Sewater Air-conditioning (SWAC) at Cabo Rojo in Pedernales, Dominican Republic A Technical and Financial Assessment CONTENTS 1 INTRODUCTION ............................................................................................................................... 5 1.1 PURPOSE OF STUDY ................................................................................................................. 5 1.2 METHOD OF STUDY ................................................................................................................. 5 1.3 EXECUTIVE SUMMARY ............................................................................................................. 6 2 SITE DATA ........................................................................................................................................ 7 2.1 LOCATION ................................................................................................................................ 7 2.2 LAND DATA .............................................................................................................................. 7 2.3 BATHYMETRIC DATA ................................................................................................................ 8 2.4 TEMPERATURES PROFILES ....................................................................................................... 9 2.5 METOCEAN DATA .................................................................................................................. 11 3 CASE STUDIES ................................................................................................................................ 14 3.1 CASE STUDIES ........................................................................................................................ 14 3.2 COOLING CAPACITY & TECHNICAL CHARACTERISTICS .......................................................... 14 4 SWAC TECHNICALS ........................................................................................................................ 15 4.1 DEEP SEA WATER PIPELINE .................................................................................................... 15 4.1.1 ESTIMATED ROUTE ......................................................................................................... 15 4.1.2 SWAC PIPELINE DESIGN .................................................................................................. 16 4.1.3 MARINE CALCULATION ................................................................................................... 16 4.2 TECHNICAL ROOM ................................................................................................................. 17 4.2.1 LOCATION ....................................................................................................................... 17 4.2.2 PROCESS ARRANGMENT ................................................................................................. 18 4.2.3 SIZING ............................................................................................................................. 19 4.3 PROCESS EQUIPMENT ........................................................................................................... 20 4.3.1 ARRANGMENT ................................................................................................................ 20 4.3.2 SEA WATER PUMPS ........................................................................................................ 21 4.3.3 HEAT EXCHANGERS......................................................................................................... 22 4.3.4 DISTRIBUTION PUMPS .................................................................................................... 22 4.4 NETWORK DISTRIBUTION ...................................................................................................... 23 4.5 CONSIDERATIONS FOR CONSTURCTION ............................................................................... 24 4.5.1 SEA WATER PIPELINE CONSTRUCTION AREA ................................................................. 24 4.5.2 MARINE PIPELINE TRENCHING WORKS .......................................................................... 25 4.5.3 TECHNICAL ROOM CONSTRUCTION ............................................................................... 25 5 COST & ECONOMICS ...................................................................................................................... 27 5.1 COST ANALYSIS ASSUMPTIONS ............................................................................................. 27 SWAC Assessment - Pedernales Page 2 of 39 5.1.1 General ........................................................................................................................... 27 5.1.2 UNCERTAINTIES .............................................................................................................. 27 5.1.3 COMPARABLE PROJECTS IN THE DOMINICAN REPUBLIC ............................................... 28 5.2 COST ANALYSIS RESULTS ....................................................................................................... 32 OFFSHORE WORKS (SEAWATER PIPELINE) ........................................................................................ 32 TECHNICAL ROOM – CONSTRUCTION ............................................................................................... 32 PROCESS EQUIPMENT ....................................................................................................................... 32 GLOBAL COSTS & BASIC ECONOMICS................................................................................................ 33 6 COMPLEMENTARY ADVANTAGES.................................................................................................. 34 6.1 GHG SAVINGS ........................................................................................................................ 34 6.2 CLIMATE RESILIENCE.............................................................................................................. 34 6.3 HUMAN DEVELOPMENT ........................................................................................................ 34 6.4 JOBS CREATION...................................................................................................................... 35 6.5 GLOBAL BENEFITS .................................................................................................................. 36 7 LEGAL & PERMITTING .................................................................................................................... 37 8 BUSINESS MODEL .......................................................................................................................... 38 8.1 SUMMARY ................................................................................ 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Bookmark not defined. 8.2 BUSINESS MODEL FOUNDATION ........................................................................................... 39 8.3 BUSINESS MODEL ASSUMPTIONS ......................................................................................... 39 8.4 ANNUALIZED SAVINGS........................................................................................................... 40 SWAC Assessment - Pedernales Page 3 of 39 LIST OF FIGURES Figure 1 – Dominican Republic .............................................................................................................................................. 7 Figure 2 – Master Plan Extract – Cabo Rojo In blue the first phase of the construction project ............................... 7 Figure 3 - Bathymetry chart in front of Pedernales In blue the first phase of the construction project .................... 8 Figure 4 - Temperatures profiles point locations extracted from NOAA Data Catalogue in front of Pedernales..... 9 Figure 5 - Temperatures profiles in front of Pedernales .................................................................................................... 9 Figure 6 - Wave statistical repartition in Carribean Sea ...................................................................................................11 Figure 7 - Hurricanes trajectories around Dominican Republic (1851-2019) Storm Carib - NOAA ......................12 Figure 8 - Pipeline Route – Pedernales ..............................................................................................................................15 Figure 9 - Technical Room Location on Cabo Rojo Project ............................................................................................17 Figure 10 - Technical Room Access and exterior appearance – Tahitian Hospital SWAC ........................................17 Figure 11 - Technical Room Configuration ........................................................................................................................19 Figure 12 -Technical Room Arrangement with 3 Sea Water pumps – HX and 3 Distribution Pumps per Branch ...............................................................................................................................................................................20 Figure 13 - Tahitian SWAC Technical Room - 3D representation - Sea Water Pumping Area .................................21 Figure 14 - Heat Exchanger and Titanium Plate...............................................................................................................22 Figure 15 - Chilled Water Distribution Pumps - Tahiti Hospital SWAC..........................................................................22 Figure 16 - Estimated Distribution NetWork .....................................................................................................................23 Figure 17 - Tahiti Hospital SWAC construction Area........................................................................................................24 Figure 18 - 3 x 350m OD2500mm pipeline travel the Atlantic from Norway to Puerto Catalina project (ETERMAR – Pipelife...................................................................................................................................................................................25 Figure 19 - Technical Room construction - Tahitian Hospital SWAC and example of equivalent construction .....26 Figure 20 - Global Worldwide inflation – 2000 – 2028 .................................................................................................29 ACKNOWLEDGEMENTS This work to produce this SWAC assessment, as well as other work to promote SWAC around the Caribbean was generously supported by PROBLUE, the World Bank’s Blue Economy Program and ESMAP, the Energy Sector Management Assistance Program of the World Bank. It was overseen and coordinated by the World Bank and undertaken by Airaro. SWAC Assessment - Pedernales Page 4 of 39 1 INTRODUCTION 1.1 PURPOSE OF STUDY Pedernales, Dominican Republic, has been chosen as the location for a Sea Water Air Conditioning (SWAC) project after conducting selection studies for SWAC in various Caribbean countries. The selection of Pedernales is strategic due to its future importance as the site of the Cabo Rojo tourism project. Cabo Rojo represents a major Greenfield project with significant future energy needs. As a Greenfield project, there is an opportunity to incorporate innovative and sustainable technologies, such as SWAC, from the early stages of development. Introducing SWAC technology at the early beginning of the Cabo Rojo project is seen as highly appropriate due to its potential to meet the future energy needs of the development in a sustainable and environmentally friendly manner. The purpose of the feasibility study is to assess the technical, economic, environmental, and social viability of implementing SWAC technology in Pedernales. This includes evaluating factors such as resource availability, technical feasibility, cost-effectiveness, and potential benefits to the local community and environment. Overall, the feasibility study aims to provide comprehensive insights and analysis to support decision-making regarding the implementation of SWAC technology in Pedernales, Dominican Republic, particularly in the context of the Cabo Rojo tourism project and its future energy needs. 1.2 METHOD OF STUDY Airaro is utilizing bathymetry data, sea water temperature profiles from NOAA, and technical information from future consumers to pre-design a SWAC (Sea Water Air Conditioning) solution in Pedernales. This approach allows for a detailed understanding of the local conditions and consumer needs, leading to a more precise design and cost estimation of the SWAC installation. The pre-design process and cost estimation entail the following steps: - Pre-design of SWAC Solution: Utilize bathymetry data to understand the underwater topography and determine the optimal location for intake and discharge pipes. - Analyse sea water temperature profiles provided by NOAA to assess the suitability of sea water as a cooling source for the SWAC system. - Use technical information from future consumers to understand the cooling requirements and tailor the SWAC solution accordingly. This includes factors such as cooling capacity, distribution network layout, and technical room specifications. Once the major elements are defined, quantification of the major SWAC components follows, including: - Intake and discharge pipes: Determine the length, diameter, and material requirements based on bathymetry data and technical specifications. - Technical room components: Quantify the equipment and materials needed for the construction of the technical room, including pumps, heat exchangers, and distribution systems. - Distribution network: Estimate the length and specifications of the distribution network based on consumer requirements and site conditions. SWAC Assessment - Pedernales Page 5 of 39 Following quantification, precise costs are calculated, factoring in local specificities like labour costs, material availability, and regulatory requirements: - Comprehensive Cost Estimation: Covering construction materials, equipment procurement, labour, permits, and other relevant expenses. - Contingency Planning: Considering potential contingencies and allowances for unforeseen costs to ensure an accurate estimation. By leveraging bathymetry data, sea water temperature profiles, and technical information from future consumers, Airaro can conduct a thorough pre-design of the SWAC solution in Pedernales and provide precise cost estimations for the installation. This approach ensures that the SWAC system is tailored to local conditions and consumer needs while offering accurate cost projections for informed decision-making. 1.3 EXECUTIVE SUMMARY Pedernales, Dominican Republic, has been strategically selected as the site for a Sea Water Air Conditioning (SWAC) project, aligning with the upcoming Cabo Rojo tourism development. This decision follows meticulous studies across the Caribbean region, emphasizing Pedernales' future significance and synergy with the Cabo Rojo project's energy demands. The feasibility study for the SWAC project in Pedernales employs a methodological approach that integrates comprehensive data sources and technical insights. Bathymetry data, sea water temperature profiles from NOAA, and consumer input inform the pre-design process, facilitating precise cost estimations and tailored solutions. Situated in Pedernales on the southwestern coast of the Dominican Republic, the Cabo Rojo project presents a strategic opportunity for sustainable development. The SWAC study aligns with the Cabo Rojo Master Plan, aiming to enhance energy efficiency and environmental sustainability, in line with regional development objectives. Utilizing bathymetric and temperature profiles, the study evaluates SWAC technology's feasibility, considering intake and discharge locations and system design. Analysis of wave patterns informs resilient marine infrastructure design, optimizing performance and mitigating risks. A case study targeting lots within the Cabo Rojo development area focuses on supplying cooling capacity to designated hotels. Meticulous attention is given to technical aspects, including deep sea water pipeline design and construction considerations, ensuring reliability and sustainability. Cost considerations, uncertainties, and cost estimations are meticulously analysed, comparing aspects between French Polynesia and the Dominican Republic. Legal and permitting requirements, business plans, and annualized savings further inform stakeholders on the project's feasibility and benefits. Overall, the SWAC project in Pedernales embodies a transformative endeavour, poised to enhance regional development, mitigate environmental impact, and contribute to long-term sustainability. Through strategic planning, data-driven methodologies, and collaboration, it represents a significant step towards a more resilient and prosperous future for the region. SWAC Assessment - Pedernales Page 6 of 39 2 SITE DATA 2.1 LOCATION The Cabo Rojo project is situated in Pedernales, located on the southwestern coast of the Dominican Republic Island in the Caribbean. The coordinates of the project site are 17°53'44.20"N latitude and 71°40'1.56"O longitude. This strategic location offers opportunities for sustainable development initiatives such as the implementation of innovative technologies like Sea Water Air Conditioning (SWAC) to meet the region's energy needs while promoting economic growth and environmental stewardship. Figure 1 – Dominican Republic 2.2 LAND DATA In Pedernales, the study will be based on the Cabo Rojo Master Plan, which serves as the foundational framework for development initiatives in the region. The Cabo Rojo Master Plan outlines strategic objectives, infrastructure requirements, and sustainable development goals aimed at optimizing the utilization of resources and enhancing the quality of life for residents and visitors alike. By aligning with the Cabo Rojo Master Plan, the study in Pedernales aims to support the realization of key objectives outlined in the plan, while also incorporating innovative solutions such as Sea Water Air Conditioning (SWAC) to address energy needs and promote environmental sustainability within the region. Figure 2 – Master Plan Extract – Cabo Rojo In blue the first phase of the construction project SWAC Assessment - Pedernales Page 7 of 39 2.3 BATHYMETRIC DATA Figure 3 - Bathymetry chart in front of Pedernales In blue the first phase of the construction project Bathymetric data sources: https://www.ncei.noaa.gov/ - https://www.gebco.net - https://registry.opendata.aws - https://data.shom.fr/ SWAC Assessment - Pedernales Page 8 of 39 2.4 TEMPERATURES PROFILES Temperatures profiles in the vicinity of Pedernales have been extracted from the NOAA Data Catalogue. These temperature profiles provide valuable insights into the thermal characteristics of the sea water in the region, which are essential for evaluating the feasibility and effectiveness of implementing Sea Water Air Conditioning (SWAC) solutions. Figure 4 - Temperatures profiles point locations extracted from NOAA Data Catalogue in front of Pedernales Figure 5 - Temperatures profiles in front of Pedernales SWAC Assessment - Pedernales Page 9 of 39 For the design of the Sea Water Air Conditioning (SWAC) system in Pedernales, we utilize the maximum temperature profile extracted from all available data collected in front of Pedernales. This approach ensures that the SWAC system is designed to effectively manage the highest sea water temperatures observed in the region, thereby maximizing the system's cooling capacity and efficiency under peak conditions. By incorporating the maximum temperature profile into the design process, we can ensure the reliability and performance of the SWAC system to meet the cooling demands of the area while optimizing energy consumption and minimizing environmental impact. 