AN INVESTIGATION INTO OPTIMISING WATER FLOW OF INDUSTRIAL SYMBIOSIS: DEVELOPMENT AND APPLICATION OF A MODEL Bhadra Harshini Mallawaarachchi (198001C) Degree of Doctor of Philosophy Department of Building Economics, University of Moratuwa, Sri Lanka and School of Architecture and Built Environment, Deakin University, Australia October 2022 AN INVESTIGATION INTO OPTIMISING WATER FLOW OF INDUSTRIAL SYMBIOSIS: DEVELOPMENT AND APPLICATION OF A MODEL Bhadra Harshini Mallawaarachchi (198001C) Thesis submitted in partial fulfilment of the requirements for the degree Doctor of Philosophy Department of Building Economics, University of Moratuwa, Sri Lanka and School of Architecture and Built Environment, Deakin University, Australia October 2022 ii DECLARATION I declare that this is my own work and this thesis does not incorporate without acknowledgement any material previously submitted for a Degree or Diploma in any other University or Institute of higher learning and to the best of my knowledge and belief it does not contain any material previously published or written by another person except where the acknowledgement is made in the text. I retain the right to use this content in whole or part in future works (such as articles or books). Name of the Student: B.H. Mallawaarachchi Signature: Date: The above candidate has carried out research for the PhD thesis under my supervision. I confirm that the declaration made above by the student is true and correct. Name of the Supervisors: Prof. Y.G. Sandanayake (Principal Supervisor – University of Moratuwa) Dr. G. I. Karunasena (Principal Supervisor – Deakin University) Prof. Chunlu Liu (Associate Supervisor – Deakin University) Signature of the Principal Supervisor (University of Moratuwa): Date: 19.10.2022 Prof. Y.G. Sandanayake iii ABSTRACT An investigation into optimising water flow of industrial symbiosis: Development and application of a model The concept of Industrial Symbiosis (IS) has obtained world concern as a new initiative for achieving collaborative benefits through exchange of resources between industries including water. Even though, these initiatives became prominent as successful projects in the early stages, many of them have resulted in failures in the long term without achieving the expected results due to deficiencies in IS planning. In the current process, no prior evaluation and optimisation are taking place before implementing the identified water synergies. There is therefore a need to have a standardised method to assess the optimum water flow of IS. Accordingly, the current study aimed to develop a model to assess the optimum water flow of IS. In order to achieve the aim, the research stands within the pragmatism philosophical stance. The abductive approach was applied as the appropriate research approach. Sequential exploratory research design was adopted consisting three phases: Phase I: Desk study; Phase II: Interviews with industry experts; and Phase III: Case study. Phase I - Desk study was conducted to collect and review the data from reliable published sources to identify water inputs and outputs of industrial entities. Based on the key literature reviewed, the conceptual model was developed by integrating mathematical formulae. In Phase II, sixteen interviews were conducted with industry experts in Sri Lanka to collect the data. The collected data were analysed using the code-based content analysis technique with the application of QSR International’s NVivo. 12. As key findings derived from analysis, current methods & issues of industrial water management and enablers & barriers for initiating water exchange networks in Sri Lanka were identified. Furthermore, the conceptual model and mathematical formulae were also refined to the selected context. The applicability and feasibility of the model were evaluated during Phase III. An IS network in an export processing zone (EPZ) in Sri Lanka, comprising three geographically co-located industrial entities, was selected as a suitable case study. Seven semi-structured interviews were conducted with professionals within the selected case to collect the data, which were analysed using the mixed integer linear programming (MILP) approach. The assessment model was developed and tested using SageMath software. Finally, environmental, economic and social feasibility of the developed model were also determined. The developed model forms a unique foundation for assessing the optimum water flow of IS, applying in any context subject to context-specific enhancements. The novelty of the current research is its objective