WATER INDUSTRY SEGMENT REPORT DESALINATION

San Diego, July 2012

Prepared by:

Andreas Fried

Basel Serio

WORLD TRADE CENTER SAN DIEGO

2980 Pacific Highway San Diego, CA 92101 T: (619) 615 0868 F: (619) 615 0876 www.wtcsd.org General Provision

This report was conducted by the World Trade Center San Diego (WTCSD). The scope of this report is to provide information about the water industry segment of desalination. The report will not be, and should not be, considered as an opinion regarding a recommendation for, or the reasonableness of any specific business action. No representations or warranties are provided with respect to the results obtained from use of the analysis or surveys of this report. In no event shall the WTCSD be liable for consequential, special, direct, or indirect damages arising out of use of this material.

To the best of our knowledge and belief, the statements contained in this report are true and correct. Information, estimates and opinions provided to us and contained in the report were obtained from the sources cited, and to the extent analyzed by us are believed to be true and correct. However, no representation, liability or warranty for the accuracy of such items is assumed by or imposed on WTCSD. Opinions in this report are the author’s opinion, and are not the official opinion of WTCSD.

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Table of Contents General Provision ...... 2 Introduction ...... 4 Conversion Measures ...... 4 Desalination ...... 5-6 Industry at the National Level ...... 7 Southern California ...... 7-8 MENA Desalination Industry ...... 8 Power Sector ...... 8 Water Sector ...... 9 Middle East ...... 10-13 North Africa ...... 14-15 Small Scale Projects ...... 15 Trade Shows - Domestic and International...... 16 Trade Publications and Internet Sources ...... 18 Current Desalination Projects ...... 19-33 Bibliography ...... 34

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Introduction

This report is an introductory overview of the desalination (desal) industry. The report focuses on U.S. export to the MENA (Middle East and North Africa) region and India. Water scarcity is an acute and growing problem. Essentially the amount of naturally occurring fresh water in the world is constant – or even declining because of the over-exploitation of non-renewable ground water resources. Demand for water continues to grow as the need to increase agricultural production sucks up available water for irrigation (85% of MENA water use for agricultural use), forcing urban water users to develop new resources. Desalination has been favored as method to increase the water supply. The regional desalination sector has grown into an $8 billion market in the last 5 years. Historically, especially the Gulf (GCC) region has favored large scale projects to boost supply in favor of targeting the high demand and water waste.1 The financial crisis though has opened policymakers eye’s for alternative, less capital intense projects. Campaigns for reduced water usage have also been launched as a method for tackling the region’s water shortage and less affluent countries are looking at smaller-scale desalination projects. The attractiveness of desalination has been reduced due to rising oil prices, putting upward cost pressure on a water supply process that consumes large amounts of energy. Desalination today is an expensive technology, but most of the world's 2,000 desalination plants are currently located in the Middle East where water is in short supply but energy has been cheap. Albeit, the low-cost energy has been due to energy subsidies obtained by the mostly state owned utility companies operating desalination plants in the MENA region. Desal plants are frequently built in connection with power stations. The increase in electricity prices has actually recently spurred the power plant components of desal plants. The latest desalination trend is that the increase in energy prices has made it possible for bidders to increase the power plant component with increased excess power revenues, to subsequently ‘subsidize’ the desalinized water price offered in tenders.

Firstly, this paper will look briefly at the desalination industry in general; secondly, we will examine current trends and forecasts for the industry per region. The paper concludes with useful tradeshow and resource information as well as a list of current desal projects.

Conversion Measures 1 m3 = 220 Imperial Gallons (IG) 1 Ha = 2.47 Acres

1 IG = 0.0045 m3 1 Acre = 0.405 Ha

1 m3 = 264 Gallons (G) 1 Liter = 0.264 Gallons

1 G = 0.0038 m3 1 G = 3.785 Liters

1 IG = 1.2 G 1 IG = 4.54 Liters

1 http://www.gulfbase.com/site/interface/NewsArchiveDetails.aspx?n=98458

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Desalination

Because only 1 percent of the Earth's water is fresh, the oceans are an obvious way of supplementing the fresh-water supply. To be potable (drinkable), however, salt and other chemicals must first be removed from the sea water. This process of salt removal known as desalination has been practiced since ancient times.

The most common desalination processes used today are distillation and membrane processes, each accounting for about half the installed global desalination capacity. Historically, distillation technologies have dominated the seawater desalination market, partly because they lend themselves well to co-generation of water and power, partly because energy subsidies favored these more energy-intensive technologies, and partly because of the lower reliability of earlier membrane technologies. However, most new desalination plants now use membrane technologies, in particular reverse osmosis (RO). This is mainly due to reductions in the costs and the energy intensity of reverse osmosis, as well as improvements in its reliability. Reverse osmosis of seawater requires much less energy than distillation processes.2

Looking forward, it is clear that membrane desalination is going to continue to pull away from thermal desalination. Although multi-stage flash and multi-effect distillation represented around 26% of the market during the period 2000- 2009, their market share is expected to amount to around 9% in the period 2010-2016. This reflects two factors. First, the desalination market outside the Gulf is expected to grow faster than the desalination market in the Gulf region, where thermal desalination is more frequently used. Second,

2 The World Bank: Seawater and Brackish Water Desalination in the Middle East, North Africa and Central Asia

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 5 of 35 membrane desalination is making in-roads into the Gulf market – a trend which is likely to accelerate with the move towards independent water and power projects in Kuwait and Dubai, as well as greater consciousness about energy efficiency due to rising energy prices.3

Overall global desalination capacity is expected to grow from 68.3 million m3/d at the beginning of 2011 to 129.9 million m3/d by the end of 2016.4 For 2010 and 2011 though, new capacity is on the decline, with 4.7 million m3/d and 6.8 million m3/d respectively - well below the market peak of 7.5 million m3/d achieved in 2007. There are a number of factors behind the cooling of the desalination market. These include:

 The completion of major desalination plant building programs in Algeria, Spain, and Australia.  The weakness of the real estate market in the UAE, Southern Spain and the Western U.S.  Project delays and postponements related to a variety of issues such as elections, financing difficulties, heavy rains, and administrative issues.

Increased energy prices in 2011 will probably continue to restrain the market recovery.5

3 http://www.globalwaterintel.com/archive/11/7/market-insight/desalination-market-returns.html 4 GWI: Desalination Markets 2010 5 http://www.globalwaterintel.com/gwi-downgrades-desalination-market-expectations-201011/

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Industry at the National Level

The U.S. desalination industry is strongly concentrated in the region dependent on the Colorado River and Lake Mead for its water supply. Florida is also looking for desalination as a water supply technology. Perhaps one of the best opportunities to reduce the capital and operating costs of a seawater desalination plant is to co-locate the desalination plant on or adjacent to a power plant. Especially for regulatory approval purposes this strategy has been pursued in the U.S.6 The U.S. will be spending $3,330 million per year on building and operating desalination plants, suggests a new report by Global Water Intelligence (GWI). This represents a 191% increase on current expenditure.

