Water and Energy Nexus: Reverse Osmosis in Desalination and Pressure Retarded Osmosis (PRO) in Power Generation By Ran

1. Water and Energy Nexus: Reverse Osmosis in Desalinationand Pressure Retarded Osmosis (PRO) in Power GenerationByRandy TrubyToray Membrane USA, Inc.

2. Toray Industries • Toray is a World Leader in Water Supply and Wastewater Reclamation using RO Membranes • Reverse Osmosis Process: • Seawater Desalination • Wastewater Treatment and Reclaim • Industrial use • Food Separations

3. Outline of Toray Industries, Inc. Founded: January 1926 Net Sales (Year ended on March 31, 2008): 16,464 million USD Employees (As of March 31, 2008): 38,565 Main Business: Manufacturing and sales of the following products: 1. Fibers and Textiles: Nylon, polyester, acrylics, ETC 2. Plastics and Chemicals: Nylon, ABS resins, polyester, PP films, etc. 3. IT Related Products: Plastic materials, LCD color filters, PDP materials, etc. 4. Carbon Fiber Composite Materials: Carbon fibers, carbon fiber composite 5. Environment and Engineering: Housing & Building Materials, Environment Equipment, Membrane & Water Treatment System, Plant Engineering & Machinery 6. Life Science and Other Businesses: Pharmaceuticals and Medical Products

4. Membrane Products Line-up of Toray Size 0.001 ㎛ 0.01 ㎛ 0.1 ㎛ 1 ㎛ 10 ㎛ High molecular weight polymer Ion, Low molecule weight organics Separation materials Colloid Agricultural Chemical Trihalomethane Clay Coliform Cryptosporidium Virus Monovalent Ions Multivalent Ions Bacteria RO (Reverse Osmosis) UF (Ultra-filtration) MF (Micro-filtration) Type NF (Nano-filtration) Appli-cation Municipal Drinking Water, Pretreatment for RO Process MBR (Membrane Bio or Reactor) for Waste Water Treatment Ultra Pure Water, Seawater and Brackish Water Desalination, Waste Water Recycling Softening, Removal of Toxic substance Toray’s membrane products RO/ NF Element MF/UF Module MF Module for MBR

5. Global RO/NF Market Size - 2009 Total Sales: $465 Million USD

6. Global RO/NF Market Growth Forecast % of growth Seawater Desalination 19 Wastewater Reclamation 12 Ultrapure Water 03 Brackish Water Treatment 04 Specialty Separations (food, pharma) 10 Nanofiltration 10 Overall Growth Rate 09

7. High Recovery Seawater Desalination Plant in Trinidad and Tobago Flocculation Dual Media Filter Cartridge Filter 2nd Pass RO SUL-G20F 94.5% Recovery Sedimentation 1st Pass RO SU-820 53% Recovery P P P P Raw Water Product Water BCS Started on March 2002 - 6 years reliable operation with Toray’s RO Capacity : 136,000m3/d Membrane Type 1st Pass : SU-820 2nd Pass : SUL-G20F Recovery Rate 1st Pass : 53%, 2nd Pass : 94.5% The largestBCS (Brine Conversion System) SWRO plant in the world 2nd Pass RO system is applied for low salinity permeate

8. High Boron Rejection Seawater Desalination Plant in Singapore Pass 2 : BWRO Recovery : 90% pH : 10.0 – 10.4 Pass 1 : SWRO Recovery : 45% RO section Detail Bypass Low Pressure Pump (VFD) High Pressure Pump Scale inhibitor RO Feed Water Tank NaOH Post Treatment Booster Pump (VFD) Pass 1 Permeate Tank Energy Recovery (DWEER : Calder) Low Pressure Pump 2-pass system with alkaline dosing is applied for Boron removal Capacity: 136,000m3/d Membrane Type 1st Pass: TM820H-400B 2nd Pass: TM720-430 Boron regulation : <0.5mg/l Recovery Rate 1st Pass: 45%, 2nd Pass: 90%,

9. Wastewater Reuse Plant using Less-fouliungRO membrane in Sulaibuya, Kuwait Stable Operation form start operation in March 320,000 m3/d, a Largest Wastewater Reuse Plant in the World Less Fouling RO membrane

10. Osmotic Power • Pressure Retarded Osmosis (PRO) can generate 200-300 psi pressure • Osmotic Pressure can be harnessed to produce electricity. • Osmotic Power is a New concept: • Prototype Running in Tofte, Norway • Demonstration Plant in the near future • Osmotic Power may be supplied to the Grid, just as Wind, Wave, and Solar generated power are today

11. Osmotic Power • To generate electricity using Osmotic Energy Seawater, Fresh Water and Membrane • Development of Element is necessary • Big Potential Market (MW power plant needs 200,000 m2 of membrane) • Started talking with Statkraft, a Power Company in Norway.

12. WHY OSMOTIC POWER? • Baseload • Smallecologicalfootprint • Decentralisedsourceofenergy • Basedonproventechnology

13. “Proof of concept” • System scale-up • “Moving down the learning curve...” • Membrane and component testing and optimisation • Operation and maintenance experience • Meeting place for manufactures and utilities

15. TOFTE PROTOTYPE: A CATALYST Manufacturers invited to test technology at Tofte Tofte to become a preferred location for technical OP research Tofte capabilities make Statkraft an attractive partner for membrane & component manufacturers Governments Manufacturers Utilities • Increase awareness of osmotic power • Use Tofte as a lobbying tool for financial support • Relationship building • Invite representatives from sites deemed attractive for pilot and demo plants • Strengthen position of core business • E.g. promote Statkraft's osmotic power capabilities as a means to improve access for hydropower developments1 • Create demand for osmotic power • Geographical reach • Osmotic knowledge facilitates partnerships for developments in Statkraft's non-core geographies

16. CONCLUDING REMARKS Osmotic power can provide clean baseload energy, but cost reductions, a conducive policy framework and a critical mass of developers are required to succeed. Existing RO membranes and modules are NOT applicable for osmotic power. PRO membrane manufactured using nano-technology may provide the best solution. Prototype systems are focused on developing new membrane modules, improved pre-treatment and membrane maintenance protocol. Prototype and pilot demonstration plants are supporting and accelerating the development towards commercialization Page 16