Capital cost estimation of RO plants: GCC countries versus southern Europe

• Published in: Desalination Vol. 347; pp. 103 - 111
• Main Authors: Loutatidou, Savvina, Chalermthai, Bushra, Marpu, Prashanth R., Arafat, Hassan A.
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.08.2014; Elsevier
• Subjects: Applied sciences; Assessments; Awards; Brackish water desalination; Capital cost; Chemical engineering; Construction contracts; Desalination; Drinking water and swimming-pool water. Desalination; EPC contract; Exact sciences and technology; Gulf Cooperation Council; Mathematical models; Membrane separation (reverse osmosis, dialysis...); Modeling; Natural water pollution; Pollution; Regression; Reverse osmosis; Sea water; Seawaters, estuaries; Water treatment and pollution; ANE, Europe; Gulf Cooperation Council; Reverse osmosis; Modeling; EPC contract; Capital cost; Correlation; Desalination plant; Linear regression; Brackish water; Membrane separation; Correlation analysis; Cost estimation; Seawater
• ISSN: 0011-9164; 1873-4464
• DOI: 10.1016/j.desal.2014.05.033

The installation of reverse osmosis (RO) desalination plants has been on the rise throughout the world. Thus, the estimation of their capital cost (CAPEX) is of major importance for governments, potential investors and consulting engineers of the industry. In this paper, parameters potentially affecting the direct capital costs of brackish water RO (BWRO) and seawater RO (SWRO) desalination plants, delivered through Engineering, Procurement & Construction (EPC) contracts, were assessed. The assessment was conducted based on cost data from 950 RO desalination plants contracted in the Gulf Cooperation Council (GCC) countries and in five southern European countries. The parameters assessed include plant capacity, location, award year, feed salinity, and the cumulative installed capacity within a region. Our results showed that plant capacity has the strongest correlation with the EPC cost. Plant type (SWRO or BWRO), plant award year and the region of the RO plant were also found to be statistically important. By utilizing multiple linear regression, a model was also developed to estimate the direct CAPEX (EPC cost) of RO desalination plants to be located either in the GCC countries or southern Europe, which was then verified using the k-fold test. •Parameters affecting the direct capital costs of BWRO and SWRO plants were assessed.•Plants delivered through EPC contracts were considered.•Assessment was based on cost data from 950 RO plants in the GCC and southern Europe.•Plant capacity, type, award year, and region were found to affect RO CAPEX cost.•A model was also developed and verified for RO CAPEX estimation.