There are a lot of major multi-national corporations that have desalination subsidiaries. Some of the largest U.S. companies include General Electric, Dow Chemical, and Hydronautics. GE Water has a long history in the Middle East, first operating in the Saudi water sector in the 1930s. It has a base in Dubai and the company is involved in many desalination and wastewater plant across the region. GE Energy recently opened its second USD$10 million water technology centre in Saudi Arabia aimed at providing water solutions across the region.7

Southern California The Southern California region is strong when it comes to water technology and desalination. As of April 2011, an estimated 3,000 people work for companies in the San Diego area supplying equipment or logistical support for desalination plants, earning the industry upwards of $350 million in annual revenues. Many of these companies also supply other related manufacturing segments. The Californian coast may have about 20 desalination plants in a few years, but most of them are still in the early planning stage.8 The regulatory approval process is rigid, especially with regards to environmental protection. Proposed desalination plants must win approval from city and county governments as well as the Public Utilities Commission in the case of investor-owned utilities. The largest project, Poseidon Resources’ Desal Plant in Carlsbad, spent almost a decade in the State and Federal approval process, receiving final go-ahead in February 2011.9

In California, an estimated 40 percent of the cost of desalination is energy to run the plant. Lobbying by companies that stand to gain financially from desalination has helped earn widespread support from California lawmakers. Poseidon has reportedly spent around $60 million on engineering and attorney fees on its Carlsbad plant before a single spade of dirt has been overturned. A group of California water

6 Neil Callahan: Integration of Power Generation and Water Desalination Operations 7 http://www.ge.com/mea/docs/brochure_sa_english.pdf 8 http://www.dcbureau.org/201103081301/Natural-Resources-News-Service/the-water-business-desalination- means-big-business-to-california-industry.html 9 http://www.carlsbad-desal.com/

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 7 of 35 companies and public agencies formed the non-profit CalDesal last year to educate and lobby for desalination.10

MENA Desalination Industry

Power Sector Desalination in the Middle East is closely linked to the power sector. We will therefore take a moment to look at the MENA power sector. Due to population and industry growth, the power sector in MENA has a demand that is growing at 5-7% annually. To meet this increasing demand; new power plants, increased efficiency, improved transmission systems and new energy sources are required. The MENA region has 146 GW of installed electrical capacity, a further 120GW of new capacity and 30 GW of replacement capacity will be required from 2005-2020. Electricity is heavily subsidized in most countries and as a result this has led to inefficient energy use. Electricity bills are often unpaid in some MENA countries; almost half the electricity consumption was unpaid or illegally connected in 2005. Because of the geography of the region, with sparse population, many communities exist ‘off the grid’. In recent years, Independent Power Producers (IPPs) have been successfully encouraged, but there is still room for more private electricity producers. The current challenge in the MENA region is diversifying the energy mix beyond oil as a sizable proportion of the generation capacity is nearing the end of its lifespan and capacity demands are rising. The high power demand matches the high water demand and much work will have to be done to stabilize the resources of both.

10 http://www.dcbureau.org/201103081301/Natural-Resources-News-Service/the-water-business-desalination- means-big-business-to-california-industry.html

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Current and projected desal markets by country or region.11

Water Sector The region relies heavily on water for agriculture which comprises 85% of its water use so combating the continued drying of the land mass will be a priority. The climate will become drier and hotter with less rainfall and increased droughts. Water shortages will be experienced by 80-100 million people before 2025. This puts water supply on top of the agenda of the region’s leaders. Due to recent infrastructure investments, water supply has increased to allow 75% of the MENA population access to clean water and improved sanitation. MENA already leads the world in desalination technology. The region will require 6% per year water supply increase from desal plants. The majority of desalination plants use thermal desalination technologies and large quantities of fossil fuel are required for the distillation process. Even in small countries such as the UAE, Qatar, Kuwait, Israel and Jordon the pumping distances have been a barrier, due to pipe leakages and poor water management in general. Furthermore, as a result of poor regulations, desalination plants in the region have polluted the Gulf seawater by discharging hot wastewater directly into the Gulf.

Like the power sector, private water utilities are struggling to perform due to an unreasonable subsidization of tariffs in the public sector. Only two countries in the region have private water utilities that can cover their operational and management costs. In MENA public spending on water accounts for 1-5% of the GDP but these investments have not been cohesive. The World Bank has heavily funded the

11 GWI: Desalinisation Markets 2010

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 9 of 35 region’s water development. The Bank financed new water projects totaling $229.5 million in 2008 and $123 million in 2009. Iran, Saudi Arabia, the UAE, Egypt and Kuwait accounted for around 70% of energy and water investments in the last five years. The total MENA investment in power and water was about $60 billion during this period. Government owned utilities will continue to play the key investment role as only 40% will be funded by the private sector.12

Capacity increase during the 2000s.13

Middle East The power and water desalination Industry in the Gulf (GCC) nations is characterized by a limited source of supply struggling to cater to the escalating demand fuelled by increasing population and improved standards of living. Spurred by a buoyant economy and population growth, UN-FAO forecasts over $250 billion will be invested in GCC water and desalination projects, over the next decade. Whilst privatization occupies the centre stage in the overhauling process of power and water sector, the initiatives towards alternative energy sources will enable GCC nations to diversify their economic growth from predominantly oil based economies. New power plants often include desal components. Faced with the extreme scarcity of groundwater, the GCC nations are focusing on increasing supply of water through desalination and waste water treatments. The regional governments are also educating the population on water conservation.14 In the GCC region, commonly more than 75% of water consumption is in the agricultural sector, around 15% for public purposes and less than 2% for industrial purposes. Hence, potential for the lower-quality reused wastewater (which is sufficient for irrigation but not for public use) is larger than the potential for desalination. So far though, farmers have been hesitant to accept reused wastewater for food-product irrigation.15

12 Chantel McGrath: Renewable Desalination Market Analysis 13 Global Water Intelligence: Vol 10, Issue 10 (October 2009) 14 Research and Markets: GCC Power & Water Desalination Industry Overview 2010 15 http://www.fao.org/nr/water/aquastat/countries/untd_arab_em/index.stm

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 10 of 35 Saudi Arabia Saudi Arabia relies on seawater desalination for 50% of its water supply and has over 30 operating desalination plant. Saudi Arabia has 4,000 km of water pipelines, but this network is under pressure owing to increased water demand. Current projects include a new pipeline in Saudi Arabia to supply the city of Taif near the Red Sea. Between 2006 and 2016 approximately 20 plants will be built or planned, with over $5 billion of annualized investment in desalination (2005-2015). Environmentalists have pushed for increased use of solar power in desalination, but the government has continued to rely on oil and gas as energy sources. The Saudi Arabians plan to invest USD$170 billion in the energy sector over the next five years, requiring private sector investment to satisfy water and electricity demands for the country. Of this investment, $90 billion will come from Saudi Aramco (national oil company) and will primarily be invested in oil production.16

The first large scale renewable desal plant is an IBM joint venture with King Abdulaziz City for Science and Technology (KACST), the Kingdom’s main research and development institute, building a solar powered desalination plant in the city of Al Khafji in the northeast of the country. The plant will be powered by ultra-high concentrator photovoltaic (UHCPV) technology and would provide up to 30,000 m3 of potable water a day to 100,000 people. The KACST/IBM joint research focuses on improving polymeric membranes through nanoscale modification of polymer properties to make desalination much more efficient and much less costly.17

Shoaiba Barge Seawater Reverse Osmosis (SWRO) plant is the largest in the world (completed in 2008), producing 50,000 m3/day using Dow Film Tec membrane elements which have helped speed up the production of treated water. The project was designed by WETICO Saudi Berkefeld. Saudi Arabia’s Saline Water Conversion Corporation (SWCC) purchases the water.18

Doosan Heavy Industries of South Korea has won a US$ 1.46 billion contract to supply the Ras Azzour desalination plant, which, at a capacity of 228 MIGD (1,036,500 m³/d), will be the largest in the world. The project, for the Saline Water Conversion Corporation, will be a hybrid 160 MIGD (727,000 m³/d) evaporation and 67.5 MIGD (307,000 m³/d) reverse-osmosis plant. It will supply water from the Gulf to 3.5 million people in the Riyadh area. The project was delayed during the financial crisis as one partner of the proposed consortium withdrew. Doosan will now carry out design, manufacturing, installation, and commissioning of the entire project, which is scheduled to be completed by the end of 2014. It will be integrated with a 2,400 MW oil-fired power plant.19

