Proposal for Subsea Desalination Project Offshore Vietnam Using OceanWell Technology
Executive Summary
Geodyn Solutions, in strategic partnership with OceanWell, proposes the development of a large-scale subsea desalination facility offshore Vietnam to address the country’s growing water scarcity challenges, particularly in coastal and industrial regions. Leveraging OceanWell’s innovative modular subsea pods, which utilize natural ocean pressure for energy-efficient reverse osmosis (RO), this project will produce ultra-clean drinking water while minimizing environmental impacts. With a total budget of $3 billion, the project targets a capacity of 1,000,000 cubic meters per day (m³/day), scalable through modular deployment. The suggested location offshore Vung Tau offers the best return on investment (ROI) due to high water demand from nearby Ho Chi Minh City and industrial zones. The project includes a 20% contingency, anticipates creating thousands of jobs, and delivers significant environmental benefits. Financial modeling projects a payback period of approximately 10 years and an internal rate of return (IRR) of around 7.5% over 20 years.
This proposal draws on OceanWell’s proven technology, adapted for Vietnam’s context, including integration with renewable energy sources like offshore wind to further reduce costs.
Suggested Location for Best ROI
Based on Vietnam’s water demand patterns, the optimal location for this subsea desalination facility is offshore Vung Tau in the South China Sea, approximately 10-15 miles from the coast at a depth of 1,300 feet. This site was selected for the following reasons:
- High Water Demand: Vung Tau is adjacent to Ho Chi Minh City and the Binh Duong industrial province, where rapid urbanization and industry (e.g., manufacturing, oil, and gas) drive significant water needs. The Mekong Delta and southern coastal areas face severe saltwater intrusion and drought, exacerbating scarcity. Desalinated water can be piped onshore for municipal, industrial, and agricultural use, with potential exchanges via existing networks.
- Infrastructure and Logistics: Proximity to major ports (e.g., Vung Tau Port) facilitates deployment and maintenance. Existing offshore oil/gas platforms and emerging wind farms provide synergies for energy supply and pipeline integration, reducing costs.
- ROI Optimization: High selling prices to industrial users ($0.80-$1.20/m³) and government incentives for water security projects maximize revenue. The site’s stable currents aid brine diffusion, minimizing environmental hurdles and permitting delays. Compared to central Vietnam sites (e.g., near Da Nang), Vung Tau offers better access to demand centers, yielding an estimated 20-30% higher ROI through lower transmission costs and faster market uptake. Feasibility studies indicate minimal seismic risks and alignment with Vietnam’s offshore wind targets (70-91.5 GW by 2050).
This location positions the project as a drought-proof solution, supporting Vietnam’s economic growth while achieving superior financial returns.
Detailed Breakdown of Capital Costs (CAPEX) and Operational Expenses (OPEX)
The total budget is $3 billion, with main CAPEX at $2.5 billion and a 20% contingency of $500 million to cover risks such as regulatory delays, supply chain issues, or unforeseen environmental assessments. Costs are estimated based on modular subsea desalination benchmarks, scaled for 1,000,000 m³/day capacity (equivalent to ~264 million gallons per day), and adjusted for Vietnam’s context (e.g., lower labor costs but higher import duties on tech).
CAPEX Breakdown ($2.5 Billion Main)
CAPEX is lower than traditional onshore plants (~40% reduction) due to OceanWell’s modular design, avoiding land acquisition and large facilities.
| Category | Description | Estimated Cost ($ Million) | Percentage |
|---|---|---|---|
| Subsea Pods and Technology | Procurement and fabrication of ~1,000 modular pods (1,000 m³/day each), including RO membranes, LifeSafe™ circulation systems, and pressure-harnessing components. | 1,000 | 40% |
| Pipeline and Onshore Infrastructure | Underwater pipelines (~15 miles), pumping stations, and integration with regional water grids (e.g., blending with Mekong sources). Includes storage tanks and treatment facilities onshore. | 750 | 30% |
| Installation and Deployment | Offshore vessel operations, subsea robotics for pod placement, and initial testing. Phased rollout to minimize risks. | 500 | 20% |
| Permitting, Design, and Feasibility | Engineering studies, environmental impact assessments (EIA), regulatory approvals, and partnerships with Vietnamese agencies (e.g., Ministry of Natural Resources and Environment). | 250 | 10% |
| Total Main CAPEX | 2,500 | 100% | |
| 20% Contingency | Buffer for inflation, currency fluctuations, or additional EIA requirements. | 500 | – |
| Grand Total | 3,000 | – |
Assumptions: Costs per m³/day capacity ~$2,500 (lower than traditional $5,000+ due to subsea efficiency). Scaled from smaller projects like OceanWell’s Water Farm 1 (~$200-300 million for 60,000 m³/day equivalents).
