ISO 22449-2:2020

INTERNATIONAL ISO
STANDARD 22449-2
First edition
2020-05
Use of reclaimed water in industrial
cooling systems —
Part 2:
Guidelines for cost analysis
Utilisation de l'eau recyclée dans les systèmes de refroidissement
industriels —
Partie 2: Lignes directrices relatives à l'analyse des coûts
Reference number
ISO 22449-2:2020(E)
©
ISO 2020

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ISO 22449-2:2020(E)

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© ISO 2020
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Published in Switzerland
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ISO 22449-2:2020(E)

Contents Page
Foreword .iv
Introduction .v
1 Scope . 1
2 Normative references . 1
3 Terms, definitions and abbreviated terms . 1
3.1 Terms and definitions . 1
3.2 Abbreviated terms . 2
4 Guidelines for the cost analysis. 2
4.1 General . 2
4.2 Principles of the cost analysis . 3
4.3 Cost calculation method . 3
4.3.1 Capital cost . 3
4.3.2 Operation and maintenance cost . 5
4.3.3 Replacement cost . 7
4.3.4 Disposal cost . 8
4.4 Cost analysis indexes . 8
4.4.1 General. 8
4.4.2 Levelized cost of cooling water (LCOCW) . 9
Annex A (informative) External benefit elements .10
Annex B (informative) Cooling system materials .12
Annex C (informative) Chemical cost elements .14
Bibliography .15
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ISO 22449-2:2020(E)

Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards
bodies (ISO member bodies). The work of preparing International Standards is normally carried out
through ISO technical committees. Each member body interested in a subject for which a technical
committee has been established has the right to be represented on that committee. International
organizations, governmental and non-governmental, in liaison with ISO, also take part in the work.
ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of
electrotechnical standardization.
The procedures used to develop this document and those intended for its further maintenance are
described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the
different types of ISO documents should be noted. This document was drafted in accordance with the
editorial rules of the ISO/IEC Directives, Part 2 (see www .iso .org/ directives).
Attention is drawn to the possibility that some of the elements of this document may be the subject of
patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of
any patent rights identified during the development of the document will be in the Introduction and/or
on the ISO list of patent declarations received (see www .iso .org/ patents).
Any trade name used in this document is information given for the convenience of users and does not
constitute an endorsement.
For an explanation of the voluntary nature of standards, the meaning of ISO specific terms and
expressions related to conformity assessment, as well as information about ISO's adherence to the
World Trade Organization (WTO) principles in the Technical Barriers to Trade (TBT) see www .iso .org/
iso/ foreword .html.
This document was prepared by Technical Committee ISO/TC 282, Water reuse, Subcommittee SC 4,
Industrial water reuse.
A list of all parts in the ISO 22449 series can be found on the ISO website.
Any feedback or questions on this document should be directed to the user’s national standards body. A
complete listing of these bodies can be found at www .iso .org/ members .html.
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ISO 22449-2:2020(E)

Introduction
Large amounts of water resources are used in industrial development. Industrial cooling water use
accounts for a high proportion of industrial water use. Industrial water reuse is one of the promising
ways to solve water shortages and to provide a new water source for cooling systems. The quality of
reclaimed water is of great importance for the design and operation of industrial cooling systems.
Industrial wastewater must meet the requirements of the cooling systems before it can be used
as make-up water. Consequently, the primary cost consideration is related to the costs of treating
industrial wastewater. In addition, for new-built cooling systems based on life-cycle consideration, the
capital cost, operating cost and maintenance cost need to be considered.
This document provides a comparative cost analysis method for cooling systems using reclaimed water.
It will be conducive to establishing an effective and unified cost analysis method in different countries
for further cost comparison. This document is intended to lead the use of reclaimed water in industries
worldwide, promoting the reuse of water resources, improving water-use efficiency and putting into
practice the concept of the industrial circular economy.
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INTERNATIONAL STANDARD ISO 22449-2:2020(E)
Use of reclaimed water in industrial cooling systems —
Part 2:
Guidelines for cost analysis
1 Scope
This document provides guidelines for cost analysis of the use of reclaimed water in industrial cooling
systems.
This document is intended for new-built industrial cooling systems using reclaimed water as make-up
water, in which the reclaimed water originates from industrial wastewater and is generated through
wastewater treatment systems for reuse. The source of industrial wastewater is from all the production
plants inside the enterprise.
In this document, the levelized cost of cooling water (LCOCW) is used to compare and determine which
industrial cooling system is more expensive per-kilowatt-hour heat removed.
Use of reclaimed water will have a direct impact on the operating cost of cooling systems and the
environment. External benefits, including positive externalities and negative externalities, are provided
in Annex A, which considers environmental, social and financial elements.
This document is intended for all types of stakeholders involved in reclaimed water use in new-built
industrial cooling systems.
This document aims to ensure consistency within any organization engaged in reclaimed water reuse.
This document provides a broad framework within which costs for new-built industrial cooling systems
using reclaimed water can be assessed. The currency used is local currency (LCY).
2 Normative references
There are no normative references in this document.
3 Terms, definitions and abbreviated terms
3.1 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
ISO and IEC maintain terminological databases for use in standardization at the following addresses:
— ISO Online browsing platform: available at https:// www .iso .org/ obp
— IEC Electropedia: available at http:// www .electropedia .org/
3.1.1
capital cost
capital expenditure
money used to purchase, install and commission a capital asset
[SOURCE: ISO 15663-3:2001, 2.1.3, modified — preferred term changed from capital expenditure to
capital cost.]
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ISO 22449-2:2020(E)

