September 28, 2017 Dr. Peter S. Fiske Director Water-Energy Resilience Institute Lawrence Berkeley National Laboratory 1 Cyclotron Road Mailstop 74R316C Berkeley, CA 94720-8099 Office: 074-0314 M: (415) 309-0336 O: (510) 486-7474 And by Email: pfiske@lbl.gov RE: National Alliance for Water Innovation Support for Clean Water Hub Application Dear Peter, ( Poseidon ) is pleased to provide this letter in support of the National Alliance for Water Innovation ( NAWI ), lead by Lawrence Berkeley National Laboratory ( LBNL ), Oak Ridge National Laboratory ( ORNL ), and the National Renewable Energy Laboratory ( NREL ). It is Poseidon s understanding that the U.S. Department of Energy ( DOE ) is expected to announce a funding opportunity within the next couple of months to establish a Clean Water Hub to further advance state-of-the-art water treatment technologies, including for. LBNL, ORNL, and NREL are recognized leaders in research, particularly as it relates to the energy and water sectors. Poseidon would like to commend the DOE on recognizing the important link between energy and clean water, and taking a crucial step towards developing technologies that improve energy-water efficiency. Furthermore, Poseidon would like to recommend NAWI for the DOE s Clean Water Hub funding opportunity and, should they be successful, offer its ongoing support and resources toward their research efforts. Poseidon is a leader in the development of water supply and water and wastewater treatment projects using a public-private partnership ( P3 ) approach. Poseidon is looking to expand its operations in North America which would create opportunities to deploy new technologies that improve its operations and competitiveness. Poseidon aspires to be a leader in advancing new water treatment technologies, and has significant experience and assets necessary to develop, pilot, scale up, and implement new water technologies. Poseidon has an interest in leveraging these resources to help develop more efficient water technologies. Poseidon understands that NAWI aspires to become a Clean Water Hub that researches and develops new water technologies to lower the energy requirements, environmental impacts, and costs of water treatment. Poseidon is particularly interested in researching and implementing new technologies that are able to address existing operational challenges at its facilities, including: advanced predictability of changes in feedwater conditions, optimization of feedwater intake structures, and improved energy efficiency for seawater. Poseidon understands that the DOE s Clean Water Hub funding opportunity is intended to advance new water technologies with a technology readiness level ( TRL ) of 2 to 4, Poseidon is willing to share real-world operating data from its facilities so that researchers are better able to mimic realistic operating conditions. In addition, if NAWI is able to develop new water technologies that achieve a TRL of 6 or greater, Poseidon may be able to provide access to viable locations to pilot such technologies in an operating, full-scale treatment facility.
Based on the above, Poseidon supports NAWIs application to the DOE s Clean Water Hub funding opportunity and will look to work together with NAWI to continue to support its efforts, should it be selected. If you have questions regarding this letter, please contact: Peter MacLaggan Senior Vice President, Poseidon Water 5780 Fleet Street, Suite 140 Carlsbad, CA 92008 Phone: 760.655.3999 PMacLaggan@poseidonwater.com ~or~ Scott Maloni Vice President, Poseidon Water 5780 Fleet Street, Suite 140 Carlsbad, CA 92008 Phone: 760.655.3995 SMaloni@poseidon1.com Sincerely, Peter MacLaggan Senior Vice President Poseidon Water
