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(GP/GT) for Additional Water Supply in the Lower Rio Grande

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Assum<strong>in</strong>g a geopressured well can produce 20,000 bpd of fluid @ 300°F and<br />

<strong>for</strong> 10 years, desal<strong>in</strong>ation of geopressured br<strong>in</strong>e <strong>in</strong>tegrated with <strong>the</strong><br />

production of methane gas is an economically viable <strong>in</strong>vestment <strong>in</strong> a water<br />

starved region. Assum<strong>in</strong>g a 15% discount, payback will occur <strong>in</strong> 4.3 years and<br />

have a NPV is $4,355,000 <strong>in</strong> 10 years. If <strong>the</strong> bottled water facility is not<br />

<strong>in</strong>cluded, <strong>the</strong> discounted payback period is 8.2 a year with a NPV of $546,633<br />

(Figure 11). This analysis shows <strong>the</strong> significant impact of us<strong>in</strong>g a bottled<br />

water facility to greatly <strong>in</strong>crease revenues.<br />

Add<strong>in</strong>g a b<strong>in</strong>ary power generator and sell<strong>in</strong>g electricity at 6 cents/kWh and<br />

sell<strong>in</strong>g gas and bulk and bottled water will result <strong>in</strong> a discounted payback<br />

period of 6.2 a year and a NPV of over $2,862,000.<br />

AGRICULTURE/AQUACULTURE ECONOMICS<br />

Based on <strong>the</strong> data assumed <strong>for</strong> a typical geopressured well, <strong>the</strong> potential~<br />

is marg<strong>in</strong>al <strong>for</strong> development of agriculture and aquaculture <strong>in</strong> most <strong>in</strong>stances<br />

although feasible <strong>in</strong> site specific areas primarily targeted <strong>for</strong> a high value<br />

added product. Economic analysis is based on <strong>the</strong> follow<strong>in</strong>g well conditions:<br />

• Flow = 580 gpm (20,000 bpd)<br />

• Temperature = 290°F<br />

• Total chlorides = 72,000 mg/L (ppm)<br />

• Location = Pleasant Bayou, TX<br />

• The geopressured fluid is cooled to -250°F as it passes through<br />

a b<strong>in</strong>ary power generator be<strong>for</strong>e it is made available <strong>for</strong> <strong>the</strong><br />

greenhouse facility.<br />

There are many possible comb<strong>in</strong>ations <strong>in</strong> which a facility can be developed;<br />

each approach will alter <strong>the</strong> project costs and profitability. Because this<br />

<strong>in</strong>dustry is <strong>in</strong> a development stage and immature f<strong>in</strong>ancially, it is most likely<br />

that a facility would be <strong>in</strong>stalled <strong>in</strong> phases as markets develop. Phased<br />

development would require a lower <strong>in</strong>itial capital requirement. Accord<strong>in</strong>gly,<br />

<strong>the</strong> analysis developed costs <strong>for</strong> <strong>the</strong> first phase of a multi-phase greenhouse<br />

and aquaculture facility. Phase 1 of this <strong>in</strong>stallation would <strong>in</strong>clude three<br />

fiberglass covered greenhouses, each 42 x 348 ft. A fiberglass covered<br />

cool<strong>in</strong>g pad house 21 x 348 ft would be attached to one side wall. The cool<strong>in</strong>g<br />

47

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