H2 O Oct Nov Issue 09
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The document provides an overview of the desalination market in the Middle East and North Africa region. It notes that the region currently constitutes the world's largest desalination market, accounting for 50% of global desalinated water production. Desalination remains critical to meet water requirements across the region due to scarce natural water resources. The market has seen strong growth in recent years, driven by rapid population growth and improving living standards. Seawater reverse osmosis technology is increasing its market share in the region. The desalination plant market in the region is expected to earn $15.5 billion in revenue from 2009-2013.
H2 O Oct Nov Issue 09
- 1. EDITORS NOTE Desalination days Publisher Dominic De Sousa Managing Director & Associate Publisher I n the second week of November, Dubai will play host to the fred@cpi-industry.com desalination industrys biggest event the IDA World Congress Editorial Director & Associate Publisher 2009, organised by the International Desalination Association surendar@cpi-industry.com (IDA). The biannual event is being hosted by TechnoPark, the Science and Technology Park under Economic Zones World Editor and is being held under the patronage of His Highness Sheikh anoop@cpi-industry.com Mohammed bin Rashid Al Maktoum, Vice-President and Prime Business Development Manager Minister of UAE and Ruler of Dubai. vedran@cpi-industry.com The Gulf Co-operation Council (GCC) region is made up of some of the most rapidly developing economies in the world, Design and consequently, this region also has some of the highest water rey@cpi-industry.com consumption rates globally per-capita. With negligible natural Head of Digital Services water resources at hand, the Gulf region has relied overwhelmingly on desalination to slake its thirst for water. The region today constitutes the worlds largest desalination market, accounting for 50% of global desalinated water production. Saudi Arabia Webmaster is the worlds largest producer of desalinated water with a capacity of about 鍖ve million cubic troy@cpidubai.com metres a day followed by the UAE at 2.8 million cubic metres a day. Given the signi鍖cance that Database/Subscriptions Manager desalination holds in this region, it is 鍖tting that IDA decided to host the Congress here, and Purwanti Srirejeki | purwanti@cpi-industry.com more speci鍖cally, in the UAE. To commemorate the event, we decided to bring out a special issue on desalination. The issue you ADVERTISING ENQUIRIES Fr辿d辿ric Paill辿: +971 50 7147204 are currently holding in your hands provides a varied (and unique, if I may bravely venture) mix of fred@cpi-industry.com news, features and interviews that examine desalination from different technical, economic, market Vedran Dedic: and social impact standpoints. The chief driver for growth of desalination in the region, as most of +971 50 3756834 the articles inside testify, is rapid population growth. According to a recent MARKAZ report, for vedran@cpi-industry.com the GCC as a whole, the population growth rate (CAGR) between 1990 to 2009, was three per cent; Euro Zone and UK in comparison, the growth rate for India was 1.8% and for China, it was 0.8%. Another common Joseph Quinn, HORSESHOE MEDIA thread running through the articles seems to be a growing acceptance of desalination by Seawater Tel: +44 (0)20 8687 4139 Reverse Osmosis (SWRO). Frost & Sullivan analyst Vivek Gautam notes in his piece that 33.1% of Fax: +44 (0)20 8687 4130 the total contracted capacity during 2005 and 2008 was RO-based, especially in the small capacity Marshall House, 124 Middleton Road plants segment. Improvements in membrane, pre-treatment and energy recovery technologies have Morden, Surrey, SM4 6RW, UK contributed signi鍖cantly to SWROs resurgence in the region. The SWRO plant at Palm Jumeirah North America boasts of the 鍖rst wide-scale use of Ultra Filtration (UF) pre-treatment technology in the region Rakesh Saxena, CPI INDUSTRY and is among the largest of its kind in the world. This issue also features an exclusive interview with North America Branch Bill Mickols of Dow Water & Process Solutions, whose scienti鍖c contributions to RO desalination Tel: +1 905 890 5031 Fax: +1 905 890 5031 helped advance the limits of water 鍖ux and salt