The United Arab Emirates (UAE) The UAE is the 2nd largest producer of desal water. The UAE relies on 70% desalinated water to supply the country and Kuwait. The UAE has invested a total of $50 billion in power and desalination during the

16 Chantel McGrath: Renewable Desalination Market Analysis 17 http://www.ibm.com/news/sa/en/2010/03/31/z337573t40642u34.html 18 http://msdssearch.dow.com/PublishedLiteratureDOWCOM/dh_0259/0901b80380259476.pdf?filepath=liquidseps/ pdfs/noreg/609-00619.pdf&fromPage=GetDoc 19 http://www.desalination.biz/news/news_story.asp?id=5480&channel=0

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 11 of 35 past 10 years and they plan to build three more desalination plant. Dubai has embarked on a mission to more than treble its desalinated water capacity over the next eight to 10 years. It will invest up to $20 billion in five power and water projects.20 The UAE will be spending $3,2 billion per year (2011-2016) on building and operating desalination plants suggests a new report by Global Water Intelligence (GWI). This represents a 305% increase on current expenditure. UAE currently has 8,885,366 m3/d of contracted desalination capacity, but this will rise to 13,700,138 m3/d by 2016.21

Kuwait Several desal plants are in operation and some under construction. A recent project is the pgrading of the Doha desal plant, a $750 million project. In addition, many smaller sites are added. Yearly, up to ten MSF plants each with a capacity of around 60 m3/d are completed.22 Kuwait’s Ministry of Electricity and Water (MEW) issued a tender at the beginning of 2010 for a new power and desalination station to be located at the Az-Zour North site. The scope of work encompasses the engineering, procurement and construction of the 463,692 m3/d and 1,500MW plant, followed by a 7-year period of operation and maintenance. It’s scheduled for completion in 2013. Kuwait authorities have had previous problems with attracting bidders for their large-scale projects. One reason has been that negative cash-flow is a frequent occurrence for contractors undertaking large MEW-funded power and water projects due to tough tender requirements.23

Qatar Qatar has limited and declining groundwater and is investing in desal to cover the supply shortage. The country has one of the longest-standing desal programs in the Middle East, with considerable experience in the sector. The largest desal IPWW is at Ras Laffan industry complex. It is owned by the Qatar Electricity & Water Company (QEWC) and produces 180,000 m³/d. The country has around 1.4 million m3/d of desal water capacity.24 Kahramaa, Qatar’s General Electricity and Water Corporation is currently tendering for construction of a 60 MGD desal plant.25 Furthermore, Qatar is aiming to build up its water reserves so they can meet the country's needs for a week in an emergency. Existing desalinated water reserves can last only one-and-a-half days in an emergency. The country hopes to be ready with the increased capacity by 2012, according to the Qatar General Electricity and Water Corporation (Kahramaa).26Plans have also been floated to combine nuclear and desal plants, something that probably will be evaluated again after the nuclear disaster in Japan.27

20 Chantel McGrath: Renewable Desalination Market Analysis 21 GWI: Desalination Markets 2010 22 Mohamed Al-bahou: Desalination experience in Kuwait 23 http://www.globalwaterintel.com/archive/11/3/general/kuwait-offers-new-flexibility-az-zour-north- complex.html 24 http://www.desalination.biz/news/news_story.asp?id=5323&channel=0 25 http://www.meed.com/sectors/water/kahramaa-to-launch-tender-for-desalination-plant/1972990.article 26 http://www.arabianbusiness.com/qatar-eyes-water-desalination-plant-expansion-305936.html 27 http://www.ooskanews.com/middle-east-africa/qatar-desalination-among-projects-planned-nuclear-techology

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 12 of 35 Bahrain More than 65% of water supply is from desalination, but demand exceeds supply as the population grows. The Ras Abu Jargur RO-desalination plant has been expanded during the 2000s.28 Bahrain-based utility Energy Central Co (ECC) started construction of the Durrat Al Bahrain site in 2009, where the company is building a seawater RO desalination plant with an ultimate capacity of 32,000 m³/d.29

Jordan Jordan entered the world’s top 20 desal markets in 2010.30 Jordan has several small desal plants. It plans a major $125 million project with a Red Dead Sea Conveyor (RDSC), taking seawater for RO desalination to the Dead Sea. This mega project would aim to restore the Dead Sea’s water levels. The future of the project is in doubt; the amount of brine has been estimated to be 1,050 MCM/y and the marine environment of the Gulf of Aqaba is very fragile.31

Iraq There are two new desal plants near Basra planned and tendered. There are also plans for small-scale solar-powered desal plants for rural areas.

28 http://www.desalination.biz/news/magazine_article.asp?id=4702&title= 29 http://www.desalination.biz/news/news_story.asp?id=4775 30 http://www.globalwaterintel.com/archive/11/7/market-insight/desalination-market-returns.html 31 Hani Abu Qdais: Environmental impacts of the mega desalination project: the Red–Dead Sea conveyor

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North Africa

Algeria Algeria has significant indigenous energy resources and has been involved in desalination for many years but mainly in connection with oil and gas development projects for industrial use. Most of the population lives near the coast, but there are also small inland towns and villages with access to brackish water. The government has recently built some small desalination plants in the vicinity of Algiers as a temporary measure pending the construction of larger seawater reverse osmosis plants. The country has two recently built desal plants. There are plans for series of plants with capacities ranging from 100,000 m3/d to 500,000 m3/d.

Morocco Morocco has a semi-arid climate and the country is rapidly experiencing a decrease in available water. Without implementing desalination techniques water scarcity will continue. The country entered the world’s top 20 desal markets in 2010.32 Morocco has access to more than 3,500 km of coastline. Desalination has, however, been impeded by the fact that Morocco imports 95% of its energy, as plant require a considerable amount of energy to operate. The Office National de l’Eau Potable (ONEP - National Office of Potable Water) and the Cherifien Office of Phosphates (COP) have made considerable efforts to implement desalination plants in the south of the country. The current national production capacity from desalination is 30,000 m3/day.

ONEP operates the country’s largest desalination plant in Laayoune. The Laayoune Seawater Reverse Osmosis Plant is conventionally powered and has a capacity of 7,000 m3/day. ONEP chose Agadir for its first privately financed desalination project in 2007. The plant will be located on Morocco’s Atlantic coast and will produce 45,000m3/day of desalinated water when finished.

The Secrétariat d’Etat chargé de l’Eau et de l’Environnement (SEEE) has recently completed a nationwide study on long-term desalination strategy. Although desalination has traditionally been confined to small- scale applications in Morocco, approximately 70,000m3/day of new capacity is under planning and yet to be tendered. The study also address how to approach the development of a large, new desalination plant in the Casablanca region, with a proposed capacity of around 685,000m3/day. Morocco has a large potential for wind and solar desalination technologies, and thus far, some small-scale projects have demonstrated this potential. Moreover, recently completed wastewater treatment facilities are seen as a project formula that can be replicated for future desal plants.33

Tunisia Tunisia has four desal plants in operation, and the government had publicized plans to build 14 new RO desal plants. The unrest might impact these plans. The country’s desal capacity is set to increase to 200,000 m³/d during the next five years and 500,000 m³/d by 2025.

