Tag Archive for: Desalination

San Diego regional water quality regulators issued a new permit for the development of permanent, stand-alone seawater intake and discharge facilities at the Carlsbad Desalination Plant. Photo: Water Authority

Fitch Boosts Desalination Plant Bond Rating

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Bonds from the Carlsbad Desalination Plant and pipeline were upgraded to BBB and given a stable outlook in a new report from Fitch Ratings, affirming the project’s sound management and its ability to provide a stable, reliable source of drinking water to the San Diego region.

As the largest, most technologically advanced and energy-efficient plant of its kind in the nation, the Claude “Bud” Lewis Carlsbad Desalination Plant’s stability stems from an effective collaboration between Poseidon Water and the San Diego County Water Authority.

That partnership will continue under a transfer of ownership from Orion Water Partners to Aberdeen Standard Investments approved Thursday by the Water Authority’s Board of Directors. The transfer – made public in June – will not alter day-to-day operations at the Carlsbad facility or create a fiscal impact to the Water Authority.

Poseidon Water continues to manage desalination facility

The plant will remain governed by terms of the 2012 Water Purchase Agreement between Poseidon Water and the Water Authority. That 30-year agreement requires Poseidon to obtain the Water Authority’s written consent of the transaction and to reimburse the Water Authority for its costs related to consideration of the consent request. Under the WPA, the Water Authority agreed to purchase between 48,000 acre-feet and 56,000 acre-feet of water from the desalination plant each year at a price established by the contract.  At the end of the 30-year term the Water Authority can assume facility ownership for $1.

“We are honored that maintaining Poseidon Water as the facility manager was integral to the Water Authority’s approval of the ownership transfer and by the Water Authority’s acknowledgement of our exemplary stewardship of this valuable resource,” said Carlos Riva, CEO of Poseidon Water. “We look forward to working alongside our new partners to continue providing the San Diego region with a climate-resilient drinking water supply and ensuring the plant continues its strong operations.”

Desalination plant is ‘hedge against drought’

Water Authority Board Chair Jim Madaffer said the desalination plant is a valuable asset that provides high-quality water, a hedge against drought and insurance against earthquakes that could disrupt imported water deliveries. “With more than 50 billion gallons of water produced and counting, the Carlsbad plant is a critical part of our region’s infrastructure – and we don’t expect the sale to change that in any way,” he said. “In fact, we anticipate many more years of productive partnering with Poseidon.”

The Carlsbad Desalination Plant has met approximately 10% of the San Diego region’s water needs. The planned construction of new, technologically advanced and environmentally sensitive intake and discharge facilities will further enhance operations.

Higher ratings expected to save ratepayers money

Plant partners also praised the improved ratings for the desal plant and the associated pipeline by Fitch Ratings, which upgraded bonds from BBB- to BBB based on the plant’s strong operational record, updated financing projections for capital improvements, and Fitch’s expectation that the positive trend in financial and operational performance will continue.

Also this week, Moody’s affirmed its Baa3 rating for the plant and pipeline bonds. When those bonds are refinanced, higher ratings are expected to save ratepayers money by lowering the interest rate paid on the debt.

Since its inception as a public-private partnership, the Carlsbad facility has received numerous national and international awards.

The P3 approach allowed the Water Authority to develop new, capital-intensive, public-serving infrastructure without incurring debt or negatively affecting bond ratings, a fact recognized in 2016 when S&P raised the Water Authority’s credit rating to AAA citing, in part, the successful delivery of the Carlsbad facility.

Positive Operating Performance Boosts Desal Plant Bond Rating

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Carlsbad, Calif. (October 24, 2019) – Bonds from the Carlsbad Desalination Plant and pipeline were upgraded to BBB and given a stable outlook in a new report from Fitch Ratings, affirming the project’s sound management and its ability to provide a stable, reliable source of drinking water to the San Diego region. As the largest, most technologically advanced and energy-efficient plant of its kind in the nation, the Claude “Bud” Lewis Carlsbad Desalination Plant’s stability stems from an effective collaboration between Poseidon Water and the San Diego County Water Authority.

That partnership will continue under a transfer of ownership from Orion Water Partners to Aberdeen Standard Investments approved Thursday by the Water Authority’s Board of Directors. The transfer – made public in June – will not alter day-to-day operations at the Carlsbad facility or create a fiscal impact to the Water Authority.

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Millions of People Are Running Out of Water – How Desalination Plants Are Trying To Fix That

/in , /by /CNBCby Adam Isaak

Today, one out of three people don’t have access to safe drinking water. One reason is that 96.5% of that water is found in our oceans. It’s saturated with salt, and undrinkable. Most of the freshwater is locked away in glaciers or deep underground. Less than 1% of it is available to us. Desalination is an important tool in the fight against water scarcity. Its reliability is becoming critical.