of reducing freshwater consumption of the IS network through maximum wastewater recovery in assessing the optimum water flow of IS. Thus, the research outcomes provide a role model for all developed and developing countries for reducing the environmental impact of industrialisation through optimum water sharing between industrial entities. Key Words: Industrial Symbiosis, Mathematical Programming, Optimisation Modelling, Optimum Water Flow, Water Network iv DEDICATION I dedicate this piece of work to my beloved family who encouraged me, with emotional and spiritual effort in this endeavour… v ACKNOWLEDGEMENT This research has been supported by a number of individuals with their utmost guidance and encouragement. I would like to acknowledge their appreciated contribution and to convey my gratitude to every one of them. First and foremost, I would like to express my sincere gratitude to Prof. Y.G. Sandanayake (Head, Department of Building Economics), Dr. G.I. Karunasena and Prof. C. Liu for their thoughtful guidance, assistance and encouragement provided by being my research supervisors. You converted me to an improved version as a researcher as well as an academic. Second, my heartfelt gratitude goes to Prof. Lalith de Silva, Professor, Department of Building Economics, University of Moratuwa; Prof. Dileeka Dias, Former Dean, Faculty of Graduate Studies, University of Moratuwa, Prof. Baskaran, Associate Dean (International and partnerships), Prof. Anthony Mills, Former Head, School of Architecture and Built Environment, Deakin University, Australia and Dr. Thanuja Ramachandra, Former Director – Faculty Higher Degrees Committee, Faculty of Architecture for initiating this Joint PhD program between Deakin University, Australia and University of Moratuwa, Sri Lanka. It was a greater opportunity to harvest new knowledge and research experience in two different research environments. I also extend my gratitude to Prof. Ajith de Alwis, Dean, Faculty of Graduate Studies, University of Moratuwa, Dr. Dominic Ahiaga-Dagbui and Dr. Sanja Roods, Higher Degree Research (HDR) Coordinators, School of Architecture and Built Environment, Helen Woodball, Manager International Research Training and the Faculty Coordinators of the Faculty of Science, Engineering and Built Environment and HDR Advisors of Graduate Research Academy – Deakin Research, Deakin University, Australia, for their unfailing assistance and guidance. Furthermore, Ch.QS. Mr. H.S. Jayasena, Former Head of the Department, the Research Coordinators, my colleagues and other academic & non-academic staff members of the Department of Building Economics are also acknowledged for their kind assistance. The greatest thanking thoughts convey to my research advisors, Prof. Thayaparan Gajendran and Dr. N.G.R. Perera for their valuable comments given by directing this research towards success. I further express my heartiest thanks to all the professionals in industry and academia who gave their immense contribution and editorial assistance during this research. Finally, an immeasurable thanks of all must go to my beloved husband, mother, father, my little son, daughter and my nursemaid who supported unconditionally by being with me patiently. vi TABLE OF CONTENT DECLARATION ....................................................................................................... II ABSTRACT ............................................................................................................. III DEDICATION .......................................................................................................... IV ACKNOWLEDGEMENT ........................................................................................ V TABLE OF CONTENT ........................................................................................... VI LIST OF FIGURES ................................................................................................. IX LIST OF TABLES ................................................................................................... XI LIST OF EQUATIONS ........................................................................................ XIII LIST OF ABBREVIATIONS .............................................................................. XIV LIST OF APPENDICES ...................................................................................... XVI LIST OF PUBLICATIONS AND AWARDS ................................................... XVII CHAPTER 1: INTRODUCTION TO THE RESEARCH ..................................... 