|A new desalination plant in Carlsbad, California, is bordered by Interstate 5 on one side and the Pacific Ocean on the other.|
Poseidon should make money on this project, but it's a pretty thin deal. The 9.6% return they should be getting on their investment doesn't include operating costs. Those cost should be minimal, but they are not going to be zero. They have to produce the water to get paid, so breakdowns could impact their revenue stream. Their capacity is about 15% greater than what they are contracted to produce, so they have a little margin for error. Reverse osmosis depends on special filters to work. I don't know how long those filters / membranes last, but it's not forever, and replacing them is going to cost money. I wish them luck.
From a story by Bradley J. Fikes in The San Diego Union-Tribune.