estimated Value |
|
|
Estimate |
Difference/Reduction compared to Status Quo |
|
|
Financial Position - Net Revenue (Loss) - Net Present Value (in 2005) |
($2.44 million) ($2.22 million) |
$8.11 million (76.9% gain) $6.76 million |
|
Economic Damages to the Environment - Tonnage of Monopollutant - Total Value - Net Present Value |
729,282 tonnes $397.1 million $361.0 million |
33,960 tonnes (4.4% reduction) $18.5 million $16.8 million |
|
Energy Consumption - Total Energy Consumption - Total Value - Net Present Value |
1,635.5million kWh $55.0 million $50.0 million |
408.9 million kWh (20.0% reduction) $13.76 million $12.51 million |
|
Total Tonnage of CO2 - Production from Natural Gas - Production from Coal |
838,186 tonnes 1,398,340 tonnes |
209,547 tonnes 349,585 tonnes |
Investment #3: Secondary Clarifiers
Based on the cost estimates presented in identified COWI study, and weighted to Project KVK-1, the estimated cost for this project is $7.24 million.
Based on estimates presented above, the following assumptions have been made:
- Projected reduction of pollution discharges in Dnieper River (conservatively estimated at):
- Ammonium nitrogen – by 16 tonnes per year;
- Nitrates – by 440 tonnes per year;
- Nitrites – by 210 tonnes per year;
- Phosphates – by 26 tonnes per year.
- 10% reduction in BOD5 and 5% in Suspended Solids.
- New Clarifiers will save 5% other processes energy cost.
- There would be a 5% cost savings on “Direct Material Costs” and 5% on “Maintenance-General.”
It is assumed that the project will be implemented in 2004, and the one-time cost will be funded through the “overall” operation of KVK.
Based on these assumptions, the BWTP will still be operating at a loss - $5.8 million over the timeframe – however, its net revenue would have improved by 45% (and $4.7 million lower operating loss).
Though conservative, the volume of monopollutant is anticipated to drop by 15,977 tonnes. This would translate into reduction in environmental damages of $8.7 million (a 2.1% improvement).
Total energy consumption is estimated to drop by 38.3 million kWh (a 2% reduction), which translates into savings of $1.29 million over the 10-year timeframe – just under one-sixth of the estimated project cost. In addition, this drop in power consumption translates into a reduction of 19,645 tonnes of CO2 from natural gas or 32,774 tonnes of CO2 from coal.
Table 10.3.3.3. Project: Secondary Clarifiers – BWTP – 2005-2014
Dollars in 2001 constant USD
|
Economic Indicator |
Estimated Value |
|
|
Estimate |
Difference/Reduction compared to Status Quo |
|
|
Financial Position - Net Revenue (Loss) - Net Present Value (in 2005) |
($5.83 million) ($5.30 million) |
$4.72 million (44.8% gain) $4.29 million |
|
Economic Damages to the Environment - Tonnage of Monopollutant - Total Value - Net Present Value |
747,265 tonnes $406.9 million $369.9 million |
15,977 tonnes (2.1% reduction) $8.70 million $7.91 million |
|
Energy Consumption - Total Energy Consumption - Total Value - Net Present Value |
2,006.0 million kWh $67.5 million $61.4 million |
38.3 million kWh (1.9% reduction) $1.29 million $1.17 million |
|
Total Tonnage of CO2 - Production from Natural Gas - Production from Coal |
1,028,088 tonnes 1,715,151 tonnes |
19,645 tonnes 32,774 tonnes |
Investment #4: Sludge Dewatering Facility
Based on the cost estimates identified by KVK Staff, , the estimated cost for this project is $8.83 million. This was identified as a priority by KVK staff, and felt to be the key element in improving overall plant efficiency. As noted earlier, polymer costs may prove prohibitive, but there may be potential cost savings. Compared to the other projects, this facility will be implemented relatively early in the treatment process and its benefits shared throughout the facility.
Based on estimates presented above, the following assumptions have been made:
- Projected reduction of pollution discharges in Dnieper River (conservatively estimated at):
- 15% across the board on all parameters
- Dewatering facility will save 10% other processes and aeration energy costs.
- There would be a 7.5% cost savings on “Maintenance-General” and 2.5% on “Direct Material Cost.”
It is assumed that the project will be implemented in 2004, and the one-time cost will be funded through the “overall” operation of KVK.
Based on these assumptions, as with the previous projects, the BWTP will still be operating at a loss – $6.85 million over the timeframe – however, its net revenue would have improved by 35% (and $3.7 million lower operating loss).
Base on the overall 15% reduction across the board, the volume of monopollutant is anticipated to drop by almost 114,500 tonnes – the highest of the four projects. This would translate into reduction in environmental damages of $62.3 million.
Total energy consumption is estimated to drop by 204.4 million kWh (a 10% reduction), which translates into savings of $6.9 million over the 10-year timeframe – approximately 80% of the estimated project cost. In addition, this drop in power consumption translates into a reduction of 104,773 tonnes of CO2 from natural gas or 174,793 tonnes of CO2 from coal.
Table
10.3.3.4. Project: Sludge Dewatering Facility – BWTP –
2005-2014
Dollars in 2001 constant USD
|
Economic Indicator |
Estimated Value |
|
|
Estimate |
Difference/Reduction compared to Status Quo |
|
|
Financial Position - Net Revenue (Loss) - Net Present Value (in 2005) |
($6.85 million) ($6.23 million) |
$3.69 million (35.0% gain) $3.36 million |
|
Economic Damages to the Environment - Tonnage of Monopollutant - Total Value - Net Present Value |
648,756 tonnes $353.2 million $321.1 million |
114,486 tonnes (15% reduction) $62.3 million $56.7 million |
|
Energy Consumption - Total Energy Consumption - Total Value - Net Present Value |
1,840.0 million kWh $61.9 million $56.3million |
204.4 million kWh (10% reduction) $6.89million $6.25 million |
|
Total Tonnage of CO2 - Production from Natural Gas - Production from Coal |
942,960 tonnes 1,573,133 tonnes |
104,773tonnes 174,793 tonnes |
