Saudi Arabia has cancelled a $317 million mega seawater desalination plant, VA Tech Wabag said in a regulatory filing on the Bombay Stock Exchange (BSE).

“The customer has notified all tender participants on 16 December 2024, that the said tender stands cancelled pursuant to their internal administrative procedures,” the company said.

The company was awarded the contract for the 300 million liters per day (MLD) seawater reverse osmosis desalination plant in September from the state-run Saline Water Conversion Corporation (SWCC).

VA Tech Wabag said it is engaging with the customer to understand the reasons behind the decision.

The EPCC contract included the scope of design, engineering, supply, construction and commissioning of the 300 MLD plant, which will be developed on a greenfield site located on the west coast of Saudi Arabia, south of the Red Sea-facing Yanbu Al-Bahr, the company’s statement in September said.

(Source)

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The planned setup encompasses an ammonia Rankine cycle, an organic Rankine cycle, an absorption chiller, a desalination unit, and a proton exchange membrane electrolyzer, resulting in reduced irreversibility and emissions.

The system’s capability is examined concerning exergy, energy, environmental, and economic aspects using Aspen HYSYS software. Furthermore, a comparative study is conducted between different optimization scenarios. According to the attained outcomes, maximizing vapor production requires a reduction in seawater flow.

Additionally, increasing the seawater flow rate is ineffective in the proposed process, as vapor from the desalination unit drives heat transfer. Regarding the optimizations conducted, the most suitable exergy efficiency is found to be 39.27 %, which corresponds to the exergy-power scenario. Moreover, the optimal net electric power, and cooling and heating loads are calculated at 18,255 kW, 4383 kW, and 15,280 kW, respectively; thus, the optimal energy efficiency is 74.51 %.

From economic and environmental perspectives, the optimal cost of energy and CO₂ footprint are 0.76 $/kWh and 0.255 kg/kWh, correspondingly.

(Source)

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Text copieSaudi Arabia has made strides in water desalination, improving efficiency by 80 per cent and slashing costs by 50 per cent in recent years, according to Mansour bin Hilal Al-Mushaiti, the Kingdom’s Deputy Minister of Environment, Water, and Agriculture.

Daily desalination output has surged to 6 million cubic metres, contributing to a total capacity of 11.3 million cubic metres. This leap forward has been made possible by expanding water transmission networks, now spanning over 14,000 km, equivalent to double the length of the Nile River, overcoming challenging terrains to deliver water nationwide.

The Kingdom’s strategic water storage capacity has also seen a significant boost, increasing from 13 million cubic metres in 2016 to over 25 million cubic metres today, ensuring resilience during crises. Al-Mushaiti credited these advancements to robust government policies and private-sector collaboration, which have supported the development of 29 water projects valued at US$7.465 billion, with US$2.133 billion of foreign investment.

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Saudi-listed ACWA Power, the world’s largest private water desalination company, and a leader in energy transition and first mover into green hydrogen, today announced its consolidated financial results for the nine months ended 30 September 2024.

Operating income before impairment losses and other expenses reached SAR 2,365 million, 12.5% higher compared to the same period in 2023 mainly on account of an investment gain in restructuring of a project, along with a capital recycling gain. The Company’s net profit—attributable to equity holders of the parent—reached SAR 1,255 million for the period, 16% higher compared to the same period in 2023 mainly on account of higher operating income partially offset by mainly the impairment loss in a long, forced outage unit.

Marco Arcelli, Chief Executive Officer of ACWA Power, said: „The 26 projects currently in our construction portfolio, the largest in our 20-year history, demonstrates both the speed in realizing our growth through swift financial closes and on the other hand the scale of future cash flows from a robust, diversified and young portfolio.“

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Saudi Arabia faces a severe water scarcity crisis. The country’s annual water consumption reaches 30 billion cubic meters, while it produces only about 2 billion cubic meters of surface water each year. As a result, seawater desalination has become essential for supplying water, especially in urban and industrial areas. Yet, this solution is energy-intensive and largely powered by fossil fuels, which adds both economic and environmental costs. To address these challenges, ATESS has introduced an innovative solar-powered energy storage solution designed to make desalination more sustainable and accessible.

(Source)

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