32 http://www.globalwaterintel.com/archive/11/7/market-insight/desalination-market-returns.html 33 Chantel McGrath: Renewable Desalination Market Analysis

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 14 of 35 Tunisia has gained very useful experience in brackish water desalination using both reverse osmosis and electro-dialysis. These plants are located in the south of Tunisia, which is an arid zone. Additional plants are planned; such as the first large seawater reverse osmosis desalination plant at Jerba.34 The concession to build and operate a 50,000 m3/day plant at Jerba is tendered by the Tunisian Government. After a pre-qualification process, three candidates have been selected.35

Egypt A 35,000 m3/d desal plant on the Sinai peninsula is in operation since 2006, with an ongoing expansion project. There are plans for a new larger plant in Hurghada and at the West Gulf of Suez. Egypt will be spending $393.8m per year on building and operating desalination plants suggests a new report by Global Water Intelligence (GWI). This represents a 120% increase on current expenditure. Egypt currently has 652,024 m3/d of contracted desalination capacity, but this is expected to rise to 1,564,224 m3/d by 2016. During that time the cost of operating existing plants and the new plants that come on line will rise to $172.0m, compared to $90.4m in 2010. These projections were made in late 2010 just prior to the recent unrest, and are therefore subject to revision.36 In regards to smaller scale projects, Ridgewood Egypt has provided over 20 local desalination plants, with capacities ranging between 500 and 6,000 cubic meters on a build, own and operate basis.37

Small Scale Projects Various small-scale renewable desalination projects have been conducted in the MENA region over the past twenty years. A hybrid MSF-RO system driven by a dual purpose solar plant was installed in Kuwait which produces 25m3 of water per day. Pilot projects for solar pond collectors have been carried out in Abu Dhabi with a 120m3/day plant. In Saudi Arabia a PV-RO brackish water plant was installed and connected to a solar still with a production of 5m3/day. The feed water of the solar still is the blow down of the RO unit (10m3/day). A wind powered brackish water plant was piloted in Jordan and shown to be cheaper than diesel engine brackish water systems. These were all small-scale projects that have contributed to the general consensus that renewable desalination is a feasible option in the Middle East. The most popular combination is MEB with thermal collectors and RO with PV technology. Solar technology is best suited to remote, off-grid communities. Use of renewable energy is more popular in academic circles and at test sites, but has not been as popular with decision makers, who concentrate on large fossil-fueled desalination plant to provide potable water to large populations.38

34 The World Bank: Seawater and Brackish Water Desalination in the Middle East, North Africa and Central Asia 35 http://www.eib.org/projects/pipeline/2009/20090714.htm 36 GWI: Desalination Markets 2010 37 http://www.energyrecovery.com/index.cfm/0/0/41/17-Hurghada-Desalination-Plant-Egypt.html 38 Chantel McGrath: Renewable Desalination Market Analysis

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 15 of 35 Trade Shows - Domestic and International

The International Desalination Association (IDA) plans to hold their 2011 conferences in Dubai, Algiers, China and Antigua. Global Water Intelligence also convenes seminars around the world.

 06/04/2011 to 08/04/2011, Tianjin, China

2011 Desalination and Water Reuse International Forum

http://www.2011desal.org/english/index.html

 April 18-19, 2011, Berlin, Germany

Global Water Summit 2011

http://www.watermeetsmoney.com/

 27 Apr 2011 to 29 Apr 2011, Venice, Italy

ICEE - International Conference on Energy and Environment 2011

http://tradeshow.free-press-release.com/15337,icee-international-conference-on-energy-and- environment-2011.html

 17/04/2011 to 20/04/2011, Riyadh, Saudi Arabia

ARWADEX 2011 - International conference and exhibition on Water Desalination in the Arab Countries

http://www.arwadex.net/Defualt_en.aspx

 April 23–26 2012, Barcelona, Spain

Desalination for the Environment – Clean Water and Energy Conference

http://www.desline.com/BarcelonaFlyer.pdf

 2 May 2011 - 5 May 2011, Doha, Qatar

Project Qatar 2011 – Environment and Construction Trade Show

http://tradeshow.free-press-release.com/15338,project-qatar-2011.html

 May 29-31, 2011, Jeddah, Saudi Arabia

Gulf Environment Forum - most prestigious environmental event in the region

http://www.gulfenvironmentforum.com/

 Jun. 15-18, 2011, Oran, Algeria

SIEE Pollutec Algeria 2011 - Algeria’s only event for water industry professionals

http://www.siee-pollutec.com/fr/

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 16 of 35  July 18-21, 2011, Miami Beach, FL

AMTA/SEDA 2011 Joint Conference & Exposition “Membranes are the Solution”

http://www.membranes-amta.org/pdfs/2011MiamiExhibitorSponsorship.pdf

 04/09/2011 to 09/09/2011, Perth, Australia

IDA World Congress

http://www.idadesal.org/

 2nd - 3rd October 2011 - Doha, Qatar

GCC Power and Water Desalination Summit 2011

http://www.fleminggulf.com/utilities/middle-east/gcc-power-and-water-desalination-summit- 2011

 Mar. 6-9, 2012, Zaragoza, Spain

SMAGUA 2012 – Water Tradeshow

http://www.feriazaragoza.com/

 September 29-October 3, 2012, New Orleans, Louisiana

WEFTEC 2012, Largest Annual Water Quality Exhibition in the World. 

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 17 of 35

Trade Publications and Internet Sources

This is a listing of the leading information sources. Each of these sources contains further links to local partners and resources.

 Global Water Intelligence International Water Industry Analysis and Project Tracking: http://www.globalwaterintel.com/  Water Sciences and Technology Association (WSTA) GCC Water Industry Association: http://www.wstagcc.org/  International Desalination Association http://www.idadesal.org/  D&WR The International Desalination & Water Reuse Quarterly industry website: http://www.desalination.biz/  Desalination Directory Online http://www.desline.com/  World Water Council http://www.worldwatercouncil.org/  International Water Association http://www.iwahq.org/Home/  Water and Waste Digest http://www.wwdmag.com/

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 18 of 35

Current Desalination Projects

Below follows a up to date list of the world’s desalination projects.

Project Country Status Bejaia Algeria Conceptual Stage Beni Saf Algeria In construction Cap Djinet Algeria In construction El Oued Algeria Planned El-Tarf Algeria Conceptual Stage Fouka (fomerly Douaouda) Algeria In operation Hamma Algeria In construction Jijel Algeria Conceptual Stage Kahrama Algeria In operation Mactaa Algeria Contract awarded Mostagenem Algeria In construction Ouargla Algeria In construction Oued Sebt Algeria Conceptual Stage Skikda Algeria In construction Souk Tleta (formerly Tlemcen-Sidna Ouchaa) Algeria In construction Tamman Rasset (formerly Ain Salah) Algeria Awaiting Tender Ténès Algeria Pre-construction Tindouf BWRO Algeria Awaiting Tender Tlemcen-Hounaine Algeria In construction Touggourt Algeria RFP issued Crocus Hill BWRO Anguilla Contract awarded Balashi (formerly Bubali) Aruba Contract awarded ACT (Canberra) Australia On hold Albany Seawater Desalination Plant Australia Conceptual Stage Brisbane - Kawana Australia Abandoned Brisbane - Marcoola, QLD Australia On hold Brisbane – North Stradbroke Island Australia Abandoned Brisbane – South Stradbroke Island Australia Abandoned Brisbane River (Brisbane), QLD Australia Abandoned Brows LNG SWRO Australia Conceptual Stage Cape Riche Australia Prequalification Ongoing Carmichael Mining Project Australia EIS Underway Christie Beach Wastewater Treatment Plant Upgrade Australia Pre-feasibility Curtis Island LNG Australia Accepting General Interests