rejection to unheard of levels. Richard Stover of GSM: +1 416 841 5050 Energy Recovery examines the evolution of reduction of energy consumption in SWRO plants and rakesh@cpi-industry.com leaves us with some interesting conclusions to mull on. We also have a piece on combating the Red Tide from Pall Corporation while MWH spokesperson John Ords Q&A is an excellent analysis of Published by the economics of desalination. On a slightly divergent note, this issue also has an exclusive story on the largest operating MBR wastewater treatment plant in the Middle East. I hope you enjoy reading our desal special as much as we enjoyed putting it together. Any feedback is absolutely welcome. Head Office PO Box 13700 Anoop K Menon Dubai, UAE Tel: +971 4 3756830 Fax: +971 4 4341906 Get the next issue of Printed by: Excel Printing Press, Sharjah, UAE H2O early! Did you know that H2O is also available electronically? Get a While the publishers have made digitised copy of the magazine before the issue goes for print! every effort to ensure the accuracy of all infor- As a bonus, the digital version includes such features as a mation in this magazine, they will not be held For more details, please access www.cpi-industry.com/digital 4 OCTOBER/NOVEMBER 2009
- 2. Happenings > THE REGION Aquatech bags desal project in Egypt Aquatech to supply design and supply a thermal desalination system for the Abu Qir Thermal Power Plant AQUATECH has been awarded a contract Ratio (GOR) of 8.5 minimum. to design and supply a Multiple Effect Earlier this year Aquatech was awarded Distillation (MED) seawater desalination an industrial wastewater reuse project for a 7.5 system for the Abu Qir Thermal Power chemical facility by TCI Sanmar Chemicals Plant. The client, West Delta Electricity LLC, located at Port Said. The system will Production Company, and consultant be for the treatment and reuse of various PGESCo, speci鍖ed MED technology for wastewater streams generated from the Billion USD. Value of water uninterrupted water supply to boilers after process units. and wastewater projects carefully studying all available desalination The reuse system consists of the patented being executed in Qatar at technology options. High Ef鍖ciency Reverse Osmosis (HERO) present Source: MARKAZ The desalination facility at Abu process which can withstand various Qir comprises of two Multiple Effect impurities such as oil, grease, and organic Distillation with Thermal Vapour Compression (MED-TVC) units; each with a capacity of 5,000 m3/day (net) and will supply 10,000 m3/day of fresh constituents. The system will have a capacity of 8,500 m3/day and recovers over 90% of the water suitable for use within the complex for various processes. Aquatech 300 Billion litres. Annual water usage of Coca-Cola Com- water to the power stations boilers and has previously demonstrated the advantages pany. other users. Aquatechs MED technology of its HERO technology in projects for the Source: IBMs GIO Report: WATER has been developed and improved over recycle and reuse of water from ef鍖uents decades of in-house research and onsite of re鍖neries, power plants, petrochemical experience worldwide and will provide an complexes, oil 鍖eld produced water, and environmentally friendly solution keeping treated sewage, with recoveries exceeding in mind a reduced carbon foot print. 94% in some installations. Aquatechs scope includes design, Aquatech is a global leader in water equipment supply, testing, and puri鍖cation technology for industrial and commissioning of two MED units infrastructure markets with a focus on complete with accessories to produce desalination, water reuse, and zero liquid distilled water within a challenging discharge. The company is headquartered schedule as demanded by the project. in the United States, has of鍖ces throughout The plant will be located near Alexandria, North America, and signi鍖cant presence will use seawater from the Mediterranean worldwide through subsidiaries in Sea to produce pure water with less than 鍖ve mg/l total dissolved solids, and will use plant steam to provide energy to operate the desalination units. The plant is Europe, the Middle East, India, and China. Recently, Aquatech was awarded a contract to design, build, and operate a seawater desalination plant for Indias 鍖rst ultra 1.87 Billion USD. Projected designed for a performance Gain Output mega power project at Mundra in Coastal revenues of GCCs Water and Wastewater treatment Gujarat. The 4,000 MW coal 鍖red plant is equipment market in 2013. owned by Coastal Gujarat Power (CGPL), Source: Frost & Sullivan a Tata Power group company. Aquatech 12 will provide a pretreatment system that includes lamella clari鍖ers followed by two- stage pressure 鍖ltration and a Seawater Reverse Osmosis (SWRO) system that Number of emergency water consists of four streams of SWRO banks, reservoirs being planned for followed by two banks of Brackish Water Muscat governorate. Source: The Oman Observer Reverse Osmosis (BWRO). 