1 1.1 RESEARCH BACKGROUND ................................................................................... 1 1.2 RESEARCH PROBLEM STATEMENT AND RATIONALE ........................................... 3 1.3 RESEARCH AIM AND OBJECTIVES ........................................................................ 6 1.4 RESEARCH METHODOLOGY ................................................................................. 6 1.5 SCOPE AND LIMITATIONS .................................................................................... 8 1.6 SIGNIFICANCE OF THE RESEARCH ........................................................................ 9 1.7 STRUCTURE OF THE THESIS ............................................................................... 10 1.8 CHAPTER SUMMARY ......................................................................................... 10 CHAPTER 2: LITERATURE REVIEW ............................................................... 12 2.1 INTRODUCTION .................................................................................................. 12 2.2 CONCEPT OF INDUSTRIAL WATER MANAGEMENT (IWM) ................................. 12 2.2.1 The need of water for industries ............................................................... 12 2.2.2 Issues in obtaining water for industries .................................................... 13 2.2.3 Wastewater discharge and related issues in industrial systems ............... 14 2.2.4 Industrial water management (IWM) ........................................................ 15 2.3 THE CONCEPT OF INDUSTRIAL SYMBIOSIS (IS) ................................................. 21 2.3.1 Evolution of industrial symbiosis concept................................................. 21 2.3.2 Industrial symbiosis in the context of circular economy ........................... 24 2.3.3 Definitions of industrial symbiosis ............................................................ 25 2.3.4 Fostering industrial symbiosis .................................................................. 29 2.3.5 Initiating procedure of industrial symbiosis systems ................................ 33 2.4 RESOURCE EXCHANGE IN INDUSTRIAL SYMBIOSIS ............................................ 35 vii 2.5 WATER FLOW OF INDUSTRIAL SYMBIOSIS: THE GLOBAL CONTEXT .................. 38 2.6 INDUSTRIAL WATER MANAGEMENT (IWM) IN SRI LANKA ............................... 41 2.7 CHAPTER SUMMARY ......................................................................................... 43 CHAPTER 3: RESEARCH METHODOLOGY .................................................. 44 3.1 INTRODUCTION .................................................................................................. 44 3.2 RESEARCH DESIGN ............................................................................................ 44 3.2.1 Formulate the research problem, aim and objectives ............................... 47 3.2.2 Literature review ....................................................................................... 47 3.2.3 Philosophical worldview of the research: Pragmatism stance ................. 47 3.2.4 Research approach: Abductive approach in theory redevelopment ......... 52 3.2.5 Research strategy: Sequential exploratory mixed research strategy ........ 55 3.2.6 Drawing conclusions and making recommendations ............................... 65 3.3 VALIDITY OF THE RESEARCH............................................................................. 66 3.4 CHAPTER SUMMARY ......................................................................................... 67 CHAPTER 4: DEVELOPMENT OF CONCEPTUAL MODEL AND MATHEMATICAL FORMULAE (PHASE I) ..................................................... 68 4.1 INTRODUCTION .................................................................................................. 68 4.2 OPTIMISATION MODEL DEVELOPMENT PROCESS .............................................. 68 4.2.1 Input and output water flow ...................................................................... 69 4.2.2 Step 1 - Data compilation and initial processing...................................... 80 4.2.3 Step 2 - Optimisation model design and development .............................. 87 4.2.4 Step 3 - Assessment of the optimal configuration ..................................... 98 4.2.5 Step 4 - Evaluation of the economic, environmental and social feasibility ............................................................................................................................ 99 4.3 CHAPTER SUMMARY ......................................................................................... 