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 19 of 35 Darwin, Northern Territory Australia Abandoned Denmark Seawater Desalination Plant Australia Conceptual Stage East Collie River, WA Australia Feasibility study in progress Esperance, WA Australia Planned Eyre Peninsula, SA (formerly SA Ceduna) Australia Feasibility study in progress Hunter Valley Desalination Australia Conceptual Planning Stage Kwinana (Perth) Australia In operation Lytton (Brisbane River mouth), QLD Australia On hold Miriamvale QLD Australia In construction Oakajee Port & Rail Desalination Plant Australia Awaiting RFP Olympic Dam (Upper Spencer Gulf) Australia Feasibility Study Ongoing Onesteel Whyalla Plant Australia Contract awarded Onslow Water Supply Scheme Australia Conceptual Stage Port Germein Australia Conceptual Planning Stage Port Stanvac Australia In construction SE Queensland (possibly Caboolture) Australia Abandoned Seabird to Jurien coastline (formerly Yanchep, WA) Australia On hold Sino Iron Project Australia In construction Southern Seawater Desalination Plant expansion Australia Planned Sydney Australia In construction Toukley Desalination Plant (formerly NSW Wyong) Australia Conceptual Planning Stage Tugun Gold Coast expansion Australia Reserve Option Tugun, Gold Coast Australia In construction Walpole Seawater Desalination Plant Australia Conceptual Stage Wellington Dam, WA Australia Planned West Pilbara Water Supply Scheme augmentation Australia Planned Wonthaggi, (Melbourne, Victoria) Australia Contract awarded Blue Hills expansion (formerly Arawak Cay) Bahamas Contract awarded Winton Bahamas On hold Ad Dur Bahrain Contract awarded Ad Dur 3 Bahrain Expected 2012/2015 Bahrain Petroenergy Complex (BPECO) Bahrain Progress Expected Soon Durrat Al Bahrain Bahrain In construction Hidd IWPP Bahrain In operation Barbados Barbados On hold Tynes Bay Bermuda In operation Niterói SWRO Brazil RFP issued Esterhazy New WTP, SK Canada Early Development Stage Frank Sound, Grand Cayman Cayman Islands In operation Agbar SWRO project, Copiapó Chile Cancelled AguasMin Chile Feasibility Study Ongoing

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 20 of 35 Antofagasta Chile Contract awarded Arica Chile In Dispute Atacama Sacyr Chile Conceptual Planning Stage Central Castilla (formerly Cerro Castilla) Chile License Granted Cerro Negro Norte Chile Awaiting Tender Chuquicamata Chile On hold Collahuasi Mine Chile Impact Assessment Copiapó, MOP plants Chile Awaiting Feasibility Studies Desaladora Sur, Antofagasta Chile In planning El Morro Chile Prequalifies Named Esperanza Chile Contract awarded La Chimba Chile Contract awarded Mantoverde copper mine Chile Prequalification Minera Candelaria Chile Contract awarded Minera Escondida Chile Preferred Bidder Announced Punta Totoralillo Chile In permitting White Mountain Titanium Chile Awaiting Licence Baosteel Group Corporation, Zhanjiang China Awaiting Approval Cangzhou Coastal Port Chemical Industry Zone 2 China Abandoned Caofeidian Expansion China In construction Changxing Island Economic Zone China MOU Designed Dalian City China In construction Fujian Coal Group China Early Conceptual Stage Guohua Cangdong Power Company China In construction Huangdao, Qingdao city China Contract awarded Huludao, Liaoning China In operation Laoting Desalination Project China Construction Delay Lubei, Wudi county, Binzhou city, Shandong province China In construction Qingdao China Contract awarded Qingdao Soda Ash (formerly Qingdao City, Shandong) China In construction Tangshan Sanyou Group (formerly Hebei Province) China Abandoned Tianjin China In construction Tianjin China In construction Wenling City, Zhejiang Province China Contract awarded Xiangshan County, Ningbo City, Zhejiang Province China Contract awarded Yantai City China Abandoned Zhanjiang Project of Baoshan Iron & Steel Co., Ltd. China Planned Zhejiang Zhoushan and Guangdong Nan’ao China Planned Zhoushan City (Liuheng Island) in Zhejiang Province China In construction Zhoushan Power Plant China Planned Guanacaste Costa Rica Developers in Negotiations

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 21 of 35 Episkopi-Limassol Cyprus In construction Kümkoy, Northern Cyprus (formerly Güzelyurt) Cyprus Contract awarded Larnaca Cyprus In construction Mobile plant, Yermasoyia, Limassol Cyprus Abandoned Paphos Cyprus Contract awarded Pre-engineered desalination unit Cyprus Abandoned Temporary floating desal plant, east of Limassol Cyprus In operation Vasilikos Power Station Cyprus In construction Venus Rock Development, Paphos Cyprus Prequalification Process Djibouti City Djibouti Contract awarded Abu Qir Egypt Contract awarded Hurghada Egypt Awaiting Advisory Tender Mirage Makadi Egypt In operation North Sinai Egypt Awaiting Advisory Tender Red Sea, Sinai and Matrouh desalination projects Egypt Prequalification Stella Di Makadi Egypt In operation West Gulf of Suez Egypt Awaiting Advisory Tender Nungua Ghana Planned Nungua SWRO, Accra Ghana Contract awarded Greek Islands (formerly Cycladic Islands) Greece Awaiting RFP Tseung Kwan O Hong Kong Early Conceptual Stage Chennai (Ennore) India Presumed online Chennai (Minjur) India Pre-construction Chennai 3 India Awaiting Consultancy Bids Chennai Nemmeli India Contract awarded Dahej SEZ SWRO India Awaiting Water Purchase Gujarat India In operation Karaikal, Pondicherry India Four Companies Shortlisted Krishnapatnam Port, Andhra Pradesh India Abandoned Kutch (FOKIA) India Contract Awarded Kutch (GIDB) India Under Construction Mumbai India Project Delayed Mumbai 2 India Early Conceptual Stage Mundra Port SEZ expansion India Awaiting Tender NIOT Chennai India Bids submitted Port Blair, Andaman and Nicobar Islands India Pre-RFP Tata’s Mundra Ultra Mega Power Project India Contract awarded Tuticorin, Tamilnadu India Planned Vadinar refinery, Gujarat India In operation Ancol Desalination Project Indonesia In operation Asalouyeh Iran Contract awarded

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 22 of 35 Asalouyeh Power Station Iran Planned Assalouyeh Iran Planned Bandar Abbas SWRO Iran Under Negotiation Bushehr Iran On hold Charak Port SWRO Iran RFQ Issued Kerman Iran Planned Kharg Island SWRO (rehabilitation) Iran Planned Kish Iran Bids Under Evaluation Kish MED Plant Iran Contract awarded Lengeh Port SWRO Iran Awaiting Bids Pars Economical Energy Zone Iran Prequalification Ongoing Pars Site 2 – Assalouyeh (Bushehr) Iran Planned Qeshm Island (Hormozghan) Iran Planned Qeshm SWRO Iran Shortlist announced Ramchah SWRO, Qeshm Island Iran Awaiting Bids Salakh Village SWRO, Qeshm Island Iran Awaiting Bids West Bandar Abbas (Hormozghan) Iran Contract awarded Youngi Village SWRO Jask City Iran Awaiting Tenders Zahedan BWRO Iran Contract awarded Dublin Region Ireland Planned Ashdod Israel Contract awarded Ashdod (Paz Oil Company) Israel Planned Ashdod Municipality Plant Israel Contract awarded Ashkelon, Hadera and Palmachim Israel Contract awarded Ashkelon, Palmachim and Hadera expansion Israel Feasibility study in progress Containerised desalination plants Israel Planned Dan Region Association Israel Planned Eilat Ashkelon Pipeline Company (EAPC) desalination plant Israel Planned Five New Plants Israel Conceptual Stage Granot expansion Israel Approved By Government Hadera Israel Approval Delayed Hadera Industrial Zone Israel Planned Hadera inland Israel Planned Jordan Valley BWRO Israel RFEI Issued Kfar Masaryk Israel Project in Development Lahat Israel Final Approval Received Lahat site near Ashkelon Israel In construction Ma’agan Michael Israel Hydrological Survey Ongoing Red-Dead Sea Canal project Israel Feasibility Study Ongoing Rishon Le Zion Israel Project Under Review

