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An Economic Analysis of Selected Agricultural Uses of Warm Water in the Pacific Northwest Resulting from Electric Power Generation^1,2,

ABSTRACT

Between 1970 and 1990, 85% of all new electric power generating capacity is estimated to require water for cooling. This poses a question for research scientists from several disciplines of finding some productive use for the waste water required by steam generating plants. Since there is usually a finite amount of water available for cooling purposes adjacent to the plant sites, the problem becomes one of finding an economic use for a scarce resource. Several possibilities are discussed for making use of waste water: aquaculture, soil heating, and greenhouse heating.

Two alternatives were considered for using cooling reservoirs (i) the production of carp for feed or fish meal, and (ii) catfish for the fresh market. Soil warming and greenhouse heating would involve locational problems relative to plant production, processing facilities, and transportation.

None of the uses studied showed clear-cut advantages in terms of profits which would attract economic investment. The price of carp must be greater than $59.52/metric ton to pay for the rental costs; the current market price ranges from $55 to $60/metric ton. The market demand for catfish has been overestimated and prices have been declining for the past 5 years. Using a 607-ha (1,500-acre) cooling pond, the market price for catfish would have to be $.44/kg ($.20/lb) or the enterprise would not pay for the use of the facilities. Catfish prices for 1970–71 were $.57/kg ($.26/lb); further increases in production in the southern USA will likely cause even lower prices. Relocating greenhouses in order to use warm water for heating appears to be a marginal investment. The size of soil-warming systems is limited by the high initial investment, estimated yield response, and vegetable prices. A soil-warming technique costing only $4,942/ha ($2,000/acre) to install would be profitable for 20 or 29 vegetable crops considered; an investment cost of $12,355/ha ($5,000/acre) would be profitable for only 1 of the 29 crops considered.

Key Words: aquaculture • greenhouse heating • soil warming • steam generating power plant • thermal pollution

¹ Paper presented August 19, 1971 in New York City at the symposium "Beneficial Uses for Thermal Discharges" held in conjunction with the annual meeting of the American Society of Agronomy. Washington Agr. Exp. Sta., Pullman, Scientific Paper 3736.

² This economic feasibility analysis of beneficial agricultural uses of warm water was funded by the Washington Farm Electrification Committee, which is sponsored by three investor-owned electric utilities; The Washington Water Power Co., Pacific Power & Light Co., and Puget Sound Power and Light Co. The general objective of the study was to evaluate the economic feasibility of alternative agricultural uses of off-peak electrical energy and/or cooling water from steam-electric power plants. The findings of the report were intended to be used in determining future research priorities.

³ Former Research Associate, Assistant Professor, Extension Economist, and Professor in the Dept. of Agricultural Economics, respectively, Washington State Univ., Pullman 99163.

Received for publication February 14, 1972.