Utilization of Mixed Oxidants to Improve Residual & Overall Water

Utilization of Mixed Oxidants to Improve Residual & Overall Water Quality in Distribution Systems

CA/NV Fall Conference Rancho Mirage, CA October 24, 2018 MIOX Background & Overall Experience

2 MIOX-Leader in On-Site Generation Technology

Johnson Matthey MIOX Corporation

Background Background

• Established 1817, FTSE 100 since 2002 • MIOX fully acquired by JM on April 1, 2016 • Public company, listed on London Stock Exchange (ticker: JMAT) • Leader in on-site disinfection generation through electrolysis • Leading global positions in emission control, catalysts and chemicals • 4000 installations in cooling, municipal, food & bev, oil & gas • Award-winning commitment to sustainability • More than 55 patents around technology and chemistries • Regularly voted one of Britain’s most admired companies by its peers

MacRobert Award Numerous for Engineering in Queen’s Awards Best Sustainability & 1980 and 2000 Large Cap Business for Enterprise of the Year 2011 Stakeholder Disclosure 2015

Key metrics (2015) In >30 countries

• Market capitalisation (current) $7.0bn • Annual Revenue $4.2bn • Underlying operating profit $750m • Return on invested capital 18.8%

3 MIOX today

4000+ INSTALLED BASE

Municipal (2000+) 1500 in North America 500 in Latin America, Middle East and Asia Industrial Cooling (1000+) Data Centers: Amazon, Large Search Engine Provider, Leading Semiconductor Manufacturer, Leading Credit Card Company Power Plants (10+) - PREPA, PNM, NIPSCO Syngas: CF Industries Light Industrial: NRG, Enwave, Levi Strauss, Southwire, 3M Comfort Cooling (500+) Buildings: Paramount NY (11), US Government (10) Hospitals (100+): VA (9), John Hopkins, Univ. of Chicago, Northwestern, Cal State, VCU, U of North Carolina… BROAD IP PORTFOLIO Hospitality: Hyatt (3), Hilton (1)… • 55 Patents Food & Beverage (10+) Coca Cola, AB Inbev • 27 Issued Oil & Gas (6) • 28 Pending Southwestern Energy, Express Energy, Newalta • 35 filed since ‘10 • Both custom chemistries & equipment (Domestic & International) 4 MIOX Wide Range of Generators

HYPOCHLORITE

MOS (HYPO + PEROXIDE)

1 to 2000 lb/day per generator

RIO Zuni AE Series VAULT RIO RIO-S Mobile Trailer

Potable Water 200 People ------to ------10 Million

Pools & Spas 10,000 ----- to ----- 1 M Gallons

Dairy Farms 100 ---- to ---- 5000 Milk Cows

Waste Water 1,000 Gallons ------to ------100 MGD

Produced Water 0.5 ------to ------5 MGD

Frack/Flood Water 10 to 100 Barrels / Minute

Cooling Tower 50 Tons ------to ------200,000 GPM What are Mixed Oxidants? Mixed Oxidants are Produced by On-site Generation

• On-site generation is when basic, simple chemicals are used to generate chemical at the point of use • In this case, the chemical produced is a chlorine-based disinfectant generated using salt Why Use On-Site Generation? Safety is One Major Reason

OSG • Regulations • Trend toward the safest solution • Limit on hazardous chemical storage

• Incidents

• Recent near miss of Cl2 leak at two large industrial facilities South East US • Chlorine dioxide related fatalities: GM plant in 2014, Midland TX Oilfield 2016

• Sustainability • Less trucks, lower carbon footprint • Water conservation, less chemicals Operational Cost is Another… To produce 1 lb of 100% Free Available Chlorine equivalent to 1 gallons of 12.5% hypo

Salt Electricity Operational Cost

MIOX $0.36 + $0.18 = Cost ~$0.54

Equivalent to 1 gallon of delivered 3 lbs salt at $0.12/lbs (or delivered brine) 2.5 kW-hr power at $0.07/kW-hr 12.5% sodium hypochlorite ~$0.10 addt’l including parts maintenance Equivalent Operational Cost