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 23 of 35 Sabha Israel Planned Sabha expansion Israel Planned Soreq (formerly Shafdan) Israel In construction Soreq 2 Israel Approval Received Temporary desalination plants Israel Planned Timna Israel Planned Western Galilee Israel Conceptual Stage Vulcano, Aeolian Islands Italy Awaiting RFP Aqaba Jordan In dispute Jordan Red Sea Project Phase 1 Jordan Awaiting Bids Aktau SWRO Kazakhstan Feasibility Study in Progress MAEK Kazatomprom Power Plant Kazakhstan Presumed online Az-Zour North Kuwait Abandoned Az-Zour North 1 IWPP Kuwait Bidder Announced Az-Zour North Stages 2-5 Kuwait Conceptual Stage Az-Zour North SWRO Kuwait Abandoned Az-Zour South hybridisation Kuwait Contract awarded Doha East Kuwait Tender Re-issued 2012 Doha East Redevelopment Kuwait Conceptual Stage Doha West Redevelopment Kuwait Conceptual Stage Khirran IWPP Kuwait Advisory RFP Issued Shuaiba North Redevelopment Kuwait Conceptual Stage Shuaibah South Kuwait Tender Expected Soon Shuwaikh Kuwait In construction Abu Taraba extension Libya Conceptual Stage Benghazi Libya Conceptual Stage Benghazi North Libya Abandoned Benghazi South Libya Abandoned Darna extension Libya Tender Expected 2014-2016 Derna Libya In construction Jfara Libya Tender Expected 2014-2016 Misurata Libya Tender Expected 2010-2016 Sirte Libya Tender Expected 2014-2016 Sirte ext. Libya Abandoned Soussa Libya In operation Soussa extension Libya Tender Expected 2014-2016 Tobruk Libya Contract awarded Tobruk Cogen Libya Abandoned Tripoli Libya Abandoned Tripoli East Libya Tender Expected 2010-2013 Zawia Libya Tender Expected 2017-2020

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 24 of 35 Zawia Phase 2 Libya In construction Zueitina Libya Abandoned Zwara Libya Tender Expected 2017-2020 Zwara extension Libya In operation South Province SWRO plants Maldives Contract awarded Mauritius Mauritius Planned Acapulco SWRO Mexico Conceptual Stage Cabo San Lucas Expansion Mexico Feasibility Ongoing El Salitral, Ensenada, Baja California Mexico In planning Ensenada Rural Mexico Tender Process Ongoing Hermosillo Mexico Abandoned Ixtapa, Zihuatanejo Mexico Feasibility Studies Underway La Mision Mexico Conceptual Planning Stage La Paz, Baja California Sur Mexico Awaiting Tender Maravia Country Club Mexico Presumed online Planta San Carlos (formerly Empalme, Sonora) Mexico Conceptual Stage Puerto Peñasco, Sonora Mexico Cross-border Negotiation Rosarito (NSC Agua) Mexico Preconstruction Stage Rosarito Beach (SDCWA) Mexico Feasibility Stage Ongoing Rosarito-Tijuana Mexico Early Conceptual Stage San Quintin, Baja California Mexico Pre-study Phase Tijuana-La Mision-Ensenada, Baja California Mexico Awaiting Tender Agadir Morocco Awaiting Bids Al Hoceima Morocco Tender Expected 2013 Boujdor Morocco Bids Under Evaluation Chtouka Morocco Tender Expected End 2012 Dakhla Morocco Abandoned Dakhla BWRO Morocco Planned Essaouira SWRO Morocco Conceptual Stage Jorf Lasfar Morocco Planned Laayoune Morocco Presumed online Laayoune SWRO – extension Morocco Tender Expected 2013 Nador Morocco Planned Safi Morocco EOI Expected 2013 Sidi Ifni Morocco Phase 1 Expected 2013 Tan Tan Morocco Planned Tan-Tan and Guelmim Morocco Prefeasibility Study Mile 6 (formerly Swakopmund) Namibia Awaiting Bids Swakopmund, Valenica uranium deposit Namibia Planned Uramin Wlotzkasbaken (formerly Swakopmund) Namibia In construction Aruba Neth. Antilles Presumed online

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 25 of 35 Al Ghubrah IWP Oman RFP Issued Containerised RO plant Oman Contract awarded Duqm Oman Conceptual Stage Mina Al-Fahal Oman In operation Mukhaizna Oman In operation New IWPP, likely to be at Barka or Sohar Oman Planned Quhreiat Oman Conceptual Stage Salalah 2 Oman Conceptual Planning Stage Sohar Oman In operation Sohar (#2) Oman In construction Sohar Industrial Port Oman Contract awarded Sur Oman In construction Suwaiq IWP Oman Conceptual Stage The Wave, Muscat Oman Tender Expected Soon Tibat, Musandam governorate Oman RFP Issued Yiti Beach/Shinas Oman Contract awarded DHA Karachi Pakistan Contract awarded Gwadar Industrial Estate Pakistan Abandoned Hawkes Bay Pakistan Planned Karachi Pakistan Planned Korangi (merged with Port Qasim) Pakistan Planned Port Qasim Seawater Desalination Pakistan Prefeasibility Study Gaza Desalination Plant Palestine Awaiting Tender Aguas de Lima Sur II (formerly Lima South) Peru Tender Expected May 2012 Lima North Peru Conceptual Stage Tia Maria Copper Mine Peru On Hold Bay City Philippines On hold Putatan WTP expansion Philippines Bids Under Evaluation Rizal WTP Philippines RFP Expected Soon Caño Tiburones Puerto Rico Water Study Ongoing Abu Samra Qatar Tender Process Ongoing Mesaieed Industrial City (Facility B) Qatar Contract awarded New RO plant Qatar Awaiting Bids Ras Abu Fontas A2 Qatar Awaiting Bids Ras Abu Fontas refurb Qatar Contract awarded Ras Laffan (Pearl GTL Project) Qatar In construction Ras Laffan C Expansion Qatar Under Negotiation Solar-powered desalination plants Qatar Feasibility Study Underway Al Khafji Saudi Arabia Project Design Complete Al Khafji solar-powered SWRO Saudi Arabia Early Stage of Procurement Al Wajh Phase 3 Saudi Arabia Presumed online

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 26 of 35 Al-Khafji Phase 3 Saudi Arabia Abandoned Al-Khobar 2 expansion Saudi Arabia Tender Process Ongoing Alleeth Phase 1 Saudi Arabia Presumed online Al-Waji 4 Saudi Arabia Re-tender Delayed Barge Saudi Arabia In operation Duba Phase 4 Saudi Arabia Design Stage Farasan Phase 2 Saudi Arabia In operation Gasan Industrial RO Plant Saudi Arabia Early Conceptual Stage Haql phase 3 Saudi Arabia Design Stage Jeddah Saudi Arabia In construction Jeddah Phase 3 Saudi Arabia In construction Jizan Economic City Saudi Arabia Bids Under Evaluation Jubai Saudi Arabia Contract awarded Jubail (Marafiq) Saudi Arabia In construction Jubail Phase 3 Saudi Arabia Abandoned Jubail RO upgrade Saudi Arabia Planned Khobar 4 IWPP Saudi Arabia Conceptual Stage King Abdullah Economic City Saudi Arabia Decisions Expected Soon Qunfuthah Phase 1 Saudi Arabia Contract awarded Rabigh IWSPP Stage 2 Saudi Arabia Awaiting Bids Rabigh Phase 3 Saudi Arabia Design Stage Ras Azzour Saudi Arabia Contract awarded Ras Azzour Ma’aden aluminium Saudi Arabia Contract awarded Ras Azzour Ma’aden phosphate Saudi Arabia In construction Ras Tanura Saudi Arabia Awaiting RFP Shoaiba 4 IWPP Saudi Arabia Conceptual Stage Shoaiba Phase 3 Saudi Arabia Planned Shuqaiq 3 IWPP Saudi Arabia Conceptual Stage Shuqaiq Phase 2 Saudi Arabia In construction SWRO-4/5 Portable Water Project Saudi Arabia Awaiting Bids Ummluj Phase 3 Saudi Arabia Contract awarded Wasia BWRO Saudi Arabia Awaiting Bids Yanbu Saudi Arabia Bids Under Evaluation Yanbu (Marafiq) Saudi Arabia Contract awarded Yanbu (Marafiq) 2 Saudi Arabia Bids submitted Yanbu 3 Saudi Arabia Bidders Announced Yanbu MED Saudi Arabia Contract awarded Multi-plant rehabilitation and upgrade package Seychelles Contract awarded Tuas II Singapore Preferred bidder announced Elektrárne Nováky thermal power station, Bratislava Slovakia In operation Cape Town SWRO South Africa Bids Under Evaluation