9. depth (m) temp (°C) 0 28,7 50 28,3 100 25,9 150 22,6 200 20,1 250 18 300 16,9 350 15,5 400 14,5 450 12,6 500 11,5 550 10,8 600 9,64 650 9,1 700 8,2 750 7,3 800 6,7 850 6,4 900 5,9 950 5,5 1000 5,2 1050 5 1100 4,9 SWAC Assessment - Pedernales Page 10 of 39 2.5 METOCEAN DATA This analysis of wave and swell patterns is essential for various maritime and coastal engineering applications, including the design and implementation of SWAC systems. By understanding the wave energy characteristics of the region, appropriate measures can be taken to ensure the resilience and durability of coastal structures and installations. In the context of SWAC systems, this information aids in the selection of suitable intake and discharge locations, as well as the design of associated marine infrastructure, to optimize system performance and minimize environmental impact. The Global Wave and Swell Analysis conducted in the Caribbean Sea indicates relatively low swell conditions in front of the south coast of the Dominican Republic. The annual mean wave power in this region ranges between 4 to 6 kW/m, which is notably lower than the maximum of 14 kW/m observed in the middle of the Caribbean Sea. These findings suggest that the south coast of the Dominican Republic experiences moderate wave energy levels compared to other areas within the Caribbean Sea. Figure 6 - Wave energy in Caribbean Sea Figure 6 - Wave statistical repartition in Caribbean Sea SWAC Assessment - Pedernales Page 11 of 39 More precise data indicates that the significant wave height (Hsig) in the south coast of the Dominican Republic typically ranges between 1.5 to 2.5 meters, with a relatively low period (Ts) of 4 to 7 seconds. These conditions are characteristic of windy swells, which generate moderate wave energy and exert reasonable forces on maritime structures. Understanding these wave parameters is crucial for assessing the impact of wave action on maritime structures and coastal infrastructure. The relatively low significant wave height coupled with short wave periods suggests that while wave forces may be reasonable, they are not excessively high. This information can inform the design and engineering of maritime structures, ensuring they are robust enough to withstand the prevailing wave conditions in the region. The hurricane exposure in Pedernales appears to be relatively low, as indicated by historic hurricane trajectories around the Dominican Republic. This assessment is supported by data illustrating that Pedernales has been less frequently impacted by hurricanes compared to other regions of the country. Besides wave and swell analysis, understanding the hurricane exposure of an area is essential for risk assessment and disaster preparedness planning. By analysing historic hurricane trajectories, stakeholders can better assess the likelihood and severity of hurricane impacts in Pedernales and implement appropriate measures to mitigate risks and ensure resilience against extreme weather events. It's important to note that while the hurricane exposure may be relatively low in Pedernales compared to other regions, the potential for hurricanes and tropical storms should still be considered in the planning and design of infrastructure projects, including Sea Water Air Conditioning (SWAC) systems. Proactive measures such as robust structural design, contingency planning, and early warning systems can help minimize the impact of hurricanes on critical infrastructure. Figure 7 - Hurricanes trajectories around Dominican Republic (1851-2019) Storm Carib - NOAA SWAC Assessment - Pedernales Page 12 of 39 Based on historical data indicating that the Pedernales area has been historically impacted by low-energy hurricanes, it is prudent to conduct design stages for marine pipelines and anchoring with consideration of potential impacts from hurricanes of higher intensity, such as a Category 5 hurricane (H5). While the region may have experienced low-energy hurricanes in the past, designing infrastructure, particularly marine pipelines and anchoring systems, to withstand the forces associated with more severe hurricanes provides an added layer of resilience and ensures the safety and longevity of the installations. Designing for a Category 5 hurricane involves accounting for significantly higher wind speeds, storm surge, and wave heights compared to lower category hurricanes. This may include: - Pipeline Design: Selecting materials and construction methods capable of withstanding higher loads and stresses induced by extreme weather conditions. - Anchoring Systems: Utilizing anchoring systems that are designed and engineered to withstand the increased forces exerted by Category 5 hurricanes, including strong winds and turbulent waves. Plus ensuring redundancy and reliability in anchoring systems to minimize the risk of failure during extreme weather events. By designing marine pipelines and anchoring systems to withstand the impacts of a Category 5 hurricane, infrastructure resilience is enhanced, reducing the risk of damage or disruption during severe weather events. This proactive approach aligns with best practices in engineering design and ensures the long-term reliability and functionality of critical infrastructure in the Pedernales area. Last but not least, it’s important to note that SWAC systems in general can offer greater resilience against hurricanes compared to conventional HVAC systems installed on building roofs or exteriors. This is primarily due to the majority of SWAC piping being submerged or housed within building ducts, while equipment is typically located in secure and robust rooms. In contrast, conventional HVAC systems are susceptible to being physically damaged or even destroyed by high winds and flying debris during hurricane events. SWAC Assessment - Pedernales Page 13 of 39 3 CASE STUDIES 3.1 CASE STUDIES Based on the initial findings of the current study, focusing on the Master Plan of Cabo Rojo, and after a meeting between the World Bank SWAC team and the DGAPP, the agency that is in charge of developing Pedernales, we can present a case study only established to supply the first phase of the development process. The only lots concerned are H6 to H13. This configuration suits us perfectly, first because it’s the seashore in the middle of the project, second because, as DGAPP already planned to implement a centralized chilled water distribution networks to supply the cold needed for air conditioning. So we limited our investment perimeter to the marine construction and both the technical room, and the process installation, assuming a sole point of supply for the customer chilled water distribution network. CASE STUDY CONSUMERS N°1 PEDER 25 MW 8 HOTELS 3.2 COOLING CAPACITY & TECHNICAL CHARACTERISTICS Based on the cooling estimations derived from the project master plan, it has been determined that: - The temperature loop is expected to range between 7°C and 12°C. - All hotels under consideration possess identical chiller production capabilities. Furthermore, the freshwater distribution network to deliver the cooling to the 8 hotels is already included in the master plan of DGAPP (the agency that is in charge of developing Pedernales) and therefore left out of the scope of this study. The DGAPP is planning for a district cooling system powered by conventional mechanical chillers. These findings serve as foundational elements for further analysis and planning regarding the implementation of the cooling infrastructure within the Cabo Rojo project. CASE STUDY Number of Cooling Capacity (kWc) Cooling Capacity Rooms (Tons of Cooling) PEDER 25MW 4 700 25 000 7 108 SWAC Assessment - Pedernales Page 14 of 39 4 SWAC TECHNICALS 4.1 DEEP SEA WATER PIPELINE 4.1.1 ESTIMATED ROUTE The final design of the pipeline route and layout in Pedernales is determined not only by bathymetric configuration but also by considerations related to environmental impact and swell impact calculations. These factors play a crucial role in ensuring the integrity and sustainability of the marine infrastructure, particularly in a region susceptible to varying environmental conditions like Pedernales. Environmental impact assessments are conducted to evaluate the potential effects of the pipeline installation on the surrounding marine ecosystem. This includes assessing impacts on marine habitats, biodiversity, water quality, and other ecological factors. The final pipeline route and layout are designed to minimize adverse environmental impacts, such as avoiding sensitive habitats, minimizing disruption to marine life, and implementing mitigation measures to address any potential negative effects. Swell impact calculations are performed to assess the expected wave forces and stresses exerted on the pipeline during different weather conditions, including swell events. Figure 8 - Pipeline Route – Pedernales Integrating environmental impact assessments and swell impact calculations into the final design process allows for a holistic approach to pipeline design that considers both ecological conservation and structural integrity. By