Appendix Project Experience and Company Information Poseidon Water Poseidon Water is a leading U.S. water project development specialist focused on Public- Private Partnerships. Poseidon s most recent project experience includes the successful US$1 billion, 54MGD Carlsbad seawater facility (the Carlsbad Project ), the largest seawater facility in the Americas. The Carlsbad Project achieved commercial operations in December 2015 on-budget and on-schedule. Poseidon works in partnership with private industrial customers and public agencies and has successfully delivered innovative projects across North America. In particular, Poseidon developed the nation s first independent upgrade to an existing large-scale wastewater treatment project (23 MGD) in Cranston, R.I. under a long-term lease arrangement, and the Carlsbad Project reached financial close in December 2012 raising $922 million and since then has been widely noted earning the following accolades from the industry and financial press: 2017 Membrane Facility of the Year (American Membrane Technology Association/ American Water Works Association) 2017 Grand Award for Engineering Excellence (American Council of Engineering Companies) 2016 Plant of the Year (Global Water Intelligence) 2016 Design-Build Project of the Year (Design-Build Institute of America) 2016 Energy Champion (San Diego Gas & Electric) 2013 Deal of the Year award for the Far West Region (The Bond Buyer) 2012 Largest U.S. Project Financing Deal (Bloomberg) 2012 North American Infrastructure Deal of the Year (Infrastructure Investor) 2012 North American Water Deal of the Year (Project Finance Magazine) 2012 Global Deal of the Year (Global Water Intelligence) In addition to our development capabilities, Poseidon has unique financial capabilities as our parent company is Brookfield Asset Management, an experienced infrastructure and development investor with more than US$250 billion of assets under management. Brookfield Asset Management has an unparalleled reputation for long-term investing: More than 115 years of investing in real assets Approximately US$250 billion in assets under management Brookfield Infrastructure Group has a US$60 billion high-quality portfolio of infrastructure assets in ports, water, railways, natural gas transmission pipelines, toll roads, and electricity transmission lines
Relevant Project Experience: # Project Name Location Total Contract Value (USD) 1 Carlsbad 2 Saint John Water 3 Cranston, Rhode Island Wastewater Treatment Plant 4 Mexican Water Recycling Program 5 Tampa Bay 6 Olmos Irrigation Carlsbad, California / San Diego County Saint John, New Brunswick Cranston, Rhode Island Multiple Locations, Mexico Tampa Bay, Florida Olmos, Peru P3 Contract Type structure $922 million Developed Project under Public-Private Partnership with San Diego County Water Authority to Design, Build, Finance, Own, Operate and Maintain (DBFOOM) the project $111 million Design, Build, Finance, Operate and Maintain (DBFOM) a new water treatment plant and design, build and finance 26kms of pipeline. $77 million Long-term lease and upgrade with financing under Design, Build, Finance, Own, Operate and Maintain (DBFOOM) delivery method $148 million Selected by PEMEX, the national oil company of Mexico, after public solicitation to Design, Build, Finance, Operate and Maintain (DBFOM) $110 million Selected by Tampa Bay Water to Design, Build, Own, Operate, and Transfer a 25MGD facility Undisclosed Long-term lease of a 12-mile pipeline and 43,500 hectares of irrigated land Contract Current Status Duration 30 years 54 MGD project in operation Dec. 2015. On-time and on-budget 32 years 20 MGD project, reached financial closing in Feb. 2016 25 years 23 MGD wastewater treatment plant in Operation, 250-mile collection system, and 22 pump stations; completed $30 million in upgrades N/A 50 MGD, 5 projects reached Full Operations between Oct. 1998 and 2002 N/A 25 MGD project purchased from Poseidon during construction, which delayed timeline; began operation in 2007 20 In operation 75 State Street, Suite 2701A Boston, Massachusetts 02109-1839 Telephone: (617) 315-4444 www.poseidonwater.com 4
# Project Name Location Total Contract Value (USD) P3 Contract Type structure Contract Duration Current Status 7 BRK Ambiental Acquisition 8 Huntington Beach Plant Brazil Huntington Beach, CA/ Orange County $908 million ($768 million upfront and $140 million additional) Acquisition of Odebrecht Ambiental Water Utility (renamed BRK Ambiental), and their 26 existing assets ~$900 million Developed Project under Public-Private Partnership with Orange County Water Authority to Design, Build, Own, Operate and Transfer (DBOOT) the project N/A Up to 50 years Acquisition closed April 2017 54 MGD project in latestage development 75 State Street, Suite 2701A Boston, Massachusetts 02109-1839 Telephone: (617) 315-4444 www.poseidonwater.com 5