12.5% Sodium Hypochlorite $0.65 ~ $2.50 Chlorine Gas $0.40 ~ $.75 and Performance is the Third

• Mixed Oxidants outperform typical bleach generators by providing enhanced behaviors Future Regulatory Challenge? (Chlorate)

- • Chlorate (ClO3 ) is on the EPA’s Third Chemical Contaminant List (CCL3) • indicating that the intention of the Environmental Protection Agency (EPA) to review chlorate as a potential candidate for regulation under the Safe Drinking Water Act. • Chlorate is suspected to have negative health impacts such as thyroid issues, reduced hemoglobin production, and reduced weight gain. • Chlorate is a highly oxidized form of chlorine, can be introduced to a water source as an industrial or agricultural contaminant or into a finished water as a disinfection byproduct (DBP). • As a DBP, chlorate can result from water disinfection with bulk sodium hypochlorite, chlorine dioxide, or hypochlorite formed through electrolytic on-site generation (OSG) systems.

12 Future Regulatory Challenge? (Chlorate)

• Currently, chlorate in drinking water is not regulated in the United States and there is no enforceable Maximum Contaminant Limit (MCL). o Canada MCL is 1.0 mg/l (1000µg/l). o WHO recommends a chlorate limit of 0.7 mg/l (700 µg/l) • While no final recommendation has been promulgated, literature on the topic indicated that the regulation may fall within the range of 0.21 mg/l(210 µg/l) to 0.8 mg/l (800 µg/l) in the US. • While 210 µg/l as established by the EPA as a health reference level, it is conjectured that the EPA will not establish such a low level as it will seriously impact the viability of using delivered bulk hypochlorite in the marketplace.

13 Chlorate Impacts on Bulk Hypochlorite

• To limit chlorate formation, users of bulk hypochlorite may need to: o Move storage indoor, if not already located there. o Cool the room where the hypochlorite is stored to retard degradation. o Require “born-on dating” from the manufacturers to ensure freshness. o Limit storage volumes. o Purchasing lower concentrations to slow the degradation. o Dilute the concentrated hypochlorite once it has been delivered to the treatment plant. • All of these will have significant cost impacts!!!!!

14 “Future Proof” Against Chlorate with OSG

• Testing shows MIOX’s RIO OSG systems typically produce less than 40 micrograms per milligram of free available chlorine (FAC). • Even at a high FAC dose of 5 mg/L, the expected chlorate concentration in the treated water will be less than 200 µg/L. • Water treatment plants usually dose 2 – 3 mg/L FAC so chlorate content will likely be half of the lowest contemplated chlorate regulatory limit. • Generated on-site – always fresh. • <1% chlorine concentration = very slow degradation rate. • Modular in nature o as regulations change, upgrades are simple and easy to implement.

15 How Does It Work? Typical Process Flow HYPO HYPOCHLORITE

MOS HYPO + PEROXIDE

18 Cell Reactions

• Anode Primary Reaction (+ Side): 2 Cl- → Cl2 + 2 e-

• Cathode Reaction (- Side): 2 H2O + 2 e- → H2↑ + 2 OH-

• Chlorine Hydrolysis Reaction: Cl2 + H2O → HOCl + Cl- + H+ • HOCl Equilibrium Reaction: HOCl ↔ OCl- + H+ (depends on pH)

If you stop here, you have a hypochlorite generator… Cell Reactions

• Anode Primary Reaction (+ Side): 2 Cl- → Cl2 + 2 e-

• Cathode Reaction (- Side): 2 H2O + 2 e- → H2↑ + 2 OH-

• Chlorine Hydrolysis Reaction: Cl2 + H2O → HOCl + Cl- + H+ • HOCl Equilibrium Reaction: HOCl ↔ OCl- + H+ (depends on pH)

If you stop here, you have a hypochlorite generator… …But if you add more power… Cell Reactions

