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Caofeidian 50,000m3/day SWRO Desalination Plant AQUALYNG Innovations in Global Desalination

With over 15 years experience in the desalination industry, Aqualyng Aqualyng – A Leading Player in the has developed into one of the most dynamic desalination companies International Desalination Market globally. In the relatively short span of time since 1996, the company has garnered an excellent industry reputation for delivering desalination plants for production of all qualities of water.

Aqualyng has currently installed SWRO plants in Aqualyng is owned by Staur Holding, CLSA, 8 countries in 3 continents, all equipped with its Pareto, IFC, the Lyng Group and Aqua Venture proprietary energy recovery device, the Recuperator, and is headquartered in Norway, Dubai and . which ensures the lowest life-cycle cost in the industry. The company is currently focusing on the growing Asian water market, with a prime focus on and India.

Since 2007, the company focus has been on the growing Build Own Operate market, where Aqualyng takes full development responsibility for the project, inclusive of design, EPC, financing and O&M. 2012 saw the commissioning of its landmark project, the 50,000 m3/day plant in Caofeidian, China.

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About Caofeidian Industrial Zone Caofeidian Desalination

Caofeidian Industrial Zone, a 2.5 hour drive from Beijing, epitomizes Project Details China’s ambition of sustainable industrialized growth. Caofeidian, Municipality A 310 square kilometer fully reclaimed zone, approximately half the size of Singapore, within Key Facts , was created with a vision to establish a circular economy with industries that complement > Size Phase 1: each other in a development that champions resource 50 000 m3/day recovery, renewable energy, emission reduction, and environmental protection. All these industries have > Type of Contract: one thing in common: a growing demand for water! Build Own Operate Transfer, 30 years

In 2009 when the Caofeidian Government was looking > Offtaker: China for a solutions provider to help meet their fresh water Tangshan Caofeidian Infrastructure demand with the increased development, they were Construction Investment Co. looking for a provider that not only had the financial strength to develop the project, but also the technology > Raw Water Quality: to lower the energy consumption for fresh water 36 000 TDS production. That solution provider was Aqualyng. > Product Water Quality: Chinese drinking water standard

> Commercial Operation Date Declared: September 2012

> Configuration: 5*10 000m3/day Single-pass RO skids

Scope & Responsibilities

Developer: Owners Engineer: > Aqualyng China > Aker Solutions China - Owned 50% Aqualyng (now known as Jacobs) - 50% Beijing Enterprises Water Group Ltd. Energy Recovery: > The Recuperator EPC Contractor: - Patented Aqualyng ERD system > Hangzhou Development Center of Water Treatment Technology Ltd. (HZWT)

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Project Milestones

Caofeidian 50,000m3/day SWRO Key Milestones

2007 2008 2009 2010 2011 2012 2013

16th 19th 12th 15th 20th 1st 12th 25th 10th 20th 25th 7th December November March March August November March April September September April July July Sept

Initial Client Framework Water purchase Project Groundbreaking Financial Close Process Hall Electro- First RO Skid Plant reached Partial Commencement Completion of Completion of Commerical Meeting agreement agreement Company Ceremony and building mechanical installed mechanical commissioning of full acceptance test acceptance test operation date signing with signed and EPC encompassing commencement structure installation completion of RO Train 1 commissioning for RO Train 1 for RO Train 5 declared Cofeidian Local contract signed JV Partners of EPC Contract completed commenced for Beijing for two RO Trains Government Incorporated to allow works Mayor Visit in PRC to continue during Winter

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The Process

Step 1 Step 2 Step 3 Sea Water Intake Pond SEA Water Intake Pumping Station Dissolved Air Floatation (DAF)

Step 4 Step 5 Step 6 Step 7 Self Cleaning Filter Ultra Filtration Ultra Filtration Filtrate Tank Catridge Filter

Step 8 Step 9 Step 10 Step 11 Step 12 High Pressure Pumps SWRO Membrane Rack Recuperator Remineralization Product Water

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Caofeidian Desalination Plant

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Caofeidian Desalination Plant

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The Pre-Treatment System

The facility is designed with a 2-stage pretreatment to minimize downtime due to seawater conditions. The use of Dissolved – Air Flotation as a pre-treatment for the Ultrafiltration system gives the highest flexibility of performance for a high average output percentage.

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Special Design Considerations Temperature & Environmental Discharge

Due to the high annual variation in ocean temperature (0-28ºC), special design consideration for the membrane separation (desalination) system allows high efficiency of operation in any season. Brine produced from the facility does not return to the sea (environmentally friendly) but is instead harvested for use by a local salt production facility (via evaporation).

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The Recuperator Our Competitive Edge in Technology

Undoubtedly the main point of difference between our competitors and us, The Recuperator is an energy recovery work exchanger patented and owned entirely by Aqualyng, making us the only water supplier in the world with its own patented energy recovery device.

The Recuperator fits into the classification of Isobaric Energy Recovery Devices, more specifically in the ‘piston-type’ work exchangers.

The Recuperator is the main reason the Caofeidian plant is delivering lowest life-cycle cost of water for the offtaker.

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Workings

The Recuperator uses the saline-reject (brine) from the membranes to pressurize pre-treated seawater in a sequential process regulated by the brine flow from the RO membranes.

The device consists of vertically standing pairs of duplex stainless steel chambers that work alternatively in a compression-transfer and decompression-discharge sequence. Pre-treated seawater comes from a pressurized feeding tank that keeps a constant flow and pressure into the system.

The Recuperator allows the pressurized brine to “recycle” its energy back to the membranes in conjunction with a booster pump – only that the brine is replaced with pre-treated seawater at an identical flow.

21 22 For more information about us, please visit: www.aqualyng.com or Email: [email protected]