An Oceanographic Solution to Produce Fresh Water Project Overview - - PowerPoint PPT Presentation

An Oceanographic Solution to Produce Fresh Water

August 2016

Project Overview

DWD Management Team and Municipal Partners

David Armanasco, DWD Public Relations/Govt. Affairs

August 2016

3

Management Team

Brent R. Contantz, Ph. D.

Manager and Chief Executive Officer

• Serial Silicon Valley entrepreneur
• Founded and led six corporations, most recently

Calera Corporation 2007 - 2010

• Inventor on over 100 issued US patents and 100

pending US patents

Dennis R. Ing

Chief Financial Officer

• 30+ years experience in high technology

companies in senior management positions

• Former CFO of two public companies Trimble

Navigation and HCL Technologies, which he took public in 1999

David Armanasco

Public Relations/Government Affairs

• 30+ years experience in public relations
• Served as commissioner of the California Coastal

Commission from 1996 - 1999

• Held numerous leadership roles for community
• rganizations around Monterey

James G. Heisinger, Jr.

General Counsel

• 35+ years practicing land use, environmental, and

municipal law

• Served as contract city attorney for Sand City, CA

which recently completed first municipality owned desalination facility on the California coast

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Management Team (Cont.)

Ray Harris

Chief Power Officer

• 30+ years experience in energy and utilities

industries

• Most recently served three years as President of

MasTec, a large construction company traded on the NYSE

Kim Adamson

General Manager

• 20+ years experience in engineering and public

water utility management

• Specializes in collaborative governance and JPA

formation/operation

• Served as General Manager of SqCWD

KC Mares

Chief Data Center Development Officer

• 20 years experience in design, construction and
• peration of data centers worldwide
• Customers include Facebook, Google, Yahoo,

Equinix, Bloomberg, Sun Microsystems and Apple

• Specializes in energy efficincy and sustainable power

Ambassador John A. Bohn

Chief Strategist

• Recently completed a 6 year term as

Commissioner of the California Public Utilities Commission (CPUC)

• Former U.S. Ambassador and Executive Director of

the Asian Development Bank

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Current / Potential Water Off Takers*

Off Taker Form of Agreement Quantity

City of Salinas Salinas Memo of Understanding Q2 2013 (via Cal Water Services and ALCO) 10,000-15,000 acre feet

MPWMD www.mpwmd.dst.ca.us

Monterey Peninsula Reimbursement Agreement Q2 2014 (alternate to CalAm Project) First Right to 9,000 acre feet Soquel Creek Water District

www.soquelcreekwater.org

Kennedy/Jenks Engineering Study Q3 2014 MOI Executed Q2 2015 1,500 acre feet Castroville Community Services District

www.castrovillecsd.org

MOI Signed Q3 2014 1,000 acre feet Pajaro Sunny Mesa Community Services District

www.castrovillecsd.org

MOI Signed Q1 2016 1,000 acre feet *We are in discussions with several other off takers as well.

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Project Interest

• Profiled in COP 21

Official Publication for the 2015 Paris Climate Summit – November 2015

• National Geographic

– June 2016

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Project Interest

Project Overview

Kim Adamson, DWD General Manager

August 2016

9

Moss Landing Overview

Seawater Conveyance System

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MBRWP Site Design for Moss Landing Campus

Data Center Complex Desalination Plant Power Sub-Station

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Innovative Design and Synergistic Components

Data Center Desalination Facility

Intake Pipeline

Cool Ocean Water Brine Discharge

Outfall Pipeline

Potable Water

Castroville Monterey Peninsula

Potential Offtaker Distribution

Heat Exchanger

Salinas Soquel Creek Water District Pajaro Sunny Mesa Water District

Carbon Capture Facility Power Facility

CO2 Emissions Aggregate Offtake - Green Building Materials for Facility Construction Green Power for Facility Operation

Water Needs: 22,500- 27,500 afy

DWD Subsurface Feasibility Workplan

August 2016

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Subsurface intake geologic feasibility based on existing data

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MPWSP Hydrogeologic Investigation

Moss Landing Area Potrero Road Area Monterey Dunes Area

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Slant Well Conceptual Geometry

• Thicker Aquifer Allows More

Setback from the Coast

• Thinner Aquifer Allows Less

Setback from the Coast

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Based on Cal-Am MPWSP Design

MPWSP Design 9,500 AFY production 8 slant wells + 2 backup 1,500 feet of beachfront access MBRWP 25,000 AFY production 21 slant wells + 2 backup 1 mile of beachfront access

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Required Slant Well Field

• Majority of the

infrastructure must be installed on

• State Park Land
• Other Protected

Areas (refuge)

• New Roads must be

built on protected areas

• Power must be run

to protected areas

• Must drill under the slough
• Well screens will not reach

the coastline

• Increased pumping to draw

in seawater

• Increased drawdown
• Increased fresh water

flow from inland Potential Well Locations

Impingement and Entrainment Evaluation Information from Tenera

August 2016

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Deep versus Shallow (Abundance)

70% less larval fish per cubic meter at 130 ft.

• Plankton Samples were taken at two depths; 80 ft

and 130 ft, day and night, over a 12 month period (224 samples)

• Average concentration of total fish by depth:
• Deep – 0.271 larval fish per m3
• Shallow – 0.895 larval fish per m3
• Samples also revealed a significant difference in

size between the deep and shallow locations.

• The addition of the 1.0 mm wedgewire screen

reduces annual entrainment by nearly 4% at the deep location compared to 2% at the shallow location due to difference in fish size.