3.1.2
disposal cost
money used to demolish and rehabilitate a capital asset at the end of its life
3.1.3
heat rejection capacity
amount of heat which can be rejected by a cooling system
Note 1 to entry: Measured in kW (1 000 Watts, thermal or electric).
3.1.4
operation and maintenance cost
cost incurred in running and managing the facility, plus labour, material and other related costs
incurred to retain a building or its parts in a state in which it can perform its required functions
[SOURCE: ISO 15686-5:2017, 3.1.9 and 3.1.11]
3.1.5
replacement cost
anticipated cost to major system components that are required to maintain the operation of a facility
3.2 Abbreviated terms
The abbreviated terms in Table 1 apply.
Table 1 — Abbreviated terms
Abbreviation Full term
EPCM engineering procurement construction management
LCY local currency
LCOCW levelized cost of cooling water
4 Guidelines for the cost analysis
4.1 General
The scope of the costs includes the costing associated with wastewater treatment systems and
industrial cooling systems.
This document includes:
— principles of the cost analysis;
— cost calculation method;
— cost analysis indexes.
The flow diagram and components of a cooling system using solely reclaimed water as make-up water
are shown in Figure 1.
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ISO 22449-2:2020(E)

Figure 1 — Flow diagram and components of a cooling system using reclaimed water
4.2 Principles of the cost analysis
[5]
Cost analysis should observe the following principles :
a) Life-cycle cost analysis should be used as the cost analysis method, and the calculation period for
the analysis should include the construction period, operation period and disposal period.
b) The cost analysis should take the following items into account: the capital cost during the
construction period; the operation, maintenance and replacement cost during the operation period;
and the disposal cost during the disposal period.
c) The scope of cost includes the costs associated with the wastewater treatment system and
industrial cooling system.
4.3 Cost calculation method
4.3.1 Capital cost
4.3.1.1 Principles of capital cost calculation
Capital cost calculation should observe the following principles:
a) The scope of capital cost covers the relevant equipment, buildings and supporting facilities of the
industrial cooling system and the wastewater treatment system.
b) The capital cost calculation should be based on the whole system, and the cost should cover the
whole construction period from initial work to the completion of construction and commissioning.
c) The capital cost should be annualized based on the construction schedule during the
construction period.
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ISO 22449-2:2020(E)

4.3.1.2 Capital cost calculation
4.3.1.2.1 Construction and building cost
The construction and building cost includes:
a) construction labour cost (all salaries and wages paid to construction workers, supervisory staff
and overhead personnel);
b) construction material cost (all construction material purchased by the contractor or the owner for
use on the construction project);
c) construction equipment usage cost (the construction contractor’s equipment usage operating cost
for the installation of all bulk materials and equipment).
4.3.1.2.2 Equipment cost
Equipment cost consists of the purchase cost of all process, non-process or fixed equipment purchased
by the contractor or owner, but excludes freight cost and duties. It is calculated according to the
equipment list and the quotations from vendors.
A good choice of material for equipment can deal with complex water quality of reclaimed water for
new-built cooling water systems. It can affect the operation regarding the required amount of direct
energy consumption, the occurrence of controlled (wastewater treatment) and uncontrolled (leakage)
emissions to the environment and the direction of heat emissions. The selected materials will require a
certain level of investment. Annex B, Table B.1, describes materials commonly used in cooling systems
and the effects of water quality on the material.
4.3.1.2.3 Subcontract cost
Subcontract cost includes all lump sum/unit rate subcontracts let by the contractor or the owner which
are not included in the engineering procurement construction management (EPCM).
4.3.1.2.4 Indirect cost
The indirect cost consists of the EPCM cost, the cost for temporary construction facilities and
temporary utilities, catering and lodging cost, vendor representatives cost, spare parts for start-up,
pre-commissioning and commissioning, first fills, third-party engineering services/testing/inspection,
freight and duties/taxes.
4.3.1.2.5 Owner's cost
The owner's cost consists of the owner’s labour cost and expenses during construction, consultants'
costs, payment of licenses and royalties, land acquisition costs, environmental evaluation cost,
insurance, tests and study cost.
4.3.1.2.6 Contingency cost
Contingency cost is a provision of funds for unforeseen or inestimable costs within the defined project
scope relating to the level of engineering effort undertaken and estimate/engineering accuracy.
Contingency cost of each sub-item of the system is determined according to the risk level, and the total
contingency cost is summarized finally.
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ISO 22449-2:2020(E)

4.3.1.2.7 Capital cost of the system
The capital cost of the system is the total of the above-mentioned items, calculated according to
Formula (1):
C = C + C + C + C + C + C (1)
1 2 3 4 5 6
where
C is the capital cost, in LCY;
C is the constructing and building cost, in LCY;
1
C is the equipment cost, in LCY;
2
C is the subcontract cost, in LCY;
3
C is the indirect cost, in LCY;
4
C is the owner’s cost, in LCY;
5
C is the contingency cost, in LCY.
6
4.3.2 Operation and maintenance cost
4.3.2.1 Principles of operation and maintenance cost calculation
a) The scope of
...