99 CHAPTER 5: DEVELOPMENT OF A CONTEXT-SPECIFIC MODEL (PHASE II) .............................................................................................................. 100 5.1 INTRODUCTION ................................................................................................ 100 5.2 THE PROFILE OF INTERVIEWEES AND DEMOGRAPHIC INFORMATION ............... 100 5.3 DATA COLLECTION AND ANALYSIS ................................................................. 103 5.4 RESEARCH FINDINGS - INDUSTRIAL WATER EXCHANGE IN SRI LANKA .......... 103 5.4.1 Existing methods of industrial water management ................................. 103 5.4.2 Existing issues of industrial water management ..................................... 107 5.4.3 Enablers and barriers to initiate water exchange networks in Sri Lanka .......................................................................................................................... 112 5.5 RESEARCH FINDINGS - DEVELOPMENT OF A CONTEXT-SPECIFIC ROBUST MODEL TO ASSESS THE OPTIMUM WATER FLOW OF IS IN SRI LANKA ............................... 119 5.5.1 Context-specific model requirements and enhancements of the conceptual model ................................................................................................................ 120 5.5.2 Key variables of the context-specific model ............................................ 122 5.5.3 Parameters of the context-specific model ............................................... 123 viii 5.5.4 Context-specific model development and testing .................................... 125 5.6 CHAPTER SUMMARY ....................................................................................... 127 CHAPTER 6: EVALUATION OF THE APPLICABILITY AND FEASIBILITY OF THE CONTEXT SPECIFIC MODEL (PHASE III) ......... 128 6.1 INTRODUCTION ................................................................................................ 128 6.2 PROCEDURE ADAPTED IN MODEL EVALUATION .............................................. 128 6.3 INDUSTRIAL SYMBIOSIS NETWORK OF AN EXPORT PROCESSING ZONE IN SRI LANKA: THE CASE STUDY .................................................................................... 128 6.4 ANALYSIS OF THE CURRENT STATUS OF THE SELECTED CASE STUDY ............ 132 6.4.1 Current status - Industrial Entity A ......................................................... 132 6.4.2 Current status - Industrial Entity B ......................................................... 134 6.4.3 Current status - Industrial Entity C ........................................................ 137 6.5 INITIATION OF OPTIMUM WATER EXCHANGE NETWORK BETWEEN SELECTED INDUSTRIAL ENTITIES ........................................................................................... 141 6.5.1 Planning of industrial symbiosis and identification of water synergies . 142 6.5.2 Application of the developed model for assessing the optimum water flow of the proposed industrial symbiosis network .................................................. 146 6.6 ENVIRONMENTAL, ECONOMIC AND SOCIAL FEASIBILITY OF THE PROPOSED OPTIMAL NETWORK .............................................................................................. 154 6.6.1 Environmental feasibility of the proposed optimal network ................... 155 6.6.2 Economic feasibility of the proposed optimal network (life cycle cost analysis) ........................................................................................................... 157 6.6.3 Social feasibility of the proposed optimal network ................................. 166 6.7 A WAY FORWARD OF THE DEVELOPED MODEL .............................................. 167 6.8 UNIQUENESS OF THE MODEL AND GENERALISATION ...................................... 167 6.9 CHAPTER SUMMARY ....................................................................................... 168 CHAPTER 7: CONCLUSIONS AND RECOMMENDATIONS ...................... 169 7.1 INTRODUCTION ................................................................................................ 169 7.2 OVERALL CONCLUSIONS OF THE RESEARCH ................................................... 169 7.3 LIMITATIONS OF THE MODEL APPLICATION .................................................... 174 7.4 CONTRIBUTION TO KNOWLEDGE ..................................................................... 175 7.5 RECOMMENDATIONS FOR INDUSTRY PRACTITIONERS ..................................... 176 7.6 RECOMMENDATIONS FOR FURTHER RESEARCH ............................................... 