• Anode Primary Reaction (+ Side): 2 Cl- → Cl2 + 2 e-

• Cathode Reaction (- Side): 2 H2O + 2 e- → H2↑ + 2 OH-

• Chlorine Hydrolysis Reaction: Cl2 + H2O → HOCl + Cl- + H+ • HOCl Equilibrium Reaction: HOCl ↔ OCl- + H+ (depends on pH)

If you stop here, you have a hypochlorite generator… …But if you add more power…

• Anode Secondary Reaction (+ Side): 2 OH- → H2O2 + 2 e- Performance and Benefits of Mixed Oxidants Municipal Water Treatment The peroxide component in Mixed Oxidant Solution (MOS) enhances the performance of the chlorine

• Superior microorganism inactivation • Control/Eliminate biofilm • Reduced coagulant consumption • Longer-lasting residual • Reduced formation of DBPs, AOX • Accelerated breakpoint chlorination - Improved taste and odor • Cost effective removal of Ammonia and Sulfides • Faster oxidation of manganese Municipal Water Treatment

The peroxide component in Mixed Oxidant Solution (MOS) enhances the performance of the chlorine

• Indicates Chemistry is Different • Produces more powerful disinfectant than Hypochlorite • More power is derived from Hydrogen Peroxide in solution with Hypochlorite <48 hrs

25 Biofilm Creates Multiple Challenges

• Acts as an oxidant demand (consumes chlorine) • Provides an additional carbon source

• Therefore - High chlorine + more organics = DBP troubles

26 Why is Biofilm so Hard to Control? • Bacteria secrete it for several reasons • Helps transport nutrients to the organisms • Helps transport waste from the organisms • Protects the organisms from adverse environmental conditions • Example: Chlorine!!!

27 Biofilm Harbors Legionella & Corrosion

Biofilm Harbors Organisms Microbially Influenced Corrosion (MIC)

Although Hypochlorite and other Pitting corrosion on 316S proprietary biocides inactivates stainless steel* Legionella, it cannot inactivate Legionella in the Biofilm

* Montana State University, Center of Biofilm Engineering (MSU-CB) Where MOS Fits In Typical Surface Water Treatment Facility Layout

1 2 3

 Control/Eliminate biofilm 4

 Reduce Demand  Reduce Dosage  Reduce DBPs

 Longer-lasting residual

 Accelerated breakpoint chlorination - Improved taste and odor

1. Pre-oxidation  Reduced coagulant consumption 2. MF/UF Pre-feed 3. Clean in Place (CIP) 4. Final Disinfection Biofilm Removal Across Many Applications

Piping Pool

Condenser Frac Pond

Gravity Filter Hot Tub

Cooling HVAC

Cost Safety Control CASE STUDY CASE STUDY Spa in Japan previously using Bulk Hypochlorite 1.5 A city in Texas was using Gas Chlorine where mg/L had Legionella cases. In 5 hours of Mixed brown biofilm slime on pipes in distribution Oxidant solution biofilm started sloughing system commonly noticed. 22 days 1 Year BEFORE MOS AFTER MOS BEFORE MOS AFTER MOS

► Extensive biofilm ► Biofilm eliminated

► Legionella CFU >5 ► No bacterial hits Distance from Distance from Treatment Plant: Treatment Plant: ► Dose: 1.5 mg/L Hypo ► Dose: 0.6 mg/L Hypo 200 feet 1/2 mile ► Residual: 0.2 mg/L ► Residual: 0.4 mg/L Lower Disinfection Byproduct Formation

32 Reduced Dose + Higher residuals Disinfection By-Product Formation Reduction • DBP troubleshooting can help identify if MOS makes sense…

Surface Mix/Floc/Clar Filtration Source Clearwell Distribution Disinfection By-Product Formation Reduction

• DBP troubleshooting can help identify way forward… If High DBPs are measured prior to Distribution System, Improved pretreatment may help

Surface Mix/Floc/Clar Filtration Source Clearwell Distribution Microflocculation Effect May Improve Organic Matter Reduction and Reduce Coagulant Cost

