Huntingdon Beach desalination water cost estimated

Poseidon Resources estimates the cost of drinking water produced at its proposed 189,000 m³/d Huntington Beach facility in southern California to be US$ 1,424/acre-ft (US$ 1.15/m³) in January 2013 dollars.

The Municipal Water District of Orange County (MWDOC) quoted the water price at the end of January, when it released Poseidon Resources' draft Water Reliability Agreement Term Sheet that outlines the parameters for negotiating the potential purchase of drinking water.

The figure does not include delivery or conveyance costs, which Poseidon estimates at US$ 94-138/acre-foot (US$ 0.07-0.11/m³). It also presupposes a subsidy of US$ 250/acre-ft (US$ 0.20/m³) from the Metropolitan Water District of Southern California.

The draft term sheet was distributed by Poseidon with a sample letter of intent, which provides a framework for future negotiations and discussions with Poseidon, as well a technical report developed by Richard Brady & Associates outlining water delivery alternatives and related distribution costs. MWDOC and 20 retail water providers are evaluating the potential of purchasing water from the Poseidon facility in a continued effort to enhance water supply reliability within Orange County.

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