addressing these factors comprehensively, the pipeline infrastructure will be designed to minimize environmental harm while ensuring resilience against wave forces and other natural hazards. This approach aligns with best practices in marine engineering and sustainable infrastructure development, contributing to the long-term sustainability of the project. SWAC Assessment - Pedernales Page 15 of 39 4.1.2 SWAC PIPELINE DESIGN The pipeline for the SWAC system is defined by several key technical aspects: - Cooling Capacity Requirement This will determine the required sea water flow rate in cubic meters per hour (m3/h) to meet the cooling demand of the system. - Pipeline Diameter The sea water flow rate will necessitate a dedicated HDPE (High-Density Polyethylene) pipeline with a specific inside diameter to accommodate the flow. - Pipeline Thickness and Temperature Increase The pipeline thickness will influence the temperature increase experienced by the sea water as it flows from the intake to the technical room. This information, along with the desired temperature at the intake and the length of the pipeline, is crucial for pipeline design. - Sea Water Velocity and Head Losses The pipeline thickness will also determine the sea water velocity, flow rate, and head losses along the pipeline. These factors are essential for assessing the hydraulic performance and efficiency of the system. - Electric Power Requirement for Sea Water Pump The head losses calculated above will dictate the electric power needed for the sea water pump to maintain the required flow rate and overcome friction losses along the pipeline. Given the interconnected nature of these calculations, an iterative approach is necessary to ensure accurate and efficient design of the SWAC system. The results of these calculations will be summarized in the following table and are used for further analysis and decision-making. CASE STUDY PEDER 25MW Cooling Capacity (Tons 7 108 of Cooling) Sea Water Flow (m3/h) 4 340 Intake depth (m) -905 Temperature at intake 5.71 (°C) Pipeline length (m) 7 840 OD Diameter (mm) 1 400 SDR 13.6 4.1.3 MARINE CALCULATION Given the variation in wave and current intensity relative to water depth, it's imperative to tailor the weighting of the pipeline accordingly along its course. Additionally, a critical consideration is establishing the maximum allowable weighting for submergence operations. Typically, in regions with depths ranging from 0 to 50 meters, pipelines necessitate extra anchors to withstand cyclonic conditions and require supplementary anchoring within this zone. In areas characterized by low-impact waves such as higher depth, the permitted weighting for submergence operations is typically adequate for deep stabilization. However, additional anchors are indispensable in shallow- water sections to ensure the stability and integrity of the pipeline under varying environmental conditions. SWAC Assessment - Pedernales Page 16 of 39 4.2 TECHNICAL ROOM 4.2.1 LOCATION On the map below, a landing site for the offshore pipeline is proposed (see the red dot). This would be the location of the technical room, in which the pumps and heat exchangers will be placed. The area In BLUE represents the first phase of the construction project, and the perimeter of the cooling demand the SWAC system will supply. Figure 9 - Technical Room Location on Cabo Rojo Project It's important to note that the Technical Room is fully buried, which mitigates its visual impact and contributes to a more aesthetically pleasing environment, a crucial consideration for its integration into a tourism-centric area. This approach ensures that the infrastructure blends seamlessly with the surrounding landscape, enhancing the overall appeal and maintaining the scenic beauty of the tourism destination. Figure 10 - Technical Room Access and exterior appearance – Tahitian Hospital SWAC Figure 10-Technical Room Access and exterior appearance – Tahitian Hospital SWAC SWAC Assessment - Pedernales Page 17 of 39 4.2.2 PROCESS ARRANGMENT The size of the technical room is directly correlated with the equipment it houses. It can be subdivided into three distinct areas to accommodate the necessary equipment: - Sea Water Pumping Area This section houses the equipment related to sea water pumping, including pumps, valves, and associated control systems. The size of this area is determined by the specifications of the pumps and the required operating conditions. - Heat Exchangers Area The heat exchangers area is dedicated to the equipment responsible for exchanging heat between the sea water and the Chilled Water. This includes heat exchangers, and related components. The size of this area is determined by the number and size of the heat exchangers required to meet the cooling demands of the system. - Distribution Pumping Area This area houses the equipment required for distributing the chilled water to the various buildings and facilities connected to the SWAC system. It includes distribution pumps, valves, and control systems. The size of this area is determined by the specifications of the distribution pumps and the layout of the distribution network. By dividing the technical room into these three areas, it becomes easier to plan and optimize the layout to accommodate the necessary equipment while ensuring efficient operation of the SWAC system. SWAC Assessment - Pedernales Page 18 of 39 Figure 11 - Technical Room Configuration The configuration of the Technical Room follows the model of the Toronto Chilled Water Network, with a maximum power capacity for the Heat Exchangers (HX) set at 3MWc – 850 Tons of Cooling. This design choice aligns with the proven efficiency and functionality of the Toronto Chilled Water Network, providing a reliable blueprint for the organization and operation of the Technical Room. By adhering to this configuration, the Technical Room can effectively manage the heat exchange process while ensuring optimal performance and energy efficiency within the SWAC system. 4.2.3 SIZING Based on the process equipment requirements, the overall size needed for the technical room can be calculated. The result can be found in the table below. It's crucial to position the sea water pumping area below sea level to streamline pump priming and lower pump power requirements. By situating the Sea Water Pumping area below sea level, the system leverages gravity to aid pump priming, minimizing air entrapment risks and ensuring smooth pump operation. This setup not only boosts pumping system reliability and performance but also optimizes energy efficiency by reducing pump power demands. Therefore, careful consideration must be given to the design and location of the Sea Water Pumping area to ensure it is strategically positioned below the sea water level, thereby optimizing the overall efficiency and effectiveness of the SWAC system. CASE STUDY PEDER 25 MW Inside Surface (m²) 1 200 Recommended level of -3m BSL the Sea Water Area SWAC Assessment - Pedernales Page 19 of 39 4.3 PROCESS EQUIPMENT 4.3.1 ARRANGMENT The suggested arrangement for the Sea Water Air Conditioning (SWAC) process is as follows: - Sea Water Pumps Three separate lines for sea water pumping are proposed to ensure redundancy and reliability. The nominal cooling capacity is guaranteed by two out of the three lines, providing backup in case of maintenance or operational issues. Additionally, a screener is installed before each pump to prevent debris and impurities from entering the system and damaging the pumps. - Heat Exchangers (HX) Three heat exchangers are employed to facilitate the heat exchange process between the sea water and the refrigerant fluid. Similar to the sea water pumping arrangement, the nominal cooling capacity is guaranteed by two out of the three heat exchangers, ensuring continuous operation and redundancy. - Distribution Pumping Lines Three distribution pumping lines are utilized to distribute the cooled water to the various buildings and facilities connected to the SWAC system. As with the sea water pumping and heat exchangers, the nominal capacity is guaranteed by two out of the three distribution pumping lines to maintain uninterrupted cooling production. By adopting this arrangement, the SWAC system can operate 24/7, providing reliable and continuous cooling production to meet the demands of the project area. The redundancy built into the system ensures resilience against potential equipment failures or maintenance requirements, thereby enhancing overall system reliability and uptime. Figure 12 -Technical Room Arrangement with 3 Sea Water pumps – HX and 3 Distribution Pumps per Branch SWAC Assessment - Pedernales Page 20 of 39 Figure 13 - Tahitian SWAC Technical Room - 3D representation - Sea Water Pumping Area 4.3.2 SEA WATER PUMPS The Sea Water Pumps will be equipped with the following general characteristics to ensure efficient and reliable operation in sea water conditions: - Material: The pump volute will be made of inconel or stainless steel, both of which are corrosion-resistant materials suitable for saltwater use. - Net Positive Suction Head (NPSH): The pumps will be designed to provide an adapted Net Positive Suction Head to meet the requirements of the suction pipeline and ensure optimal pump performance. The pump power calculation model takes into account various factors, such as: - Pipeline Length: The length of the pipeline through which the sea water is transported will influence the power requirements of the pumps. Longer pipelines may require higher power pumps to overcome friction losses and maintain adequate flow rates. - Internal Diameter of Pipeline: The internal diameter of the pipeline will impact the flow velocity