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 27 of 35 Coastal cities including Cape Town and Durban South Africa Planned Durban SWRO South Africa Contract Awarded Lamberts Bay South Africa On Hold Plettenberg Bay South Africa Planned Port Elizabeth, Coega Industrial Development Zone South Africa In construction Saldhana Bay South Africa Contract awarded Swartkops South Africa Planned Adeje Arona/Sur de Tenerife Phase II Spain In operation Adra, Almeria Spain Conceptual Stage Aguilas, Murcia Spain In construction Aguilas/Guadalentín, Murcia Spain In construction Alcudia Spain In construction Alicante II (ex Canal de Alicante) Spain Presumed online Alicante Phase 2 Spain Presumed online Almenara, Castellón Spain Abandoned Almuñecar, Granada Spain Project not Implemented Alt Empordà, Catalunya Spain Contract awarded Andratx Spain In operation Bajo Almanzora, Almeria Spain In construction Balsa del Sapo, Almería Spain Planned Calpe/Marina Alta, Alicante Spain Impact Assessment Ongoing Campo de Cartagena, Murcia Spain Conceptual Stage Campo de Dalías, Almeria Spain Pre-construction Carboneras II Spain Early Planning Stage City of Ceuta Phase 2 Spain In construction Ciutadella de Menorca Spain In construction Denia, Alicante Spain Contract awarded Desalination for the Costa del Sol Spain Planned El Campello, Alicante Spain Contract awarded El Mojón, Murcia Phase II Spain Planned El Prat del Llobregat 2, Catalunya Spain In construction El Prat del Llobregat, Catalunya Spain In operation Embalse de Guadalhorce, Malaga Spain Abandoned Foix/Cunit, Tarragona Spain Project Postpond Granadilla, Tenerife Spain Contract awarded Guadalentin Spain Presumed online Guardamar/Vega Baja, Alicante Spain Awaiting Impact Approval Guía de Isora, Tenerife Spain Contract awarded Janubio, Lanzarote Spain Contract awarded Jávea, Alicante Phase II Spain Abandoned La Caleta, Tenerife Spain In construction

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 28 of 35 La Pedrera, Alicante Spain Abandoned L'Alacanti y Marina Baja, Alicante Spain Planned Lanzarote V, Canary Islands Spain Contract awarded Las Palmas IV, Gran Canaria Spain Conceptual Stage Las Palmas V, Gran Canaria Spain Conceptual Stage Levante de Mallorca, Balearics Spain Under Consideration Llanadas BWRO Spain Conceptual Stage Mahon, Menorca, Balearics Spain Under Consideration Marbella, Malaga refit Spain In operation Marina Alta/Calpe, Alicante Spain Abandoned Marina Baja/El Campello/Mutxamel, Alicante Spain In construction Marina Baja/Mutxamel Phase II, Alicante Spain Conceptual Stage Mazarrón, Murcia Spain Abandoned Melilla BWRO Spain Project Announced Melilla Phase II, Melilla Spain Awaiting Tender Mijas, Fuengirola Spain In construction Moncófar, Castellón Spain In construction Oropesa, Castellón Spain In construction Pilar de la Horadada, Alicante Phase 2 Spain Contract awarded Puerto de Rosario, Fuerteventura Spain Contract awarded Rincon de Leon, Alicante Spain In operation Rincón, Malaga Spain Conceptual Planning Stage River Guadalhorce BWRO Spain Conceptual Stage Sagunto, Valencia Spain In construction San Bartolomé and Mogán, Gran Canaria Spain Conceptual Stage Santa Cruz de Tenerife, Canaries Extension Spain In planning Telde, Gran Canaria Spain In operation Tordera, Catalunya Expansion Spain Contract awarded Tordera, Catalunya II Spain Project Postponed Torrevieja (ex.Tajo-Segura Transfer), Alicante/Murcia Spain In construction Valdelentisco, Murcia Spain In construction Valdelentisco, Murcia Spain In operation Valle de Güimar, Tenerife Spain RFP Issued Valle Guerra, Tenerife Spain Conceptual Stage Vinalopó/L’Alacantí, Alicante Spain In construction Taoyuan Taiwan Contract awarded Chaguaramas Trin. and Tobago Abandoned Cove (Southwestern Tobago) Trin. and Tobago Abandoned Cove Industrial Estate Trin. and Tobago Abandoned Erin Trin. and Tobago Abandoned La Brea (Point Fortin) Trin. and Tobago Abandoned

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 29 of 35 Mayaro Trin. and Tobago Abandoned Ortoire Trin. and Tobago Abandoned Point Lisas Expansion Trin. and Tobago Abandoned Point Lisas Powergen Trin. and Tobago Abandoned Pointe-a-Pierre Refinery Trin. and Tobago Awaiting Invitation to Bid Djerba Tunisia Project Re-tendered Kerkennah Tunisia Seeking Funding for Studies Phase 1 Southern Tunisia brackish water plants Tunisia Awaiting Contract Reward Phase 2, Southern Tunisia brackish water plants Tunisia Contract Awarded Sfax Tunisia Awaiting Tender Zaarat Tunisia Awaiting Contract Award Avsa Turkey In operation Colakoglu Steel Mill Turkey Presumed online Famagusta (Magusa), Northern Cyprus Turkey Planning Stage Istanbul Turkey Conceptual Stage Nuh Cimento, Gulf of Izmit Turkey Presumed online Abu Dhabi Port Authority UAE Contract awarded Abu Dhabi, Desert Islands UAE Conceptual Phase Al Hamra UAE On hold Al Zawrah 2, Ajman UAE Contract awarded Al Zawrah, Ajman UAE Contract awarded Desalination plant refurbishment at E Station Phase 1, Jebel Ali UAE Bids Under Review Dubal SWRO UAE Abandoned Emal’s Emirates Aluminium Project UAE In construction Fujairah Fresh Water SWRO UAE Prequalification Fujairah 1 SWRO expansion UAE Preferred Bidder Announced Fujairah 2 UAE Contract awarded Ghalilah, Ras Al Khaimah UAE Bids submitted Hamriyah UAE In construction Hamriyah IV MED UAE Awaiting Contract Award Hamriyah IV SWRO UAE Awaiting Contract Award Hassyan 2 (formerly P Station Hassyan Phase 1) UAE Expected After Hassyan IPP Hassyan IWPP UAE Planned Hydrogen power and desalination plant, Abu Dhabi UAE Awaiting Contract Award Jafza UAE Bids Under Evaluation Jebel Ali L Phase 2 UAE In construction Jebel Ali M UAE Contract awarded Jebel Ali M Phase 2 UAE Planned Jebel Ali N UAE Contract awarded Layyah UAE Planned

