Understand the true cost of water in manufacturing – it might be five times greater than you think!

By Ollie Brown and Tom Purkhardt
Water efficiency specialists at BIP.Verco

If somebody asked you what you pay for water, what figure would you give them? Would it be the figure on the utility bill?

Unfortunately, utility costs are just one component of a much bigger list of costs associated with water use. BIP.Verco's analysis indicates that, once all associated costs are considered, the true cost of certain water types for manufacturers can be up to five times the amount shown on the water bill.

With water costs rising, and an increasing number of businesses suffering from delays and disruptions due to lack of supply, the best way to ensure your site stays resilient is to:

consider which costs should be included in the true cost of water;
calculate the realistic figure;
optimise your water use to reduce it as much as possible; then
utilise the true cost of water to build an improved business case for water saving projects.

How do you calculate the true cost of water for a manufacturing site?

The calculation seems simple: utility cost + associated water costs = the true cost of water.

However, the 'associated costs' section requires you to understand your site's water use in detail. You need to be able to list every cost associated with water, from purchase and supply, to treatment, to discharge. We'll break down the most common associated costs below, to help you do just that.

What costs should manufacturers include when calculating the true cost of water?

1. Water purchase and supply

These are any costs that cover getting water onto your site. For example:

your tariff with our local supplier;
costs related to boreholes; or
license costs for water offtake.

2. Treatment

Once the water has come in, the next stage is treating it until it reaches the required quality levels. Those levels depend on the product and/or end use of the water. For example:

If the water is going into a product, it’s likely it will go through a combination of softeners, reverse osmosis, and potentially other pre-treatments to get it to a quality where it can be used safely.
If the water is being used for boilers, you’ll need to soften it and put it through a reverse osmosis system to prevent scale.
If the water is being used to wash floors or as part of certain CIP protocols, it won’t need to be treated as thoroughly.

Some of the costs here are:

electricity for moving water around;
replacing membranes, soaps and chemicals; and
water losses, which happen at each stage of the process. Often, at different treatment stages, we lose water with concentrated contaminants in it.

This is why it’s worth developing a utility distribution map – so you can track how each stream of water is used, and what the treatment costs involved will be as a result. Our experts can help you with this. Simply get in touch for a chat about how.

3. Heating

Water can be heated in several different ways, from steam to recovered energy.

How much it costs to heat water depends on the way it is heated and the temperature it is heated to. Heating water to 70 degrees is going to be cheaper than heating it to 90 degrees or turning it into Steam. This cost will likely appear as part of your fuel bill, so is easily overlooked. But it remains a key part of the true cost of water.

4. Waste water treatment

Once water has been used, but before it can be discharged, it must be processed to a certain standard. Failing to meet this standard can result in fines.

This processing depends on the quality of the water.

Costs at this stage could be:

electricity used to process water;
chemicals used to process the water; and
membrane replacement and upkeep.

5. Discharge

Depending on where the water from your site goes, there may be a discharge tariff. These tariffs use the Mogden formula, which assesses the quality of water being discharged. Water that is of a higher quality scores better in terms of the Mogden formula, which should result in a lower cost for your business.

Discharge, though inevitable, can also be minimised through reuse and recycling.

How can manufacturers make their water use more efficient?

Step 1: Calculate the true cost of water

Determine how much you're actually paying for water, taking into account everything mentioned above. This will help you develop a realistic view of your water use, pinpoint any stages at which water is being disproportionately lost or wasted, and analyse where water could be reused or recycled.

Step 2: Identify the inefficiencies

Analyse shift patterns, actions, hygiene, cleaning, and CIP, identifying any points at which water is lost, misused or wasted. This will help you make a list of behavioural and process improvements that can be actioned quickly, resulting in significant savings.

Step 3: Optimise processes to reduce waste and overall water demand

Ask: Could the water we purchase have multiple on-site uses before it is discarded? The most efficient sites either:

form strong cascades where water from a process that is relatively clean is then used for another, then it cascades down the system; or
recycle and reuse their water.

How can BIP.Verco help manufacturers improve water efficiency?

We help you understand and map your water use and uncover opportunities for improvement

Our consultants support manufacturers at all stages of their water management journey. We offer:

A metering platform, MyPerformance, which has been tracking water consumption for 30 years, evolving with the needs of our clients.
Dedicated audits, which solve particular questions, such as 'can we reuse this type of water at this stage?'
Deep Dives into the entirety of a site's water use and distribution, uncovering specific opportunities for improvement.

Browse our water efficiency services

We help you understand relevant legislation and make the business case for water projects

We recently partnered with the University of Cambridge to develop a tool to help businesses improve the business case for water recycling projects. Using data such as water use and volume, the tool provides you with:

advice on relevant legislation;
a list of recommended technology that can help you; and
a decision on whether or not you have a solid business case for your project yet.

It acts as a quick one-stop shop to figure out whether a project has true potential before you invest too much time and effort.

If you’d like to know more about the tool, or see a demonstration, please get in touch.

Ask us your questions about the tool

Upcoming webinar on water efficiency

Turning water scarcity into opportunity

Date: Tuesday 17th November

Time: 14:00-15:00 GMT

During this webinar, BIP.Verco experts will explore how to:

understand your water use and make water projects pay back;
identify 'low-hanging fruit' water efficiency opportunities;
make sense of the water recycling/reuse conundrum; and
select the appropriate technology to help you use and monitor water more efficiently.

Frequently asked questions about water efficiency in manufacturing

What is the true cost of water in manufacturing?

The true cost of water is the total cost of all site activities related to water. It’s not just the utility bill, it’s everything from purchase and supply to discharge. Our experts suggest that, once all associated costs have been considered, the true cost of water for manufacturers can be up to five times the amount shown on the water bill for certain water types. Once you know this certain payback thresholds or water saving projects may now become more possible to implement.

What hidden expenses should manufacturers include when calculating water costs?

We recommend looking at purchase, supply, treatment, heating, pumping, processing, discharge, water losses, and wastage. To find and total all these hidden costs, we recommend forming a utility distribution map to track how water is used around your site, at every stage from entry to discharge.

How can water efficiency consultants help manufacturing sites?

Our experts on water efficiency can help manufacturing sites understand and monitor water use, understand relevant legislation, optimise water-based processes, reduce waste through reuse and recycling, and more. From general advice to detailed audits, we can support you at any stage with specialist knowledge and efficient technology.