OPEX Breakdown (Annual, ~$104 Million)
OPEX is reduced by 40% compared to conventional RO due to passive pressure-driven filtration and renewable integration. Assumes 95% plant availability and $0.30/m³ total cost.
| Category | Description | Estimated Annual Cost ($ Million) | Percentage |
|---|---|---|---|
| Energy | Electricity for ancillary pumping and monitoring (~2 kWh/m³ at $0.08/kWh in Vietnam, integrated with offshore wind for cost stability). | 55 | 53% |
| Maintenance and Repairs | Subsea pod servicing via remotely operated vehicles, membrane replacements (every 5-7 years), and brine monitoring. | 31 | 30% |
| Labor and Operations | Onshore staff, monitoring, and compliance reporting. | 18 | 17% |
| Total Annual OPEX | Based on 346.75 million m³/year production. | 104 | **100% |
Assumptions: Energy costs dominate but are minimized; no chemicals needed. OPEX per m³ aligns with global averages ($0.50-$1.00) but adjusted for subsea savings and Vietnam’s lower electricity rates.
Job Creation
The project will generate significant employment, boosting local economies in Vung Tau and Ho Chi Minh City regions.
- Construction Phase (3-5 Years): ~5,000 jobs, including engineers, welders, divers, and logistics personnel. Focus on local hiring with training programs in subsea tech.
- Operational Phase (Ongoing): ~1,000 permanent jobs, covering operators, maintenance technicians, environmental monitors, and administrative roles. Indirect jobs (~2,000) in supply chains and water distribution.
- Total Impact: Over 8,000 jobs created, with emphasis on skills transfer to Vietnamese workers. This aligns with Vietnam’s goals for green jobs and could include partnerships with local universities for workforce development.
Environmental Benefits
OceanWell’s subsea technology sets a new standard for sustainability, addressing desalination’s typical drawbacks.
- Reduced Energy Use and Emissions: 40% less energy than traditional RO, lowering CO₂ emissions by ~100,000 tons/year (equivalent to removing 20,000 cars). Integration with renewables further cuts fossil fuel reliance.
- Minimal Marine Disruption: Pods at 1,300 feet use slow intake velocities and LifeSafe™ systems to avoid harming marine life. Brine diffuses naturally into deep currents, preventing “dead zones” common in onshore plants.
- Water Quality and Pollutant Removal: Filters out salt, microplastics, bacteria, viruses, and PFAS, producing ultra-clean water that enhances biodiversity when blended into ecosystems.
- Resilience and Land Preservation: Offshore placement protects against climate threats like sea-level rise and avoids coastal habitat destruction. Supports Vietnam’s environmental policies by reducing strain on the Mekong River and aquifers.
- Overall Impact: EIA-compliant with zero chemical use; potential for carbon credits. The project promotes sustainable water sourcing, aiding Vietnam’s adaptation to droughts and saltwater intrusion in the Mekong Delta.
Financial Projections: 20-Year ROI Chart, Payback Time
Financials assume $1.00/m³ selling price (conservative, based on industrial rates; could rise to $1.20/m³), 346.75 million m³/year production, and steady operations post-2030 launch. Annual net cash flow: $243 million (revenue $347 million minus OPEX $104 million).
- Payback Period: 10.3 years (main CAPEX recovered via net cash flows).
- IRR: Approximately 7.5% over 20 years.
20-Year ROI Chart
ROI is calculated as (cumulative net cash flow / main CAPEX) × 100%. The table below shows annual and cumulative metrics.
| Year | Annual Cash Flow ($) | Cumulative Cash Flow ($) | ROI (%) |
|---|---|---|---|
| 1 | 242,725,000 | 242,725,000 | 9.7 |
| 2 | 242,725,000 | 485,450,000 | 19.4 |
| 3 | 242,725,000 | 728,175,000 | 29.1 |
| 4 | 242,725,000 | 970,900,000 | 38.8 |
| 5 | 242,725,000 | 1,213,625,000 | 48.5 |
| 6 | 242,725,000 | 1,456,350,000 | 58.3 |
| 7 | 242,725,000 | 1,699,075,000 | 68.0 |
| 8 | 242,725,000 | 1,941,800,000 | 77.7 |
| 9 | 242,725,000 | 2,184,525,000 | 87.4 |
| 10 | 242,725,000 | 2,427,250,000 | 97.1 |
| 11 | 242,725,000 | 2,669,975,000 | 106.8 |
| 12 | 242,725,000 | 2,912,700,000 | 116.5 |
| 13 | 242,725,000 | 3,155,425,000 | 126.2 |
| 14 | 242,725,000 | 3,398,150,000 | 135.9 |
| 15 | 242,725,000 | 3,640,875,000 | 145.6 |
| 16 | 242,725,000 | 3,883,600,000 | 155.3 |
| 17 | 242,725,000 | 4,126,325,000 | 165.1 |
| 18 | 242,725,000 | 4,369,050,000 | 174.8 |
| 19 | 242,725,000 | 4,611,775,000 | 184.5 |
| 20 | 242,725,000 | 4,854,500,000 | 194.2 |
Assumptions: Constant cash flows (no inflation/escalation for conservatism); contingency not included in ROI calculations as it’s a buffer. Sensitivity analysis shows IRR could reach 10% with $1.20/m³ pricing.
Next Steps
Geodyn Solutions and OceanWell recommend initiating a feasibility study with Vietnamese stakeholders, including pilot pod testing by 2026. This project not only secures water for Vietnam but also positions the country as a leader in sustainable desalination. For further details, contact Geodyn Solutions.