• Effect can improve removal and settleability at a lower effective dose • Enhanced DOC removal can lead to lower formation potential Reduce Coagulant Usage by up to 40% Disinfection By-Product Formation Reduction

• DBP troubleshooting can help identify way forward… If High DBPs are measured If High DBPs are forming prior to Distribution System, in Distribution System, consider Mixed Oxidants Improved pretreatment may help

Surface Mix/Floc/Clar Filtration Source Clearwell Distribution Some Additional Testing Can Help Decide

DBP Formation Potential (DBPFP) can help tell you what is going on:

Scenario 1 If the DBPFP is say 40 ppb, but the sample from the furthest test location is 100 ppb, then you know the distribution system is strongly contributing to the formation.

This is usually due to the presence of biofilm in the distribution system acting as an additional carbon source. In this case, this is a textbook case of where MOS can be of significant value. Some Additional Testing Can Help Decide

DBP Formation Potential (DBPFP) can help tell you what is going on:

Scenario 2 If the DBPFP is high, say 85 ppb, and the sample at the furthest point is something like 90 ppb, then the distribution system is pretty clean.

Therefore more focus should be given to improving the pretreatment to reduce the DBP precursors coming through the water treatment plant. Some Additional Testing Can Help Decide

DBP Formation Potential (DBPFP) can help tell you what is going on:

Scenario 3 If the DBPFP is high, say 85 ppb, and the sample returns at something like 125 ppb, then you know that both the precursors and the distribution system are contributing to the problem and both areas should be targeted for improvement – once again, and ideal case where MOS could be used. Case Studies Laguna Beach County Water District Summit Reservoir (600K gallons) & Hastie Reservoir (1.95 M gal) Morro Reservoir (2) 5 MM gallon reservoirs Laguna Beach, CA Contact: John Langill, WTP Manager System: One (1) VAULT M30 & One (1) RIO-M2 Total Capacity: 150 #FAC/day Installation Date: March 2016 Source Water: Purchased Surface Applications: Reservoir Residual Management Benefits: DBP Reduction, Chlorine Residual Improvement, Residual Stability

District has reported that water quality improved & residual benefits have extended to other reservoirs in system. Paducah Water, Paducah, KY

Contact: Ricky Gilbert, Plant Superintendent Plant Capacity: 20 MGD System: (3) RIO M5 SC (900#FAC/day) Prior Disinfection: Chlorine Gas Installation Date: February 2015 Source Water: Surface Application: Pretreatment Final Disinfection Benefits: Safety, TTHM reduction, chlorine residual enhancement, PW no longer re-chlorinates at four (4) booster stations in their distribution system since switching to MOS Prestonsburg Utility Commission, KY

Contact: Brian Music Plant Capacity: 5 MGD System: MIOX- 5001 (2004) RIO-M5 SC (2014) & RIO-S M900 (2018) Total Capacity: 1200# FAC/day Prior Disinfection: Chlorine Gas Installation Date: August 2004 System Upgrades: 2014, 2018 Source Water: Surface Application: Pretreatment, Final Disinfection Benefits: Safety, TTHM reduction, chlorine residual enhancement Peoria, AZ

Sunrise Water Company, Peoria, AZ Contact: Marvin Collins Phone: (623) 972.6133

System: VAULT M15-SC Total Capacity: 15# FAC/day Installation Date: December 2013 Prior Disinfection: MIOX HYPO 20

Source Water: Ground Water Application: Final Disinfection Scottsdale, AZ

Westworld Well Scottsdale, AZ

System: Vault M15-SC Total Capacity: 15 #/day FAC Prior Disinfection: Chlorine Gas Installation Date: January 2009 Source Water: GWUDI

Application: Ground water replenishment, algae control, Final disinfection Benefits: Safety, Algae control

47 Town of Westerly, RI Multiple Well Sites

Systems: SAL-80 (10# FAC/day); MIOX-501 (50 #FAC/day); VAULT M15 (15 #FAC/day) Total Capacity: 75 #FAC/Day

Prior Disinfection: Bulk Hypo

Installation Date: 2008 &- 2013

Source Water: Groundwater

Applications: Final Disinfection; Taste & Odor

Benefits: Improved chlorine residual, improved water quality, improved corrosion control 48 Westover Air Reserve Base, Chicopee, MA System: RIO ZUNI 2 Total Capacity: 2 #FAC/Day

Prior Disinfection: Not Applicable - New Site

Installation date: 2013

Source Water: Purchased Surface Water

Applications: Final Disinfection

Benefits: Improved chlorine residual in distribution, improved water quality, reduction in volume of flushing in distribution system on per annum basis.

