Energy Recovery to Save Carlsbad Desalination Plant $12 Million and Reduce CO2 Emissions by 41,000 Metric Tons Annually

Energy Recovery to Save Carlsbad Desalination Plant $12 Million and Reduce CO2
                   Emissions by 41,000 Metric Tons Annually

Premium PX® Q300 from Energy Recovery Chosen for Largest Plant in Western
Hemisphere — Demonstrating Desalination as an Environmental and Economically
Viable Resource for Water in the U.S.

PR Newswire

SAN LEANDRO, Calif., July 30, 2013

SAN LEANDRO, Calif., July 30, 2013 /PRNewswire/ -- Energy Recovery Inc.
(NASDAQ: ERII) announced today that its technology will be used in the
Carlsbad Desalination Project to help reach its ambitious carbon neutral goals
while significantly reducing overall energy costs. IDE, technology provider
and future operator of the plant, awarded Energy Recovery a contract for its
innovative energy recovery device (ERD) technology to the project, which will
be the largest desalination plant in the western hemisphere. As part of the
agreement, Energy Recovery will provide 144 of its PX Pressure Exchanger Q300
units to the seawater reverse-osmosis (SWRO) plant, aiding the estimated
production output of 189,250 cubic meters of desalinated water per day
(equivalent to 50 million gallons per day). The units are expected to ship by
the end of the year. 

By choosing the PX technology, the vanguard project for California's first
large-scale plant will save an estimated 116 million kWh (kilowatt-hours) of
energy per year, the equivalent of $12 million.^1 This energy savings will
also reduce CO[2] emissions by 41,000^2 metric tons per year - roughly the
annual greenhouse gas emissions from 8,542 passenger vehicles .

Energy Recovery's PX Pressure Exchanger devices work by capturing hydraulic
energy from the high-pressure reject stream of SWRO processes and transfers
this energy to low-pressure feed water with an efficiency of over 98 percent.
Because the PX device itself consumes no electrical power and recycles
otherwise lost energy in the form of pressure, the overall energy consumption
of the process is drastically reduced.

Carlsbad Desalination Project Represents Opportunity for Desalination in U.S.

When the Carlsbad plant comes online in 2016, it will bring the largest, most
technologically advanced and energy-efficient desalination plant in the
western hemisphere to San Diego County. In California and across the U.S.,
long-standing sources for fresh water are either diminishing because of
droughts or becoming unsustainable given population and agricultural growth.
The Carlsbad Desalination Project will provide the region with a
locally-controlled, drought-proof supply of high-quality water that meets or
exceeds all state and federal drinking water standards.

Semi-arid San Diego County has very limited local water resources; the County
Water Authority's long-term strategy to enhance the reliability of the
region's water supply includes diversifying its water supply sources. The
Carlsbad Desalination Project is a crucial element of this plan and will
provide enough high-quality drinking water to serve up to 112,000 households.

Along with the other project partners, Energy Recovery is working to
demonstrate that desalination is a viable solution to growing water demand.
The Carlsbad desalination plant is signaling a trend for upcoming projects in
the U.S. According to Global Water Intelligence, there are currently more than
12 desalination projects in various stages of planning in California, and more
that 40 medium and large projects on the drawing board across the U.S.

"The Carlsbad project has moved the needle for the desalination industry in
the U.S.," said Tom Rooney, CEO at Energy Recovery. "We're excited to bring
our experience and technologies to help this project and future U.S.
desalination plants maximize their energy savings just as we have helped
quench demand in regions and countries lacking fresh water like Australia,
China and the Middle East North Africa."

Energy Recovery PX Technology Highlights and Impact

Over the past decade, Energy Recovery has been refining its SWRO clean
technologies and employing its premium PX Pressure Exchanger solutions around
the world – currently accounting for 90 percent of the ERD market share
globally. IDE selected the PX Q300 device for the Carlsbad project because the
solution boasts:

  oThe lowest life cycle cost of any energy recovery device in the market.
  oHighest guaranteed efficiency of 97.2 percent.
  oHighest availability (99.8 percent uptime) with zero downtime.
  oSmallest installed footprint than any other ERD.
  oLifetime designed for 25+ years.

Energy Recovery devices have made it possible for the desalination market to
flourish. The Carlsbad desalination plant is signaling a trend for upcoming
projects in the U.S.

"At 50 million gallons per day, we chose the most reliable and efficient
energy recovery technology on the market. For larger plants such as the
Carlsbad Desalination project, it's important to weigh the energy saving
solutions and economies of scale," states Avshalom Felber, CEO of IDE
Technologies. "We have a long and trusted relationship with Energy Recovery
and together we'll show that advanced clean water solutions make desalination
possible for California by reducing and mitigating the negative CO[2] effects
and water costs."

Peter MacLaggan, VP of Poseidon Water - developer of the Carlsbad
plant-states, "IDE's choice of Energy Recovery's PX technology was the right
choice. The economics and environmental benefits are clear. This is part of
our goal and promise: to keep costs down and make sure we are carbon neutral
in the plant's operation." 

Additional Project Details

Poseidon Water LLC is the developer responsible for securing the Water
Purchase Agreement (WAP) with San Diego County Water Authority (SDCWA).
Financing up to $734 million was secured through the sale of Private Activity
Bonds. The plant is a joint venture between Kiewit/JF Shea Construction and it
has been contracted to IDE Technologiesas the SWRO design contractor. IDE
will operate the plant and is responsible for all process and performance
guarantees.

For an animated video showing how the PX device works, click here.

For high-resolution photographs of the PX device, click here.

Forward-Looking Statements

This press release contains forward-looking statements that reflect
management's current expectations, assumptions and estimates of future
performance and economic conditions. Such statements are made in reliance upon
the safe harbor provisions of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. The company cautions
investors that any forward-looking statements are subject to risks and
uncertainties that may cause actual results and future trends to differ
materially from those matters expressed in or implied by such forward-looking
statements. Statements about the expected shipment date of the PX energy
recovery devices are forward-looking and involve risks and uncertainties.
Energy Recovery disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events, or otherwise.

About Energy Recovery

Energy Recovery Inc. (NASDAQ: ERII) technology harvests power from
high-pressure fluid flows and pressure cycles. Through collaboration with
industry, Energy Recovery helps make industrial processes within water, oil &
gas, and other industries more profitable and environmentally sustainable.
With over 14,000 energy recovery devices installed worldwide, Energy Recovery
sets the standard for engineering excellence, cost savings, and technical
services to clients across the globe. Year after year, the company's clean
technologies save clients over $1.2 Billion (USD) in energy
costs.Headquartered in the San Francisco Bay Area, Energy Recovery has
offices in Madrid, Shanghai, and Dubai.www.energyrecovery.com

Media Contacts:

Kristan Kirsh
kkirsh@energyrecovery.com
Senior Marketing Communications, Energy Recovery
+510.746.5012

Jessica Jones
JJones@poseidon1.com
Community Outreach, Poseidon Water
+ 619.322.4955

Meirav Kavalsky-Brami
meiravkb@ide-tech.com
Marketing Communications Manager, IDE

^1 Calculations are based on the electricity costs for San Diego County of
approximately .10 cents / kWh (as of July 2013).

^2Emissions are derived from San Diego's utility (SDG&E) mix of generation
assets (781# CO[2]/mWh). 

SOURCE Energy Recovery Inc.

Website: http://www.energyrecovery.com
Website: http://carlsbaddesal.com
 
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