177 REFERENCES ....................................................................................................... 178 APPENDICES ........................................................................................................ 196 ix LIST OF FIGURES Figure Description Page Figure 2.1 United Nation’s 17 sustainable development goals 16 Figure 2.2 General principles for valuing water 18 Figure 2.3 Drivers and benefits of zero liquid discharge 19 Figure 2.4 Resource flow in linear and circular industrial systems 20 Figure 2.5 Conceptual framework of industrial ecology 23 Figure 2.6 The elements of IE seen as operating at different levels 24 Figure 2.7 Definitions of industrial symbiosis 26 Figure 2.8 Industrial symbiosis at Kalundborg, Denmark 30 Figure 2.9 Key characteristics of self-organising, planned and facilitated IS 31 Figure 2.10 “3-2 heuristic” criterion 36 Figure 2.11 The proposed re-development 40 Figure 3.1 A framework for research design 45 Figure 3.2 Research design framework 46 Figure 3.3 Sequential exploratory mixed design of this research 58 Figure 3.4 Case selection and unit of analysis 63 Figure 4.1 Optimisation model development process flow chart 69 Figure 4.2 Water flow network of Kalundborg IS Project, Denmark 72 Figure 4.3 Water flow network of Choctaw Eco-Industrial Park, USA 73 Figure 4.4 General water inputs and outputs 79 Figure 4.5 Water inputs and outputs of a typical industrial entity 80 Figure 4.6 Selection of industrial entities 82 Figure 4.7 A typical water input and output flows of an industrial entity 83 Figure 4.8 Water synergies between participating industrial entities 84 Figure 4.9 Source-sink relationships between the industrial entities A, B and C 85 Figure 4.10 Theoretical framework 86 Figure 4.11 The conceptual model for assessing the optimum water flow of IS (before mathematical formulae development) 92 Figure 4.12 The conceptual model for assessing the optimum water flow of IS (after mathematical formulae development) 97 Figure 5.1 Years of experience 101 Figure 5.2 Areas of expertise 102 Figure 5.3 Key categories of enablers and barriers (author defined) 113 Figure 5.4 Enablers for exchanging water among the industries in Sri Lanka 113 Figure 5.5 Barriers for exchanging water among the industries in Sri Lanka 115 Figure 5.6 Enablers and barriers for initiating water exchange networks 118 Figure 5.7 Context-specific model to assess the optimum water flow of industrial symbiosis in Sri Lanka 126 Figure 6.1 Geographical plan of the selected case study 131 Figure 6.2 Conventional water network of the selected case study 140 Figure 6.3 Possible water synergies between selected industries 144 Figure 6.4 Typical IS based water exchange network in the selected case study (proposed) 146 Figure 6.5 A screen shot of test results obtained from the SageMath software - TWW flow between industries 150 Figure 6.6 Optimal water flow network 151 x Figure 6.7 A screen shot of test results obtained from the SageMath software - freshwater consumption 152 Figure 6.8 A screen shot of test results obtained from the SageMath software - wastewater discharge 153 Figure 6.9 Results of sensitivity analysis 165 xi LIST OF TABLES Table Description Page Table 2.1 Resources flow of IS projects 38 Table 3.1 Philosophical assumptions in research 48 Table 3.2 Characteristics of the research approach 53 Table 3.3 Rationale for single case study design selected in this research 61 Table 4.1 Selection of published IS projects for desk study 70 Table 4.2 Articles availability of the selected cases 71 Table 4.3 Water inputs and outputs of Kwinana Industrial Area, Australia 74 Table 4.4 Water inputs and outputs of Qijiang Industrial Park, China 75 Table 4.5 Water inputs and outputs of Songmudao Chemical Industrial Park, China 76 Table 4.6 Typical water inputs and outputs of IS networks 78 Table 4.7 Nomenclatures 94 Table 4.8 Input and output data extraction 94 Table 5.1 Profile of interviewees 100 Table 5.2 Summary of the methods of industrial water management in Sri Lanka 105 Table 5.3 Summary of the issues of industrial water management in Sri Lanka 108 Table 5.4 Comparison of the model requirements and enhancements: Conceptual vs context specific models 121 Table 5.5 Selection of water sources and water sinks in Sri Lankan context 124 Table 6.1 Criteria adopted in selecting industrial entities in the selected case study 129 Table 6.2 Details of selected industrial entities 130 Table 6.3 Profile of interviewees 132 Table 6.4 Freshwater consumption – Industrial Entity A 133 Table 6.5 Wastewater