49 Danville WTP, Danville, KY

Contact: Andy Tompkins, WTP Superintendent

Plant Capacity: 10 MGD

System: (3) RIO-M5 SC (900#FAC/day)

Prior Disinfection: Chlorine Gas

Installation Date: Legacy MIOX units initially installed in 2002 were replaced in 2016 & 17 Source Water: Surface Application: Pretreatment, Final Disinfection Benefits: Safety, Reduced Liability, TTHM reduction, chlorine residual enhancement, They no longer re-chlorinate at five (5) booster stations in their distribution system since switching to MOS MIOX On-Site Generators – Features & Benefits

51 MIOX OSG System-Features/Benefits Electrolytic cell design

• Modular cell design for improved efficiency and reduced footprint. • Provides customers with the option to increase future production capacity within the same enclosure. • MIOX electrolytic cells are uniquely designed to ensure consistent oxidant production across the cell surface.

53 Patented Self-Cleaning technology

• Patented self-cleaning through reversing polarity of the cells to remove impurities and salt build up on the electrodes. • This proprietary process virtually reduces the need for acid cleaning and operator intervention.

54 Automated flow control

• Automatic flow control with PID controller • Optimal brine feed • Optimal water feed • No need to manually readjust flows with temperature variation • Minimize operator intervention • New leak detection indicator to isolate cell bank and avoid catastrophic failure

55 Remote monitoring

• Remotely view system operating parameters and data • Helps stay proactive • Enables faster maintenance support response • Real time alarm notification • Modem connection and Red Lion control as optional add-on features • Standard Allen Bradley MicroLogix 1400 PLC

56 Passive hydrogen venting

• A safer hydrogen venting process, via a liquid barrier • No moving parts • No electrical • No check valves. • Uses a gas trap system to prevent hydrogen gas from entering the oxidant storage tank. • Dilution air blower(s) is always an option: • Blower(s) only • Passive venting + Blower(s) • Standpipe + Blowers on large systems

57 Salt Quality

In solution mining, wells are erected over salt beds or domes (deposits of salt forced up out of the earth by tectonic pressure) and water is injected to dissolve the salt. Then the salt solution, or brine, is pumped out and taken to a plant for evaporation. ... Most table salt is produced this way.

58 Options Sizes & Forms

59 Salt Quality

60 Ask for Salt Quality Guidelines

61 62 Preventative Maintenance-RIO-S

63 Preventative Maintenance-RIO

64 Preventative Maintenance-VAULT

65 Preventative Maintenance-AE Series

66 Preventative Maintenance-RIO Zuni

67 Customer Care Team

We are proud of ~90 Years of combined MIOX experience

The Level of a Company’s Customer Service is Not Determined by the Absence of Mistakes… It is Determined by the Company’s Response and Resolution to Errors. -Diane Grover

MIOX has ~2 million in inventory and over 5000 sq. ft. dedicated to parts storage Customer Care – It’s a Company Thing!

We Care and WANT to Help! Through a global sales and service network, MIOX is able to provide excellent and timely customer service,  1.800.646.9426, option 2  Service Department Hours: 8AM - 9PM Central Time, 7 days per week  [email protected]  Every email is tracked and logged in our system and visible to the entire Customer Care group, Sales and Executive Team  Fill out our online Service Form at www.MIOX.com Thank You for Your Time…...... Questions?

Bob Newton Senior Director Global Municipal Business (215) 272-8966 (Mobile) [email protected]