Permitting - Determination of Need

August 2016

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Need for Water Sustainable Groundwater Management Act

The Act mandates that local groundwater sustainability agencies develop groundwater sustainability plans to prevent “undesirable results” of chronic groundwater overdraft and

• ther impacts, as well as to consider the interests of “all

beneficial uses and users of groundwater …”

Surface Water Cutbacks

Both the Carmel River and the San Lorenzo River are either already under or will soon be under mandatory use reductions.

Based on current demands, mandated reductions in Monterey Bay area rivers and basins result in a 46,700 Acre Foot per Year deficit. This will have to be addressed through a combination of conservation and supplemental supply projects. This does not account for needs associated with additional growth.

Partnership Structure and Estimated Costs

August 2016

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Public Private Partnership – Build, Operate, Transfer Model

Design, Build, Own, Operate and Transfer Public Private Partnership Model

JPA

Public Water Agency Public Water Agency Project Debt Plant Ownership

Project Company

Engineering, Procurement & Construction O&M Service Agreement

Water Purchase Agreement JPA Purchases Plant for $1 after 30 Yr Operation Period Project Company Funds Construction through Third Party Equity and Debt DWD and Engineering/Construction Partner Pay to Develop, Build and Operate Plant Project Company Paid Operation and Maintenance Expense Project Company Paid Plant Construction

*Transmission capital and Operating Costs are paid by Individual Off-takers or JPA

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Intake/Outfall Structure Capital and Operating Costs

Data Center SWRO Plant

Seawater Conveyance Infrastructure

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Cost of Power

City of Salinas SWRO Plant Water Offtakers

Salinas forms Municipal Power

• Agency. Wholesale power is

purchased and sold to a single customer at approximately half

• f the retail commercial rate.

SWRO Operator saves approximately 53% on annual energy costs. Energy cost savings are passed on to water

• fftakers, including the

City of Salinas in a lower cost per acre foot.

Permitting – Milestones and Strategies

August 2016

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Overview of our Project’s Milestones to Date

Project Value

Mar ‘12: MOU with Dynegy for “Tank Farm Parcel” and offshore easements April ‘11: DeepWater formed May ‘14: Preliminary CEQA application submitted to Lead Agencies for joint EIR/EIS June ’13: Science symposium, Moss Landing Marine Laboratories – Tenera study results published Jan ‘12: Tenera oceanographic study initiated Sept ’13: Designation as Alternative Desal for Monterey Peninsula WMD with $800K matching funding Jan ’15: Final CEQA application submitted June ’12: Initial closing of Series A Financing ($4 million total investment) Dec ‘12: MOU with Salinas re: utility, fiber, and water offtake Nov ‘15: EIS/EIR initiated – Dudek Associates retained

25,000 acre feet per year desalinated water 100 megawatt data center complex Over the last 5 years: 32 Scientific studies and technical reports $8M cost

Mar ‘16: Completion of 10% Design Apr ‘16: Completion of Biological/Cultural Resource Studies Jun ‘16: Completion of Marine Biological Resource Studies Mar ‘16: Completion of I/O Feasibility Study Mar ‘16: Early Coordination with Fish and Wildlife Apr ‘16: Early Coordination with State Water Resources Control Board

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• Amended application in

response to NOP/NOI public comments - COMPLETE

• Amend application after

EIR/EIS Consultant/Lead Agency Comments - COMPLETE

• Revise Project Narrative with

preferred intake/discharge locations – COMPLETE

• Early Coordination w/ Key

Permitting Agencies- UNDERWAY

• Draft EIR/EIS released for public

comment

• Final EIR/EIS released
• CSLC Certification of EIR
• MBNMS Record of

Determination

Key Development Milestones - Forward

Permitting Political and NGO Education and Support

• Complete MOUs with other

regional water off takers – including Cal Water Service Co. (Salinas) - 20-25K AFY commitments total- COMPLETE

• Determine Power Purchase

Price- COMPLETE

• Ownership/Governance of Water

Facility and Infrastructure

• Determine Water Pricing -

UNDERWAY

• Draft Water Purchase

Agreement with Term Sheet

• Develop Outreach Materials-

UNDERWAY

• Meet with Key Outreach Targets-

UNDERWAY

• Determine data center cooling

available and distribution (tiering & tenant/co-locate)

• Determine Power Purchase

Price- COMPLETE

• Determine Data Center Land

Lease Pricing - UNDERWAY

• Draft First datacenter MOU

Water Commitments Data Center Commitments

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Need for Water

Start Fri 1/1/16 Finish Sat 3/31/18 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16 Jan '17 Feb '17 Mar '17 Apr '17 May '17 Jun '17 Jul '17 Aug '17 Sep '17 Oct '17 Nov '17 Dec '17 Jan '18 Feb '18 Mar '18 90% Design Wed 1/18/17 - Tue 9/26/17 EIR/EIS Sun 4/5/15 - Fri 9/22/17 Conditional Coastal Permit Mon 10/16/17 - Fri 3/30/18 10% Desgn Fri 1/1/16 - Wed 3/30/16 Offtakers Identify DWDesal in their UWMP Fri 1/1/16 - Thu 6/30/16 JPA or Wholesale Agreements between Offtakers Fri 7/1/16 - Wed 12/28/16 Power Agreements Mon 2/1/16 - Mon 12/5/16 Early State/Federal Agency Permit Coordination Tue 3/8/16 - Wed 11/1/17 Subsurface Feasibility Mon 2/1/16 - Wed 10/12/16 Today