and pressure drop of the sea water. Larger diameter pipelines generally require less pump power to achieve the desired flow rates compared to smaller diameter pipelines. - Sea Water Velocity: The velocity at which the sea water flows through the pipeline affects the frictional losses and, consequently, the power requirements of the pumps. Higher velocities may necessitate higher pump power to maintain the desired flow rates. - HDPE Material: The material of the pipeline, in this case HDPE (High-Density Polyethylene), will influence the frictional losses and the overall hydraulic efficiency of the system. Pump power calculations will consider the specific characteristics of HDPE material in determining the power requirements. By considering these factors in the calculation of pump power, the SWAC system can be designed to ensure efficient and reliable operation while meeting the cooling demands of the project.. CASE STUDY PEDER 25MW Cooling Capacity – Tons of 7 108 Cooling Sea Water Flow (m3/h) 4 340 Sea Water Pump Power 320 (kW) SWAC Assessment - Pedernales Page 21 of 39 4.3.3 HEAT EXCHANGERS The Heat Exchangers will be designed with the following technical characteristics to facilitate efficient heat exchange in the SWAC system: - Material: The plates of the heat exchangers will be made of titanium, which is well-suited for sea water applications due to its corrosion resistance and durability. - Flow Configuration: The heat exchangers will operate in a counter-flow exchange configuration, where the sea water and the freshwater flow in opposite directions. This configuration maximizes the temperature difference between the two fluids, enhancing the overall heat transfer efficiency. - Log Mean Temperature Difference (LMTD): The LMTD is a key parameter used in heat exchanger design to quantify the temperature driving force for heat transfer. An LMTD value of 1 indicates that the temperature difference between the inlet and outlet streams of the heat exchanger is relatively small. By incorporating these technical characteristics, the heat exchangers will effectively facilitate the transfer of heat between the sea water and the freshwater of the distribution network, ensuring efficient cooling production in the SWAC system. CASE STUDY PEDER 25MW Number of HX-850ToC for 20 Nominal Cooling Capacity Figure 14 - Heat Exchanger and Titanium Plate 4.3.4 DISTRIBUTION PUMPS As mentioned in Chapter 3.2, the chilled-water distribution network is outside the scope of this study. However, to illustrate a potential distribution pump arrangement for the Pedernales project, a picture of the Tahitian hospital pumps is added, Figure 15 - Chilled Water Distribution Pumps - Tahiti Hospital SWAC SWAC Assessment - Pedernales Page 22 of 39 4.4 NETWORK DISTRIBUTION As mentioned in Chapter 3.2, the chilled-water distribution network is excluded from the SWAC project scope. DGAPP, the overseeing agency for Pedernales' development, has strategically incorporated a district cooling system into its plans to cater to the cooling needs of the numerous hotels. Hence, the distribution network is already part of the Pedernales master plan. Figure 16 - Estimated Distribution Network In BLUE the perimeter considered in this study. SWAC Assessment - Pedernales Page 23 of 39 4.5 CONSIDERATIONS FOR CONSTURCTION 4.5.1 SEA WATER PIPELINE CONSTRUCTION AREA Figure 17 - Tahiti Hospital SWAC construction Area For the construction of the pipeline, a dedicated area with specific characteristics is essential to ensure successful installation and operation. Here are some considerations for selecting an appropriate construction area: - Sufficient Surface Area: The construction area should provide enough surface area to accommodate several kilometers of pipeline segments, along with space for equipment, materials, and personnel. - Protection from Ocean Conditions: The construction area must be sheltered and protected from ocean conditions, including waves, currents, and other environmental factors that could impact construction activities and the integrity of the pipeline. - Distance from Installation Site: While the construction area should be reasonably close to the installation site to minimize transportation costs and logistical challenges, it should also be at a safe distance to avoid interference with ongoing operations and ensure safety during construction. - Accessibility: The construction area should be easily accessible by land and water, facilitating transportation of materials and equipment to and from the site. - Transportation of Pipeline: Considering the potential need to transport the HDPE pipeline over long distances, it's important to select a construction area that allows for easy access to ports or loading facilities for transportation via sea routes. This ensures that the pipeline can be transported efficiently and safely, even over hundreds of kilometers if necessary. - Supply Chain Considerations: Drawing from experiences in similar projects in the Dominican Republic, where HDPE pipelines were supplied from USA and Norway, it's essential to establish a reliable supply chain for the procurement and transportation of materials, including the HDPE pipeline, to the construction area. By carefully selecting a construction area with these characteristics, you can ensure the successful construction and installation of the pipeline for the SWAC system, ultimately contributing to the efficiency and effectiveness of the project. SWAC Assessment - Pedernales Page 24 of 39 Figure 18 - 3 x 350m OD2500mm pipeline travel the Atlantic from Norway to Puerto Catalina project (ETERMAR – Pipelife 4.5.2 MARINE PIPELINE TRENCHING WORKS For marine trenching works associated with the installation of the SWAC system's pipeline, several classical solutions can be employed, depending on the soil conditions encountered: - Sheet Piles Preparation and Excavation: In sandy and soft soil conditions, sheet piles can be used to create a barrier around the area where the trench will be excavated. These sheet piles provide support and prevent the sides of the trench from collapsing during excavation. Excavation can then be carried out using traditional methods such as dredging or hydraulic excavation equipment. - Microtunneling: In hard soil conditions or when precise alignment is required, microtunneling can be employed. This method involves using a microtunnel boring machine (MTBM) to excavate the trench while simultaneously installing the pipeline. Microtunneling is particularly suitable for hard soils where traditional excavation methods may be challenging or impractical. These classical solutions for marine trenching have been widely used in various infrastructure projects and offer reliable and effective means of excavating trenches for pipeline installation in different soil conditions. By selecting the most appropriate method based on the specific soil conditions and project requirements, the marine trenching works can be carried out efficiently and safely, ensuring the successful installation of the SWAC system's pipeline. 4.5.3 TECHNICAL ROOM CONSTRUCTION The most technical point of the Technical Room construction is the sheet pile preparation. Since the seawater pumping-floor is below sea-level, a sheet pile preparation is necessary for the excavation. Sheet pile preparation involves driving interlocking steel or concrete sheet piles into the ground along the perimeter of the excavation area. These sheet piles create a watertight barrier that prevents soil or water from entering the excavation site, allowing for safe and efficient construction activities. In the case of the Technical Room construction, the sheet pile preparation serves multiple purposes: - Water Retention: The sheet piles prevent seawater from seeping into the excavation area, allowing for dry conditions during construction. - Stability: By providing lateral support, the sheet piles stabilize the surrounding soil and prevent cave-ins or collapses during excavation. - Workable Environment: Creating a dry and stable environment within the excavation area facilitates construction activities and ensures the safety of workers and equipment. - Foundation Support: Additionally, the sheet piles may serve as temporary or permanent foundation elements for the Technical Room structure, depending on the design requirements. SWAC Assessment - Pedernales Page 25 of 39 Given the critical role of sheet pile preparation in the construction of the Technical Room, careful planning, design, and execution are essential to ensure the success and safety of the construction project. Professional engineering expertise and adherence to best practices in sheet pile installation are paramount to achieving a robust and reliable foundation for the Technical Room structure. . Figure 19 - Technical Room construction - Tahitian Hospital SWAC and example of equivalent construction After completing the initial stage of works, which includes the sheet pile preparation and excavation for the Technical Room construction, the subsequent stage typically involves the more conventional concrete construction process. This phase involves: - Foundation Construction: Once the excavation is complete and the area is properly prepared, the foundation for the Technical Room is constructed. This may involve pouring concrete footings or slabs, depending on the specific design requirements and soil conditions. - Superstructure Construction: Following the completion of the foundation, the superstructure of the Technical Room is constructed using concrete or other suitable materials. This may include walls, columns, beams, and roof elements, all of which are assembled according to the architectural and structural