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West Basin Municipal Water District Presents El Segundo Desalination Plant to Manhattan Beach Leaders for the First Time

/in , , /by /The Beach Reporterby Kirsten Farmer

The final environmental study for a proposed desalination plant in El Segundo will soon be released, the City Council for adjacent Manhattan Beach learned this week, when it received its first formal presentation on the potential project — even though the West Basin Municipal Water District first pitched the plant in 2015.

If approved, the proposed $400 million plant — which would border El Porto, in El Segundo — would be capable of converting 20-to-60 million gallons of ocean water to drinkable water each day. District officials have said the plant is crucial to diversifying the region’s water supply, in case there’s an emergency or a severe drought.

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Credit Analysis Affirms Carlsbad Desalination Plant is Financially Strong

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Carlsbad, Calif. – The Claude “Bud” Lewis Carlsbad Desalination Plant maintains an investment grade rating in the latest report from Fitch Ratings, affirming the plant’s sound financial management and its ability to provide a stable, reliable source of drinking water to the San Diego region.  As the largest, most technologically advanced and energy-efficient desalination plant in the nation, the Carlsbad Desalination Plant’s revenue stability stems from an effective collaboration between Poseidon Water and the San Diego County Water Authority.

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Four Lessons From the Front Lines of California’s Water Wars

/in , , /by /Voice of San Diego by Ry Rivard Mentioned: San Diego County Water Authority

Were San Diego on its own, there wouldn’t be enough water to go around. Only about 5 percent of urban San Diego’s water comes from local rainfall, an almost meaningless amount that wouldn’t support our region’s 3 million residents.

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$100 million desalination project to be led by Lawrence Berkeley National Lab

/in , , /by /Bay Area News Group by Paul Rogers

In a effort to widen the use of a nearly limitless — but expensive — source of water for California and other places worldwide that are prone to shortages, Lawrence Berkeley National Laboratory has been selected to lead a $100 million project aimed at bringing down the cost of desalination.

The money, announced this week and awarded by the U.S. Department of Energy, will fund a research consortium of 19 universities around that the country that include Stanford, UC-Berkeley, UCLA and others, along with 10 private industry partners and other Department of Energy institutions, like Oak Ridge National Lab in Tennessee.

The goal, organizers say, is to reduce the cost of removing salt from ocean water to make it a more viable drinking water source for California and other areas. Closely related, planners also hope to clean up other types of water that are being largely wasted or underused so they can be a source for cities, farms and wildlife.

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Marina Coast Sues Monterey County, Cal Am Over Desal Plant Approval

/in , /by /The Monterey County Herald (Monterey, Calif.)by Jim Johnson

Arguing that Monterey County officials improperly ignored new groundwater impact information and a viable, even preferable recycled water alternative, Marina Coast Water District has sued the county and California American Water over the county’s narrow approval of Cal Am’s desalination plant permit. On Thursday, Marina Coast filed suit in Monterey County Superior Court seeking to halt the start of construction on the desal plant project through a writ of mandate and injunctive relief. The suit asks the court to order the county to rescind its approval of a combined development permit for the project until full compliance with the California Environmental Quality Act, water code, and planning and zoning law.

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OPINION: Desalination Loses More Urgency In Hyper-Wet Winter

/in , /by /Ventura County Star (Camarillo, Calif.)by Tom Elias

Desalination began to lose its urgency among Californians and their public officials two years ago, after the drought-busting winter of 2016-17, when heavy rain and snow ended dry conditions in most of the state. The idea of drawing potable water from the sea became even less of a priority this year, when an autumn of record-level fires gave way to one of the state’s wettest winters on record. Reservoirs are brimming. Instead of desperately seeking new sources of water, Californians were moaning about the billions of excess gallons that washed into the Pacific Ocean and the San Francisco Bay. Depleted aquifers began their path to replenishment, too, with snow levels in the water-producing Sierra Nevada Mountains far above normal.

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Scientists Cook Up New Recipes For Taking Salt Out Of Seawater

/in , , /by /PHYS.org (Los Angeles)

As populations boom and chronic droughts persist, coastal cities like Carlsbad in Southern California have increasingly turned to ocean desalination to supplement a dwindling fresh water supply. Now scientists at the Department of Energy’s Lawrence Berkeley National Laboratory (Berkeley Lab) investigating how to make desalination less expensive have hit on promising design rules for making so-called “thermally responsive” ionic liquids to separate water from salt. Ionic liquids are a liquid salt that binds to water, making them useful in forward osmosis to separate contaminants from water.

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