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 30 of 35 Layyah/Khor Fakkan UAE In operation Masdar UAE Preliminary Stage Mina Rashid UAE Awaiting Tender Mirfa IWPP UAE Early Conceptual Stage N Station UAE Planning Stage New plant and relocation, Ajman UAE Contract awarded Palm Jebel Ali (including Madinat Al Arab) UAE Three Bidders Shortlisted RAK Ceramics UAE Planned RAK Petroleum UAE Conceptual Stage Ras Al Khaimah UAE Contract awarded Saadiyat Island UAE Awaiting Bids Shuweihat 2 UAE Contract awarded Shuweihat 3 IPP UAE Open for Desal Component Takreer desalination plant UAE Planned Taweelah C IWPP UAE Expected After Shuweihat 3 Two SWRO Plants, Northern Emirates UAE RFP Expected Soon Umm Al Nar UAE Developers in Negotiations Umm Al Quwain UAE Contract awarded Brighton United Kingdom Plant Under Consideration London United Kingdom In construction Newhaven United Kingdom Long-term Supply for 2035 Alamogordo New BWRO Plant, NM United States Project Under Evaluation Baker Water United States In construction Bay Area Regional Desalination Project (BARDP) United States Site Studies Ongoing Broward County New RO Plant, FL United States Tender Expected 2015 Brownsville, TX United States On Hold Calleguas Creek United States RFP Issued Cambria, CA United States In Permitting Camp Pendleton United States Feasibility Studies Ongoing Cape Coral, FL United States In construction Carlsbad SWRO, CA United States Conceptual Stage Carlton Water Treatment Facility, Sarasota, FL United States Contract Awarded Chino II expansion, CA United States RFP issued City of Kenedy, TX United States Contract awarded City of San Angelo, TX United States Abandoned Clearwater, FL United States Plant 2 to be Tendered Soon Coastal Water Project, Monterey County, CA United States Planned Coquina Coast, FL United States Conceptual Stage Corpus Christi/Flour Bluff, TX United States Pre-feasibility Dominguez Gap Barrier Project United States Abandoned East Hanover, NJ United States Permitting/Funding Stage

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 31 of 35 El Paso, TX United States In operation Florida Keys, FL United States In construction Fort Myers, FL United States Planned Freeport, TX United States Abandoned Galveston, Texas City &League City Desal, TX United States Early Conceptual Stage Granbury BWRO, TX United States Awaiting Approval Green Meadows BWRO, FL United States Design Ongoing Guadalupe-Blanco SWRO, TX United States Prefeasibility Study Ongoing Gulf of Mexico to supply San Antonio, TX United States RFQ for Feasibility on Hold H2Ocean Cristina United States Awaiting Impact Studies Haverstraw, NY (formerly Rockland) BWRO United States Awaiting Approval Hialeah, FL United States Contract awarded Hull, MA United States On hold Huntington Beach, CA United States Permitting Process Kalaeloa, HI United States Abandoned Keansburg, NJ United States Contract awarded Laguna Madre, TX United States Conceptual Stage Long Beach, CA United States Pilot Study Ongoing Los Angeles Harbour Area United States Abandoned Marin County (formerly San Rafael), CA United States On hold Mid Pinellas, FL United States Abandoned Monterey County Regional Desalination United States Decision Expected 2014 Morro Bay United States Presumed online Moss Landing/Duke Energy site, CA United States Contract awarded Moss Landing/Kaiser Refractory site, CA United States Early Stage of Planning Oceanside, CA United States Feasibility Study Completed Odessa BWRO, TX United States RFP Issued Oldsmar City, FL United States In construction Otay River, CA United States Planned Oxnard, CA United States In construction Pioneers District New RO Plant, SC United States Location Changed-Delayed Playa del Rey (Scattergood Generating Station), CA United States On hold Port St Lucie, FL United States On hold Rancho Dominguez, CA United States Abandoned Reynolds brackish ground water facility (Chula Vista) United States Awaiting Tender Rio West, NM United States On Hold Rockland, NY United States Contract awarded San Antonio BWRO, TX United States Contract Awarded San Joaquin River, CA United States On Hold San Luis Obispo, CA United States On Hold Sand City, Monterey, CA United States In construction

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 32 of 35 Santa Barbara, CA United States Long-term Possibility Santa Barbara, William B. Cater Advanced Water Treatment Project United States Planned Santa Clarita New RO plant, CA United States Conceptual Stage Santa Cruz SWRO, CA United States EIR Expected Soon Scottsdale Water Campus AWT expansion United States In construction Seminole, TX United States Awaiting Contract Award Somerset County, Maryland United States Contract awarded South Florida United States Abandoned South Orange Coastal Ocean Desalination Project (Dana Point, CA) United States Feasibility Study Ongoing Southwest Groundwater Treatment Plant, Utah United States Contract awarded Swansea. MA United States In operation Tarpon Springs, FL United States In permitting Taunton River United States In operation Taunton River, MA United States In operation Texas BWRO, TX United States RFP Issued West Basin, CA United States Feasibility Study Awarded Withlacoochee United States Planned Paraguaná Refinery Complex Venezuela In construction Virgin Islands, Paraquita Bay U.K. Contract awarded St Thomas and St Croix Virgin Islands, U.S. Contract awarded Mocha Yemen Development Agreement Taiz Yemen Feasibility Study Underway

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Bibliography  http://www.gulfbase.com/site/interface/NewsArchiveDetails.aspx?n=98458  The World Bank: Seawater and Brackish Water Desalination in the Middle East and North Africa  GWI: Desalination Markets 2010  http://www.globalwaterintel.com/gwi-downgrades-desalination-market-expectations-201011/  Neil Callahan: Integration of Power Generation and Water Desalination Operations  http://www.ge.com/mea/docs/brochure_sa_english.pdf  http://www.dcbureau.org/201103081301/Natural-Resources-News-Service/the-water-business- desalination-means-big-business-to-california-industry.html  http://www.carlsbad-desal.com/  Chantel McGrath: Renewable Desalination Market Analysis  Global Water Intelligence: Vol 10, Issue 10 (October 2009)  Research and Markets: GCC Power & Water Desalination Industry Overview 2010  http://www.fao.org/nr/water/aquastat/countries/untd_arab_em/index.stm  http://www.ibm.com/news/sa/en/2010/03/31/z337573t40642u34.html  http://msdssearch.dow.com/PublishedLiteratureDOWCOM/dh_0259/0901b80380259476.pdf?fi lepath=liquidseps/pdfs/noreg/609-00619.pdf&fromPage=GetDoc  http://www.desalination.biz/news/news_story.asp?id=5480&channel=0  Mohamed Al-bahou: Desalination experience in Kuwait  http://www.globalwaterintel.com/archive/11/3/general/kuwait-offers-new-flexibility-az-zour- north-complex.html  http://www.desalination.biz/news/news_story.asp?id=5323&channel=0  http://www.meed.com/sectors/water/kahramaa-to-launch-tender-for-desalination- plant/1972990.article  http://www.arabianbusiness.com/qatar-eyes-water-desalination-plant-expansion-305936.html  http://www.ooskanews.com/middle-east-africa/qatar-desalination-among-projects-planned- nuclear-techology  http://www.desalination.biz/news/magazine_article.asp?id=4702&title=  http://www.desalination.biz/news/news_story.asp?id=4775  http://www.globalwaterintel.com/archive/11/7/market-insight/desalination-market- returns.html  Hani Abu Qdais: Environmental impacts of the mega desalination project: the RDSC  http://www.globalwaterintel.com/archive/11/7/market-insight/desalination-market- returns.html

WORLD TRADE CENTER San Diego – Desalination Industry Report Page 34 of 35  http://www.eib.org/projects/pipeline/2009/20090714.htm  http://www.energyrecovery.com/index.cfm/0/0/41/17-Hurghada-Desalination-Plant-Egypt.html

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