plans. - Finishing Works: After the structural elements are in place, finishing works are carried out to complete the construction of the Technical Room. This may involve installing doors, windows, flooring, and interior finishes, as well as any necessary mechanical, electrical, and plumbing systems. - Testing and Commissioning: Once the construction is complete, the Technical Room undergoes testing and commissioning to ensure that all systems are functioning correctly and meet the required performance standards. Overall, the concrete construction phase represents the culmination of the Technical Room construction process, transforming the initial groundwork and excavation into a fully functional and operational facility ready to support the SWAC system's cooling production. SWAC Assessment - Pedernales Page 26 of 39 5 COST & ECONOMICS 5.1 COST ANALYSIS ASSUMPTIONS 5.1.1 General Drawing upon their extensive experience and expertise in constructing similar SWAC projects in French Polynesia, Airaro employed their insights to calculate the costs for the prospective SWAC project in Grenada. While some costs may align with those incurred in French Polynesia, it is reasonable to expect savings in specific areas of the project, notably in the construction of the Technical Room and Distribution Networks. Below is a summary detailing how these adjustments reflect in the final cost estimates. - Technical Room Construction: Given that costs in French Polynesia are in the upper range for infrastructure projects, it's plausible to expect relatively lower costs for the construction of the Technical Room in the SWAC project. Factors such as labour costs, materials availability, and construction regulations can influence these costs, and local conditions may contribute to more competitive pricing. - Distribution Networks: Similarly, the costs associated with the distribution networks for chilled water delivery may be lower compared to similar projects in French Polynesia. These networks involve laying pipelines underground, which can be relatively straightforward compared to above-ground structures. Additionally, factors such as labour costs and material availability may contribute to lower overall costs. Regarding other costs such as marine-related works and process-related components, it's worth considering potential cost-saving opportunities compared to the construction costs in French Polynesia as well: - Marine Part Costs: The proximity of petroleum infrastructures and the USA could contribute to more competitive pricing. Access to nearby resources and expertise may help mitigate some of the higher construction costs typically associated with marine works. - Process-related Costs: While certain components of the SWAC process may involve specialized equipment or technologies, exploring options for sourcing materials and expertise from nearby regions could help optimize costs. Additionally, leveraging economies of scale and partnerships with experienced international suppliers may contribute to more competitive pricing for process-related components. In summary, while some costs in the SWAC project may be lower compared to similar projects in French Polynesia, particularly in the Technical Room Construction and Distribution Networks, exploring cost-saving opportunities and leveraging regional advantages can help optimize overall project costs. 5.1.2 UNCERTAINTIES Based on the information provided, it's clear that accurate technical design parameters have been established, including pipeline specifications, stabilization equipment requirements, extra anchors, and trenching length. However, due to the inherent uncertainty associated with construction works and the cost considerations specific to projects in French Polynesia, it's prudent to account for a margin of error in the CAPEX estimations. Given the "worst case scenario" regarding the cost of construction in French Polynesia and the uncertainties associated with construction works, a conservative approach is warranted. Therefore, a +/- 20% margin of error on CAPEX estimations is reasonable at this stage of the feasibility study. SWAC Assessment - Pedernales Page 27 of 39 This margin of error allows for flexibility in the cost estimations to account for potential variations in construction costs, unexpected challenges during the construction phase, and other factors that may impact project expenses. By incorporating this level of uncertainty into the CAPEX estimations, the feasibility study can provide a more realistic assessment of the project's financial viability and help stakeholders make informed decisions regarding project planning and investment. 5.1.3 COMPARABLE PROJECTS IN THE DOMINICAN REPUBLIC Studying similar projects in the Dominican Republic can provide valuable insights into the cost implications of marine works for the SWAC installation. Here are some key considerations and potential cost impacts based on the marine part of similar projects: - Site-specific Factors: Each project site may have unique characteristics that can influence construction costs. Factors such as water depth, seabed conditions, proximity to shore, and environmental regulations can impact the complexity and cost of marine works. - Local Labor and Material Costs: The availability and cost of labor and materials in the Dominican Republic may differ from other regions, including French Polynesia. Understanding local market conditions for marine construction services, equipment rental, and materials procurement is essential for accurate cost estimations. - Transportation and Logistics: The logistics of transporting equipment, materials, and personnel to and from the project site can affect overall project costs. Access to nearby ports, transportation infrastructure, and customs regulations may impact transportation costs and project timelines. - Regulatory and Permitting Requirements: Compliance with local regulations and obtaining necessary permits for marine construction activities can add to project costs. Costs associated with environmental assessments, permitting fees, and regulatory compliance should be factored into the overall project budget. - Risk Management: Assessing and mitigating risks associated with marine works, such as adverse weather conditions, equipment failure, and unexpected geological challenges, is critical for managing project costs. Contingency planning and risk mitigation strategies should be incorporated into the project budget to account for potential cost overruns. - Contractual Arrangements: The choice of contractual arrangements, such as lump-sum contracts, cost- reimbursable contracts, or design-build contracts, can impact project costs and risk allocation. Understanding the advantages and disadvantages of different contract types in the context of marine construction projects is important for cost management. By studying similar projects in the Dominican Republic and considering these factors, stakeholders can gain valuable insights into the cost implications of marine works for the SWAC installation project. This information can inform cost estimations, risk assessments, and decision-making processes to ensure the successful execution of the project within budgetary constraints. Offshore works / Marine part For the Marine part, we found the following comparable projects: SWAC Assessment - Pedernales Page 28 of 39 CASE STUDY Year of Technical Cost (MUSD) Information construction Characteristics Puerto Plata Power 1998 2x1100m – 1.35m 5.2 Pipeline supply Plant Pipeline diameter HDPE from US 240m buried on Seafloor Puerto Plata - 2018 3400m – 1.1m 17 Pipeline Supply Coraaplata Diameter from Norway 3100m Subsea – 300m Trenched Punta Catalina 2019-2020 1050m – 2500mm UNKNOW Pipeline Supply from Norway Figure 20 - Global Worldwide inflation – 2000 – 2028 CASE STUDY Year of Cost Cost + Inflation 2023 Cost Evaluation with Ratio construction (MUSD) (MUSD) French Polynesians Costs (MUSD) Puerto Plata 1998 5.2 13.98 24 +58% Power Plant Pipeline Puerto Plata - 2018 17 22.899 35.8 +37% Coraaplata Punta Catalina 2019-2020 UNKNOW UNKNOW Based on the factors you've outlined, it's clear that there are significant cost discrepancies that need to be accounted for in the estimations. Considering these factors, estimating the extra costs associated with working in French Polynesia as 35% higher than in the Dominican Republic is a reasonable approach. Here's how the identified factors contribute to the higher costs in French Polynesia compared to the Dominican Republic: - Duty Taxes: The significantly higher duty taxes in French Polynesia, especially for importing materials like HDPE pipelines, can substantially increase project costs. With duty taxes in French Polynesia being over 90%, compared to a maximum of 40% in the Dominican Republic, this factor alone can significantly impact the overall project budget. SWAC Assessment - Pedernales Page 29 of 39 - Average Salary: The much higher average salary in French Polynesia, which is approximately 5 times higher than in the Dominican Republic, contributes to higher labor costs for construction and marine works. This significant difference in labor costs directly influences the overall project costs, especially for labor-intensive activities such as marine construction. - Remoteness: The remoteness of French Polynesia contributes to the complexity and expense of operations, including transportation of equipment, materials, and personnel to and from the project site. Remote locations often entail additional logistical challenges and higher transportation costs, further driving up project expenses. Considering these factors, estimating the extra costs for working in French Polynesia