BUSINESS CASE FINDS RECYCLED WATER PROJECTS TOO EXPENSIVE
From the Minister for Water
Friday, 26 June 2009
The Brumby Government will focus on localised, cost effective recycled
water projects after a business case found large projects would have
cost up to $3.8 billion adding substantially to Melbourne household’s
water bills.
The upgraded Eastern Treatment Plant will provide Class A recycled water to Melbourne’s south-east and clean up water discharged at the ocean outfall at Gunnamatta.
Water Minister Tim Holding said water authorities had identified potential uses for up to 40 billion litres of Class A recycled water from the treatment plant.
“The Brumby Government and water authorities are undertaking record investment in major water projects including building Australia’s largest desalination plant and increasing the use of recycled water which helps reduce demand on our drinking water supplies,” Mr Holding said.
“We have ruled out drinking recycled water but Melbourne already uses more recycled water than any Australian city.
“The Government rejected two large-scale recycled water projects after the business case found they did not deliver value for money for Melbourne water users.
“Building these large recycled water projects would have a significant additional impact on Melbourne household water bills, which is not appropriate in the current economic climate.”
“It is disappointing that these large projects have proved too expensive, however there are limits on how much water bills should increase to pay for water projects.”
Mr Holding said new projects and projects underway would use around 7 billion litres of Class A recycled water from the completion of the Eastern Treatment Plant upgrade in 2012.
“Recycled water will be increasingly used for a range of purposes including industry, agriculture, sportsgrounds, open spaces and residential housing developments,” he said.
The Government committed to a business case into two large-scale recycled water projects as part of the Next Stage of the Government’s Water Plan announced in June 2007.
The Latrobe Valley option, to substitute recycled water to cool power stations, would have cost approximately $3.8 billion and used 67 billion litres of recycled water. The Yarra River option, to substitute river flows with recycled water, would cost approximately $2.1 billion and used 60 billion litres of recycled water and had environmental and water quality risks.
Mr Holding said Melbourne used 66.7 billion litres of recycled water in 2007/08 – almost three times the next closest Australian city.
“In 2002, the Government committed to recycling 20 per cent of Melbourne’s wastewater by 2010. We reached this target two years ahead of schedule and in 2007/08 we recycled 23.2 per cent of our wastewater,” he said.
Melbourne Water recently completed 12 months of trials at the Eastern Treatment Plant into the best method for improving the quality of treated effluent, to satisfy environmental standards under its licence.
Melbourne Water Managing Director Rob Skinner said the trial findings and preferred treatment approach would be provided to EPA Victoria in the coming weeks.
“The upgrade of the treatment plant will significantly reduce the impact of treated effluent on the marine environment at Gunnamatta, as well as creating a new source of recycled water,” Mr Skinner said.
From 2012 the following projects will utilises Class A recycled water from ETP:
• Boneo Recycling Project will receive 1.6 billion litres (and an additional 1.6 billion litres from Boneo Treatment Plant) for market gardens and for public open spaces;
• Casey Residential Project will receive up to 2.8 billion litres for dual pipe systems including the Hunt Club Estate;
• Dandenong Recycling Scheme to receive around 800,000 litres for industry, households and public open space;
• Officer and Berwick South Project to receive 1.3 billion litres for dual pipe systems;
• Mornington Recycling Project to provide 300,000 litres to irrigate the Mornington Racecourse and public open spaces (instead of Class C recycled water).; and
• Frankston Community Recycling Scheme to receive 700,000 litres for public open spaces (instead of Class C recycled water).
South East Water and Melbourne Water have identified potential projects to use up to 40 billion litres over the next thirty years, which will continue to be investigated as the Eastern Treatment Plant is completed.
The Government’s Water Plan also includes construction of Australia’s largest desalination plant, $2 billion investment to upgrade irrigation systems to capture water losses and a series of pipelines across Victoria.
The upgraded Eastern Treatment Plant will provide Class A recycled water to Melbourne’s south-east and clean up water discharged at the ocean outfall at Gunnamatta.
Water Minister Tim Holding said water authorities had identified potential uses for up to 40 billion litres of Class A recycled water from the treatment plant.
“The Brumby Government and water authorities are undertaking record investment in major water projects including building Australia’s largest desalination plant and increasing the use of recycled water which helps reduce demand on our drinking water supplies,” Mr Holding said.
“We have ruled out drinking recycled water but Melbourne already uses more recycled water than any Australian city.
“The Government rejected two large-scale recycled water projects after the business case found they did not deliver value for money for Melbourne water users.
“Building these large recycled water projects would have a significant additional impact on Melbourne household water bills, which is not appropriate in the current economic climate.”
“It is disappointing that these large projects have proved too expensive, however there are limits on how much water bills should increase to pay for water projects.”
Mr Holding said new projects and projects underway would use around 7 billion litres of Class A recycled water from the completion of the Eastern Treatment Plant upgrade in 2012.
“Recycled water will be increasingly used for a range of purposes including industry, agriculture, sportsgrounds, open spaces and residential housing developments,” he said.
The Government committed to a business case into two large-scale recycled water projects as part of the Next Stage of the Government’s Water Plan announced in June 2007.
The Latrobe Valley option, to substitute recycled water to cool power stations, would have cost approximately $3.8 billion and used 67 billion litres of recycled water. The Yarra River option, to substitute river flows with recycled water, would cost approximately $2.1 billion and used 60 billion litres of recycled water and had environmental and water quality risks.
Mr Holding said Melbourne used 66.7 billion litres of recycled water in 2007/08 – almost three times the next closest Australian city.
“In 2002, the Government committed to recycling 20 per cent of Melbourne’s wastewater by 2010. We reached this target two years ahead of schedule and in 2007/08 we recycled 23.2 per cent of our wastewater,” he said.
Melbourne Water recently completed 12 months of trials at the Eastern Treatment Plant into the best method for improving the quality of treated effluent, to satisfy environmental standards under its licence.
Melbourne Water Managing Director Rob Skinner said the trial findings and preferred treatment approach would be provided to EPA Victoria in the coming weeks.
“The upgrade of the treatment plant will significantly reduce the impact of treated effluent on the marine environment at Gunnamatta, as well as creating a new source of recycled water,” Mr Skinner said.
From 2012 the following projects will utilises Class A recycled water from ETP:
• Boneo Recycling Project will receive 1.6 billion litres (and an additional 1.6 billion litres from Boneo Treatment Plant) for market gardens and for public open spaces;
• Casey Residential Project will receive up to 2.8 billion litres for dual pipe systems including the Hunt Club Estate;
• Dandenong Recycling Scheme to receive around 800,000 litres for industry, households and public open space;
• Officer and Berwick South Project to receive 1.3 billion litres for dual pipe systems;
• Mornington Recycling Project to provide 300,000 litres to irrigate the Mornington Racecourse and public open spaces (instead of Class C recycled water).; and
• Frankston Community Recycling Scheme to receive 700,000 litres for public open spaces (instead of Class C recycled water).
South East Water and Melbourne Water have identified potential projects to use up to 40 billion litres over the next thirty years, which will continue to be investigated as the Eastern Treatment Plant is completed.
The Government’s Water Plan also includes construction of Australia’s largest desalination plant, $2 billion investment to upgrade irrigation systems to capture water losses and a series of pipelines across Victoria.