generation – Industrial Entity A 134 Table 6.6 Freshwater consumption – Industrial Entity B 135 Table 6.7 Wastewater generation – Industrial Entity B 136 Table 6.8 Freshwater consumption – Industrial Entity C 138 Table 6.9 Wastewater generation – Industrial Entity C 139 Table 6.10 Water quality standards for drinking water and wastewater discharge 141 Table 6.11 Industrial and cooling water requirement of each industrial entity 142 Table 6.12 Availability of treated wastewater supply of each entity after preliminary and secondary treatment 143 Table 6.13 Source and sink relationships between entities A, B and C in the proposed IS network 147 Table 6.14 Limiting water data for water sources 148 Table 6.15 Limiting water data for water sinks 149 Table 6.16 Optimal water exchange network 150 Table 6.17 Reduction of freshwater consumption in the optimal water network 152 Table 6.18 Reduction of wastewater discharge in the optimal water network 153 Table 6.19 Reduction of the environmental impact through optimal water exchange network 156 Table 6.20 Cost details of the existing conventional water network 158 xii Table 6.21 LCCA summary for the existing conventional water network 159 Table 6.22 Cost details of the optimal water exchange network 160 Table 6.23 LCCA summary for the optimal water exchange network 162 Table 6.24 Comparison of cost savings of existing and proposed water networks 163 Table 6.25 Calculation of real rates adopting r7% of change in Production Price Index (PPI) 164 Table 6.26 Results summary of sensitivity analysis 165 xiii LIST OF EQUATIONS Equation Description Page Eq. 1 Freshwater utilised by water sink 90 Eq. 2 Wastewater generated by water source 90 Eq. 3 Treated wastewater from water source to water sink 91 Eq. 4 Objective function 94 Eq. 5 Water balance at sink 94 Eq. 6 Water balance at source 95 Eq. 7 Quality of treated wastewater 95 Eq. 8 Quality of freshwater 95 Eq. 9 Additional constraint ensuring single inlet and outlet streams of TWW from one entity to another 96 Eq. 10 Freshwater utilised by water sink (modified) 122 Eq. 11 Wastewater generated by water source (modified) 122 Eq. 12 Treated wastewater from water source to water sink (modified) 123 xiv LIST OF ABBREVIATIONS Abbreviation Description ADB Asian Development Bank BOD Biological Oxygen Demand BOI Board of Investment CE Circular Economy CE-EIP Circular Economy Eco-Industrial Park CEA Central Environmental Authority CKD Chronic Kidney Disease CLD Casual Loop Diagram COD Chemical Oxygen Demand CPI Consumer Price Index CSR Corporate Social Responsibility CWWT Common Wastewater Treatment DGM Deputy General Manager EIP Eco-Industrial Park ENA Ecological Network Analysis EPZ Export Processing Zone FTZ Free Trade Zone FW Freshwater GPL General Public License GWP Global Water Partnership HR Human Resource IE Industrial Ecology IS Industrial Symbiosis IWM Industrial Water Management IWRM Integrated Water Resource Management LCA Life Cycle Analysis LCC Life Cycle Costing LCCA Life Cycle Cost Analysis LP Linear Programming MILP Mixed Integer Linear Programming MINLP Mixed Integer Non-Linear Programming MRQ Main Research Question NASL National Audit Office Sri Lanka NISP National Industrial Symbiosis Programme NWSDB National Water Supply and Drainage Board PEIP Planned Eco-Industrial Park PLS Plain Language Statement PPI Producer Price Index PV Present Value RIP Retrofit Industrial Park SDGs Sustainable Development Goals SLSI Sri Lanka Standards Institute SNA Social Network Analysis xv SOS Self-Organising Symbiosis TAC Technical Advisory Committee TDS Total Dissolved Solid TOC Total Organic Carbon TSS Total Suspended Solid TWW Treated Wastewater UN United Nations USA United State of America UWW Untreated Wastewater WHO World Health Organisation WW Wastewater ZLP Zero Liquid Discharge xvi LIST OF APPENDICES Appendix Description Page Appendix 1 Semi-structured interview guideline used for Phase II: interviews with industry experts and a sample of transcribed copy 196 Appendix 2 Semi-structured interview guideline used for Phase III: case study and a sample of transcribed copy 212 Appendix 3 Test run results of the model obtained from SageMath software 224 Appendix 4 Coding developed to solve the optimisation problem and the experimental results obtained from SageMath software 225 Appendix 5 Proposed design of CWWT alteration 228 Appendix 6 Life cycle cost analysis for existing conventional water network 231 Appendix 7 Life cycle cost analysis for proposed optimal water exchange network 237 Appendix 8 Sensitivity analysis – calculations and results 242