The true value of water: A case-study in manufacturing process water-management

The criticality of water-management and along with it, the necessity to analyse the associated data is becoming increasingly more apparent. One of the main consumers of water worldwide is industry, with specific sectors dominating the profile in different regions. The true value of the water utilised encompasses all the costs incurred including extraction, treatment, pumping, storage, purification and disposal. Knowledge of the costs incurred allows suitable management. However the true cost or true value of the water being used is not known. In order to address this and improve environmental systems, a novel framework for establishing the true value of water was developed and its application to a specific water system in a case-study manufacturing facility is articulated in this paper. The framework may also be similarly applied to other water life-cycle stages and indeed to other water systems within the facility. A Simulink model was created and monthly data over a three year period was analysed. It was determined that the true value of the deionised water was, on average, €13.20/m³. The Value Added Factor relevant to this system is 14.05, originating from a raw water supply cost of €0.94/m³. The total true expenditure on deionised water was €26,025 whereas the perceived expenditure was €1853. The primary constituent components of the true value were system maintenance (30%), equipment depreciation (19%) and energy consumption (18%). The methodology may be applied to other services and other industries thus providing typical value-added factors for a range of systems and this approach could then act as a tool for educating consumers and also assisting with the transition to more sustainable practices. Scenario analysis may be performed in order to evaluate and provide justification for proposed modifications, thus enabling benefits to water and energy consumption, waste reduction and also operational efficiencies. The results may also be used to contribute to water foot-printing, system/regulation compliance and facility benchmarking.