as 35% higher than in the Dominican Republic is a prudent approach to account for the significant cost differentials between the two locations. This estimation allows for a more accurate assessment of the overall project budget and helps mitigate the financial risks associated with working in a high-cost environment like French Polynesia. Terrestrial infrastructures Theses different projects are found to compare the cost of the Terrestrial Part (Source INAPA projects and IDB) CASE STUDY Year of Technical Characteristics Flow Cost (MUSD) construction Puerto Plata - 2018 7000m network + 14 pumping units + 3 17 Coraaplata large pumping unit Puerto Plata 2023 20 000m 2.1 Coraaplata Acueducto Sector 2022 1700m – Only supply 156l/s 0.8 Madre Vieja Sur Acueducto Villa 2022 4365m 20inchs Steel 267l/s 1.8 Altagracia Acueducto El 2020 3300m supply 20inchs 1.2 Carril-La Pared Ampliación 2020 3 forages + 3600m 12” + 2 reservoirs + 372l/s 6.5 Acueducto pumps Múltiple Hato Dama Pumping & 2022-2023 Pumping (150kW) & Well Construction 360m3/h 0.8 Technical Room - Villa Altagracia Caucasian-type 2022-2023 Caucasian-type dam, a sand trap and the 1.6 dam - Villa adduction line in Ø=24" steel pipe, Altagracia CASE Year of Technical Characteristics Cost (MUSD) Cost Evaluation from STUDY construction French Polynesian costs Puerto Plata - 2018 7000m network + 14 pumping 17 Coraaplata units + 3 large pumping unit Puerto Plata 2023 20 000m 2.1 Coraaplata Acueducto 2022 1700m – Only supply 0.8 1.05 Sector Madre Vieja Sur Acueducto Villa 2022 4365m 20inchs Steel 1.8 10 Altagracia SWAC Assessment - Pedernales Page 30 of 39 Acueducto El 2020 3300m supply 20inchs 1.2 1.5 Carril-La Pared Ampliación 2020 3 forages + 3600m 12” + 2 6.5 13.2 Acueducto reservoirs + pumps Múltiple Hato Dama Pumping & 2022-2023 Pumping (150kW) & Well 0.8 Technical Room Construction - Villa Altagracia Caucasian-type 2022-2023 Caucasian-type dam, a sand trap 1.6 dam - Villa and the adduction line in Ø=24" Altagracia steel pipe, CoraaPlata 2023 Pump Motor 44kW 5000 USD Cost Comparison: Makai & ThermoSAG Studies – Puerto Plata CASE STUDY TERMOSAG MAKAI RATIO Pump Station 11 928 20 260 1.69 Distribution 71 066 168 400 2.36 Networks Information obtained from these previous projects, confirm the assumption of lower cost for: - Technical Rooms & Pumping Station : FP costs 30% higher than Dominican Republic - Distribution Network : FP costs 50% higher than Dominican Republic SWAC Assessment - Pedernales Page 31 of 39 5.2 COST ANALYSIS RESULTS OFFSHORE WORKS (SEAWATER PIPELINE) USD Studies and Site preparation 1 450 893 Installation and site folding 2 031 250 Main nautical means 2 031 250 Supplies HDPE 12 282 679 Concrete ballast, steal and accessories 4 700 893 Assembly HDPE 5 005 000 Concrete ballast, steal and accessories 2 611 607 opening of the trench On land 290 179 At sea 4 352 679 Moorings anchoring piles 3 482 143 block anchor 5 223 214 trench outlet anchor 290 179 Submergence operation of the suction pipe 2 611 607 Submergence operation of the discharge pipe 1 160 714 Commissionning 435 268 47 959 554 TECHNICAL ROOM – CONSTRUCTION USD General Price 1 209 175 prep work 2 324 152 Concrete 2 464 688 Miscellaneous 440 672 6 438 687 PROCESS EQUIPMENT USD PREP WORK 557 170 HYDRAULIC 5 312 248 Heat Exchanger 1 551 457 Pumps 858 442 Sea Water Distribution Pipes 2 000 100 Thermal protection 745 999 SWAC Assessment - Pedernales Page 32 of 39 Miscellaneous 156 250 ELECTRICAL CABINET 572 884 CONTROLS and COMMAND 74 483 CENTRALIZED TECHNICAL MANAGEMENT 61 836 TECNICAL EQUIPMENT 242 513 6 821 133 GLOBAL COSTS & BASIC ECONOMICS USD Project Management 2 448 775 Survey (Bathymetry) 2 000 000 Design Studies 4 285 356 Construction Costs Marine Part 47 959 554 Technical Room Construction 6 438 687 Process 6 821 133 TOTAL COSTS 69 953 505 SWAC Assessment - Pedernales Page 33 of 39 6 COMPLEMENTARY ADVANTAGES 6.1 GHG SAVINGS For Dominican Republic, the GHG per kWh is determined as: - 0.641741728 kgCO2/kWh On PEDER 25 MW project , a SWAC system will avoid : - 23 768 TCO2 /Yr - 713 046 TCO2 for a 30 yrs exploitation In addition, with the elimination of mechanical chillers, we avoid: - 0.95 Tons of refrigerant / Yr - 2 000 TCO2 /Yr - 60 000 TCO2 for a 30 yrs exploitation - 10 000 T TCO2 avoided at decommissioning Globally, the PEDER 25MW project will avoid 25 000 TCO2 each Year. 6.2 CLIMATE RESILIENCE In an era of human-induced global warming, largely driven by fossil fuel consumption, SWAC systems offer a resilient solution to climate challenges. Unlike traditional air conditioning systems that rely on these harmful fossil fuels, SWAC cooling is largely independent from the fluctuating fossil fuel markets. This stability ensures a predictable price for cooling services, a crucial commodity in an increasingly warming world. Moreover, SWAC systems demonstrate resilience against extreme weather events such as hurricanes. By harnessing the cooling power of the ocean, SWAC systems are inherently resistant to disruptions caused by severe storms. This resilience enhances the reliability of cooling services, crucial for maintaining comfort and safety in hospitality and other sectors, even in the face of climate-related challenges. In essence, SWAC systems not only mitigate the environmental impact of fossil fuel consumption but also offer a climate-resilient solution for sustainable cooling, making them a vital asset in the fight against climate change. 6.3 HUMAN DEVELOPMENT Recognizing the potential indirect benefits that SWAC installations can bring to human development, particularly in the hospitality sector, is crucial. Here are some key considerations: - Improved Working Conditions for Staff: SWAC enables the cooling of additional areas such as staff kitchens at minimal extra cost. Examples from institutions like the Tahiti hospital and the Tetiaroa hotel demonstrate how staff accommodations and working environments can significantly benefit from SWAC installations. Air-conditioned accommodations and improved air conditioning in hospital laboratories contribute to better working conditions for employees. - Health and Well-being: Enhanced air conditioning and climate control provided by SWAC systems contribute to improved indoor air quality, positively impacting the health and well-being of hotel staff and other employees. This can lead to increased comfort, productivity, and overall job satisfaction. - Productivity and Efficiency: SWAC Assessment - Pedernales Page 34 of 39 Comfortable working environments created by SWAC systems can positively influence employee productivity and efficiency. Maintaining optimal indoor temperatures and humidity levels can help reduce fatigue and stress, resulting in improved performance in their respective roles. - Training and Skill Development: SWAC installations may also indirectly contribute to human development by providing opportunities for training and skill development in the operation and maintenance of these systems. This can lead to the acquisition of new skills and knowledge, enhancing the employability and professional growth of individuals working in the hospitality sector. - Benefit to Other Sectors: SWAC cooling can also be utilized to enhance local agriculture, including cold greenhouses, aquaculture, and freshwater production through desalination. These benefits the local community, especially considering the challenges posed by global warming (heat, droughts, etc.). Additionally, the products could be directly used in the hospitality industry, aiding in meeting sustainable development goals. While quantifying these indirect benefits may be challenging and may require complex analytical approaches, acknowledging their existence and potential impacts on human development is vital. Incorporating qualitative assessments, feedback from employees, and case studies from similar installations can provide valuable insights into the human development aspects of SWAC projects in hotel locations. 6.4 JOB CREATION During the construction phase of the SWAC project, several jobs are created across various stages and components of the project. It's important to consider both direct and indirect job creation, as well as any net effects on employment due to the displacement of jobs related to conventional air conditioning systems. Here's a breakdown of the jobs created during construction: Design and Management: 25 jobs are created for design and project management activities. Marine Part: Construction: 60 jobs are created for marine construction activities. On-site preparation (diving jobs): 40 jobs are created for diving and underwater preparation work. Installation: 80 jobs are created for the installation of marine components. Technical Room Construction (Concrete): 40 jobs are created for the construction of technical rooms using concrete. Process: 30 jobs are created for process-related activities. Distribution Network: 75 jobs are created for the construction of the distribution network. In total, during the construction phase, the SWAC project creates 270 – 300 jobs across various stages and components. It's also important to consider the potential displacement of jobs related to conventional air conditioning systems during the operation phase of the SWAC project. While SWAC systems may require fewer ongoing maintenance and operation jobs compared to traditional air conditioning systems, the net impact on overall employment would need to account for any job losses in the conventional air conditioning sector. SWAC Assessment - Pedernales Page 35 of 39 During the operation phase, the number of ongoing jobs created would depend on factors such as the size of the SWAC system, the complexity of maintenance requirements, and the level of automation in operation. Typically, SWAC systems require ongoing monitoring, maintenance, and operation by a smaller but high-level skills workforce compared to traditional air conditioning systems. 