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Water and wastewater treatment plants operated via BOO and other contracts eliminate expensive surprises for customers.

BOO contracts shift plant ownership burden to water treatment experts

While owning a water treatment plant can support long-term sustainability goals, it often comes with significant and sometimes unexpected expenses. From operations and maintenance to compliance risks, these hidden costs can add up quickly — especially for organizations unprepared for the full financial picture. What are some of the hidden costs associated with water treatment? How can the build-own-operate (BOO) financing model eliminate these financial surprises, giving businesses and municipalities access to efficient water treatment while keeping within budget?

Treatment Costs

Owning a treatment plant can be an expensive business. The true cost of ownership includes several major components. What are some of the significant costs associated with owning and operating a plant?

1. Capital investment: Having a plant designed and built is an expensive process, which comes with the cost of feasibility studies, design and engineering services, and permitting on top of the land, materials, and labor required. This financial commitment can often strain budgets or divert funds needed for other critical projects or business investments.
2. Operations: Efficient operation requires skilled workers, who command high salaries due to demand, potentially straining budgets. Ongoing training is also essential to keep staff current with new developments and technologies.
3. Maintenance: The expenses don’t stop once the plant is up and running. To ensure the plant continues to operate efficiently, regular maintenance is required. Unplanned repairs, equipment failures, and the need to replace aging infrastructure can result in unpredictable costs and service disruptions that can have financial ramifications.
4. Permitting standards: Another expensive aspect of plant management is ensuring that water quality complies with regulatory standards. To remain compliant, plant owners must keep informed of evolving environmental regulations and meet increasingly stricter discharge limits. This requires constant monitoring of contaminant levels and possible system upgrades and legal fees.
5. Energy consumption: Treatment processes can use a lot of electricity, particularly traditional aerobic processes that use compressed air rather than the passive aeration used by more advanced processes such as membrane aerated biofilm reactors (MABR)
6. Chemicals: In addition to chlorine compounds used for disinfection, there is often the need for nutrient removal chemicals, coagulants, pH adjusters, and more.

Unanticipated repairs, and fluctuating chemical and electricity prices can make it difficult to budget for these ongoing expenses, resulting in shortfalls.

BOO Contracts Eliminate Financial Surprises

These financial uncertainties and the overall burden of plant ownership can be significant challenges for businesses and municipalities. Fortunately, alternative models like BOO contracts offer a way to mitigate these risks. Fluence’s build-own-operate financial model transfers the burden of ownership from businesses or municipalities to a professional water treatment service. We manage the plant on the customer’s behalf and bear the financial responsibility for day-to-day plant operations, maintenance, and compliance.

Here’s how a BOO agreement can help municipalities keep within budget:

• No upfront capital costs: With a BOO agreement, Fluence finances, builds, owns, and operates the plant, reducing the financial burden on its customers. This can improve cash flow and free capital that can be channeled to other critical areas.
• Predictable monthly payments: Businesses and municipalities pay a fixed monthly fee, which covers all operating costs and maintenance expenses, as well as the treated water. With predictable monthly payments, customers don’t have to worry about incurring unexpected costs or going over budget.
• Expert operation and maintenance: With a BOO agreement, Fluence’s team of skilled water professionals handles operations and maintenance, as well as system optimization.
• Guaranteed performance and compliance: This financial arrangement also includes performance guarantees that ensure specified treatment volumes and water quality parameters are met, reducing the risk of permit violations and fines.
• Flexibility and scalability: If a customer’s water needs change in the future, a plant owned and operated by Fluence through a BOO contract can be expanded or upgraded without requiring large capital reinvestments.

With a BOO contract, businesses and municipalities can get the water services they need without any sneaky unexpected financial surprises.

Why BOO Is the Smarter Choice

For industries and municipalities looking to cut costs, avoid financial risks, and ensure reliable water treatment, BOO and other contracts like build-own-operate-transfer (BOOT) offer an effective solution.

Whether you’re looking for wastewater treatment, desalination, water reuse, or another treatment modality, Fluence can provide a turnkey, seamless approach that guarantees performance while freeing up capital for other business priorities.

Fluence offers its Water Management Services to tailor contracts to individual customers. By outsourcing water treatment to Fluence, business and municipal managers can concentrate on their core activities without the worry and expense that come with needs like O&M, staffing, and compliance.

Instead, they pay a fixed fee for guaranteed service managed by our team of knowledgeable professionals. Contact Fluence today to explore how we can save you money and optimize your water management strategy.