Chapter 10 - Economic Analysis of Desalination Processes

Abstract

The objective of this chapter is to present elements desalination cost. The presentation outlines components of direct/indirect and operating cost. A number of case studies are presented for the calculation procedure. Also, a comprehensive review of literature cost data is presented. Economics of desalination processes shows that the production cost is divided into direct/indirect cost and annual operating cost. The direct capital cost covers purchasing cost of various types of equipment, auxiliary equipment, land cost, construction, and buildings. Indirect capital costs includes: freight and insurance, construction overhead, owner's Costs, and contingency. The unit product cost of RO process depends on the capacity. Recent field estimates give $0.55/m3 for the large RO project in Florida, USA, with a capacity of 113,652 m3/d. Examining recent data smaller capacity units give $0.83/m3 and $1.22/m3 for capacities of 40,000 m3/d and 20,000 m3/d, respectively. The most critical parameters in cost evaluation are the fixed charges (amortization) and the energy cost. Other parameters that have lesser effect on the unit product cost include the cost of chemicals. Further, four case studies for the major desalination processes are presented. All calculations are based on recent economic data extracted from the field data and design studies in the literature.