6 OCTOBER/NOVEMBER 2009
- 3. COVER STORY: MARKET HIGHLIGHTS Desal overview Seawater desalination remains critical to meet water requirements across the Middle East and North Africa By Vivek Gautam A t present, the Middle East and North Africa Though the current economic environment has delayed several (MENA) region is the largest market for investment decisions, the long term drivers seawater desalination plants. The market has for the growth of desalination remain seen spectacular growth in recent years. More strong in the region. Despite economic signi鍖cantly the growth has not only happened slowdown, GDP of most countries in the MENA region is expected to increase. The in Gulf Cooperation Council (GCC) countries that have region is witnessing rapid population relied on desalination for a long time, but also countries like growth. At the same time, GCC countries Algeria, which has awarded several contracts for large scale are witnessing fast improving living desalination plants. There are various factors that have led to standards and North African countries are suffering from chronic water this shift from historic trend. shortages. These forces are expected to create a sustained increase in demand for desalinated water in the region. With scarce fresh water resources, governments and planning agencies in the region are likely to invest in augmenting desalination capacities to meet soaring water demand. Market size & forecast Frost & Sullivans market analysis indicates that desalination plants market in MENA region earned revenues of $3.79 billion in Desalination Plant Market: Key Market Highlights (MENA), 2008 2008. Of this 18.7%, that is, $710.0 million Note: All 鍖gures are rounded; Source: Frost & Sullivan is the revenue for small capacity plants (Capacity less than 40 MLD) market. Further the region is expected to add an average desalination capacity of 2.70 million m3/day every year during 2008 and 2013. In terms of technology, reverse osmosis is increasing its market share. Of the total contracted capacity during 2005 and 2008, 33.1% is based on RO. This is more signi鍖cant in small capacity plants market. The revenue forecast for a 鍖ve year period from 2009 to 2013 is indicated in the adjacent graph - Revenue Forecasts (MENA), 2008-2013. Competition & success factors The market has attracted numerous new participants in recent years, intensifying competition, particularly in the small Desalination Plant Market: Revenue Forecasts (MENA), 2008-2013 Note: All 鍖gures are rounded; the base year is 2008. Source: Frost & Sullivan capacity plant segment. In such a packed 28 OCTOBER/NOVEMBER 2009
- 4. market, the competitive advantage will rest with the market participants that can better manage project risks and the associated costs. As most of the desalination technologies are relatively mature, solutions provided by the suppliers tend to be similar, which then makes competition a price-based one. Hence, organisational capabilities such as value engineering, strategic sourcing of components and better management of project risks are becoming increasingly important for being competitive on the price front. With very little fresh water available, desalination is likely to continue playing a critical role in overall municipal water supply in the MENA region countries. The desalination plant market in MENA region is expected to earn aggregate revenue of $15.5 billion during 2009 and 2013. The author is Senior Research Analyst, Environmental & Building Technologies Practice, South Asia & Middle East, Frost & Sullivan. He closely tracks the developments in the areas of Water & Wastewater Treatment and Solid Waste Management. Email: tanuc@frost.com OCTOBER/NOVEMBER 2009 29