6.5 GLOBAL BENEFITS Integrating information on the social, environmental, and climate benefits of SWAC (Sea Water Air Conditioning) systems alongside economic indicators can provide a holistic view of the project's impact and assist investors in selecting the preferred scenario. Here's how you can emphasize these benefits within each category: Social Benefits: - Enhanced Working Conditions: SWAC systems improve indoor air quality and climate control, enhancing working conditions for employees in hotels and other facilities. - Health Benefits: Improved indoor air quality fosters the health and well-being of occupants, reducing the risk of respiratory issues and allergies. - Job Creation: During both construction and operation, SWAC projects generate employment opportunities across various sectors, contributing to local economic growth and job creation. - Cheaper cooling, independent of the merits of the fossil fuel market, results in an economic advantage over the competition and results in a predictable, stable price. Environmental Benefits: - Reduced Carbon Emissions: SWAC systems lessen reliance on conventional air conditioning systems powered by fossil fuels, resulting in lower carbon emissions and mitigating climate change impacts. - Energy Efficiency: Utilizing renewable energy sources like seawater or deep lake water for cooling, SWAC systems achieve higher energy efficiency and reduced overall energy consumption. - Reduced Water Consumption: SWAC systems significantly decrease water usage compared to conventional chillers. - Minimal Noise and Heat Pollution: Unlike conventional chillers, SWAC systems produce no noise or heat pollution, enhancing environmental quality. - Elimination of Harmful Refrigerants: SWAC systems eliminate the need for harmful refrigerants, contributing to a healthier environment. - Coral Restoration/Sanctuaries: The discharge water from SWAC systems can be utilized for coral restoration or sanctuaries, benefiting marine ecosystems and biodiversity conservation efforts. Climate Benefits: - Climate Resilience: as mentioned, SWAC systems bolster climate resilience by curbing greenhouse gas emissions and promoting sustainable development practices. Making the SWAC user independent of the fossil fuel markets. - Adaptation to Climate Change: Offering a sustainable cooling solution, SWAC systems are less vulnerable to climate change impacts than traditional cooling systems reliant on finite resources. By underscoring these social, environmental, and climate benefits alongside economic indicators, investors can make more informed decisions that prioritize sustainability and long-term value creation. Furnishing comprehensive information on the multifaceted benefits of SWAC systems empowers investors to prioritize sustainability and long-term value creation in their investment strategies. SWAC Assessment - Pedernales Page 36 of 39 7 LEGAL & PERMITTING This Chapter provides an overview of the administrative procedures necessary for the implementation of an energy and infrastructures project in Pedernales, Dominican Republic. It should be noted that these procedures may be subject to changes depending on local regulations and project specifics. For energy related projects 1. No Objection to Land Use (City Hall): Before commencing any construction activities, it is essential to obtain a "No Objection to Land Use" certification from the City Hall of Pedernales. This certification confirms that the proposed land use for the project is in compliance with local zoning regulations and land use plans. 2. Preliminary Project No Objection Certification (City Hall): Additionally, a "Preliminary Project No Objection Certification" must be obtained from the City Hall. This certification signifies that the proposed project aligns with the urban development plans of Pedernales and has no objections from the local authorities regarding its initial design and concept. 3. Environmental Authorizations: Environmental authorizations are mandatory for energy and infrastructure projects in the Dominican Republic, especially those with potential environmental impacts. These authorizations are typically obtained from the Ministry of Environment and Natural Resources (MARENA) after thorough environmental impact assessments and compliance with environmental regulations. 4. Provisional Authorization for Commissioning of Renewable Energy Electrical Works (SIE): For renewable energy projects, particularly electrical works, a "Provisional Authorization for Commissioning" must be secured from the Superintendence of Electricity (SIE). This authorization allows for the provisional commissioning of renewable energy electrical installations, ensuring compliance with technical standards and safety regulations. 5. Provisional Concession (CNE): Finally, a "Provisional Concession" is required from the National Energy Commission (CNE) for energy-related projects, granting temporary rights or concessions for the development, operation, and maintenance of energy infrastructure in Pedernales. This concession ensures regulatory compliance and legal authorization for the project's operations within the energy sector. For Industrial projects Approvals from the Ministry of Industry and Commerce, the Ministry of the Environment (MIMARENA), the corresponding Water and Sewer corporations and the Electricity Company (EDES) The process allows for the processing of requests for classification of investment projects by companies intending to establish themselves in the special border development zone created by Law 12-21. This zone encompasses the provinces of Independencia, Bahoruco, Elías Piña, Pedernales, Santiago Rodríguez, Montecristi, and Dajabón. Companies investing in this area may benefit from tax incentives and other advantages aimed at promoting economic development and investment in the border regions. SWAC Assessment - Pedernales Page 37 of 39 8 BUSINESS MODEL 8.1 PARAMETERS AND ASSUMPTIONS Inflation 3,0% CAPEX SWAC CAPEX Infrastructure (USD) 61 219 374 Assistance for project management (USD) 4 448 775 Project management (USD) 4 285 356 Finance hypothesis Grant & subsidies French Government 0% Grant & subsidies Not French Government 0% Tax incentives 0% WACC 10% Tenor 12 years Repayment schedule Mortage Lifetime 15 years SWAC system should run 20+ years which would much increase SWAC savings vs 15 year lifetime assumption This analysis We present one scenario for the economics models, following direct discussions between the World Bank SWAC team and DGAPP, the overseeing agency for the Pedernales' development. From these discussions, the following technical assumptions are made: - Only the first phase of the construction project, the lots are from H6 to H13, are taken into account - 4 700 rooms will be built on these lots - 5 KWc or 0.426 Kg of cooling per room - This yields 25 MWc, or 7 108 tons of cooling for this phase - Temperature loop: 7-12°C Power installed vs. maximum power use In tropical regions, it's typical to install 50% more cooling power than the actual consumption requirement. For example, if the hotel consumes 3000 KW of cooling, it's reasonable to assume that a 4500 KW cooling capacity would have been installed, as indicated in our CAPEX for chillers. Coefficient Of Performance (COP) for Chillers Over time, conventional chillers experience a decline in performance. While a 3.2 COP (for 1W electric, the chiller produces 3.2 W of cooling) can be achieved in the first five years of operation, this reduces to 2.72 between the 5th and the 15th year and further to 2.24 from the 16th to the 20th year of operation. Price of Electricity The price of electricity is an important factor in determining the cost-competitiveness of a SWAC system. The Pedernales hotels are still under development so no firm prices can yet be determined, It is also unclear what the ultimate sources of electricity will be for the Pedernales hotels. For purposes of this analysis a power price (incl any capacity and demand charges) of USD 0.16/kWh has been used, SWAC Assessment - Pedernales Page 38 of 39 Capacity Factor The financial analysis assumes 5,000 hrs/yr operation of the cooling system to meet the needs of the hotels, or 57% capacity factor over the year, Cooling capacity factors can be higher in humid conditions such as the Caribbean. Lifetime expectation To calculate SWAC all-in cost vs conventional chillers, the financial analysis looked at a 15-year time period, However, this is a conservative assumption as SWAC systems operating around the world have shown much longer lifespans and our models assume replacement of the only SWAC moving part – seawater pump – every six years. A longer lifespan would greatly increase SWAC’s financial advantage over conventional mechanical chillers 8.2 ANNUALIZED SAVINGS Based on the estimated cost figures for the SWAC system put forward in this report and the financial assumptions related above, an analysis was done to compare the overall cost of SWAC vs conventional mechanical chillers. This analysis found that SWAC is about 30% less costly than mechanical chillers with an overall reduction in cost over 15 years of more than $60 million. Furthermore, the costs relating to a SWAC system are much less volatile and subject to changes compared to the costs related to mechanical chillers primarily that of high electricity costs. Average annual reduction in overall costs: 29.2% Savings over 15 years: USD 63.5 mn SWAC Assessment - Pedernales Page 39 of 39