What is the current status of the seawater desalination industry?

Desalination is the answer to water scarcity

Our growing population, climate change, and deteriorating environmental circumstances (such as changing weather patterns, deforestation, and increasing pollution) have caused water scarcity around the globe. Many people are now experiencing water stress.

Communities in various regions or countries are not getting enough access to the water resources they need. At present, the world's freshwater resources are scarce because shore water and groundwater sources are depleting.

It’s a bit ironic to think that while 71% of our planet is covered in water, we are still facing scarcity. This is because only 2.5% of the water you can find on Earth is fresh, only about 1% of that is easily accessible. Most of the water in our world is found in oceans, which is not safe to drink. Fortunately, the technology to make seawater potable already exists, and this is called desalination.

Water Desalination: How it works

Seawater desalination is a process that removes salt and impurities from seawater to produce fresh, potable water. This process is done through two main methods, which are membrane-based and thermal distillation. Once water is desalinated, it is then further treated to meet drinking water standards.

More often than not, desalination systems are seen along ocean shorelines, on ships, or in open water. This is because desalination systems need a constant supply of saline water, which they transform into potable water by removing dissolved salt and other minerals.

A Global Response to Water Scarcity

Currently, the regions that are experiencing water stress the most are the United States, China, and Spain. Water scarcity is also worsening in desert countries such as the Middle East, Israel, Saudi Arabia, and Kuwait. Communities in these areas all lack water, so they need to rely on desalination systems. Fortunately, there are ongoing projects being led by various governments as well as private enterprises such as desalination and pipeline companies to help curb water stress.

Private enterprises such as Hutchison Water and Israel’s IDE Technologies are looking to collaborate with various governments to complete a wide range of desalination projects. Hutchison Water, together with IDE, currently facilitates the world’s largest leading-edge saltwater reverse osmosis (SWRO) desalination plant in Sorek, South of Tel Aviv, and Israel.

In a bid to boost water supplies, China’s government is currently implementing a five-year plan to build new desalination plants. Over the 2021-2025 period, China will invest in more water treatment plants to raise capacity up to 2.9 million tonnes per day.

Seawater desalination projects are planned for the provinces of Shandong, Hebei, Zhejiang, and Liaoning as well as the city of Tianjin. This move will make desalinated water a major contingent source of municipal supplies in regions experiencing water shortages.

Other than desalination, China also spearheaded the South-North Water Diversion Project to help mitigate water scarcity. This project involved building several new canals designed to divert excess water from the flood-prone Yangtze river to the drought-stricken Yellow river regions of the north.

The Current State of the Seawater Desalination Industry

In 2018, the market volume for desalination was at 15.2 billion U.S. dollars, with an annual growth rate of 8-9% and was projected to reach 32.6 billion U.S. dollars in 2025. The volume of the entire market appeared to be gradually rising. However, due to the impact of the global pandemic over the last two years, market demand has dipped. This, in turn, has affected the entire desalination industry.

As the current growth rate for demand slows down, competition among desalination and pipeline companies for projects has intensified significantly. Everyone in the industry is fighting to get projects, but most of what they get are smaller cases.

Visible Trends for the Industry in the Next 3–5 Years

Recent search market reports suggest that the market size for desalination can reach more than 30 billion U.S. dollars in 2025. However, with all the turmoil the pandemic has caused in the last two years, it is currently impossible to judge where the desalination industry will land in the next three to five years.

The global pandemic has thrust many players in the water industry into uncharted territory. COVID-19, along with the economic fallout it caused in the global market, presented a significant threat to everyone in the industry. The virus left a negative impact on water utility service workforces, budgets, and supply chains.

Despite the near-term challenges caused by the pandemic, the water industry is also presented with many long-term opportunities. Municipal utilities may suffer the cumulative impact of local economies freezing, demand patterns shifting, and limited manpower in the near term. This calls for long-term investments in enhanced remote management, emergency response, and restructuring of operating budgets.

Trends in Materials Used By Equipment Manufacturers

Currently, most equipment manufacturers utilize commercial prefabricated pipes as these provide savings in terms of time and costs. The pipe spool material used in these products is high-grade duplex stainless steel, which is critical as desalination is done in a highly corrosive environment.

In comparison to other materials used in desalination pipes such as titanium, stainless steel is more favorable. This is because stainless steel is readily available, easy to manufacture, and generally suitable for desalting services as it has performed well in highly corrosive environments.

Downsizing of Equipment Manufacturers

The COVID-19 pandemic affected the global economy adversely as governments across the globe were forced to implement lockdowns, with the intent to prevent the spread of the virus. Consequently, the operations of desalination plants and systems in various countries were hampered.

Stringent lockdown measures being implemented, whether partially or in full, has led industrial operations to a halt. To make things worse, the unavailability of workforce as well as the decline in logistical operations has also affected the productivity of various desalination plants.

Additionally, most desalination projects that were in the construction phase had to be put on hold. As a result, water desalination equipment providers saw less business growth and others had to downsize as the orders for pumps, membranes, pressure vessels, evaporators, and other equipment continued to wane until the construction of projects resumed.

Staying Competitive Despite Various Setbacks

In order to thrive in the industry despite various setbacks, large companies should look to invest in desalination plants and focus on operating them. Government-led and private desalination plants should also invest in and operate water treatment plants.

Small and medium-sized enterprises (SMEs) should consider becoming engineering, procurement, and construction (EPC) contractors to serve large companies. These SMEs can provide reliable equipment, engineering, and on-site maintenance for desalination plants.

The Challenges of Working With Suppliers Overseas 

Sourcing goods or materials overseas is a step you can take to cut production costs by a significant margin. However, you should be aware of the many unique challenges you may have to face. These difficulties may include the following:

• Regulations
• Logistics
• Customs and Language
• Cultural Differences
• Time Zones
• Currency Fluctuations

Additionally, most companies need their orders to be completed within 15-20 days. At present, 70-80% of businesses are looking for vendors locally because the quantity they need is small. Shipping costs are another consideration and are often the reason why they choose to find local vendors.

Government projects need to be custom-priced. The basic going rate for a large project in pipe spool is about one million RMB (approximately 157,000 USD), which usually corresponds with ten-million-RMB (1.6 million USD) construction projects.

Benefits of Choosing Overseas Suppliers

Given all the aforementioned challenges, sourcing materials overseas is still a competitive advantage for most businesses. For companies with tight budgets, finding a supplier abroad can be a great way to maximise their bottom line. Aside from the savings on costs, companies that choose overseas suppliers also gain access to other benefits such as:

• Access to cutting-edge research, design, or specialised knowledge
• Availability of world-class technology that exists in certain markets
• Access to raw materials unavailable domestically
• Higher quality goods compared to domestic products
• Manufacturing capabilities currently unavailable domestically
• A great number of potential suppliers you can choose from

How to Choose the Supplier That’s Right for You

Finding a supplier in the market is easy. Choosing the right one is a different story. Take for example, there are a lot of suppliers in India who can offer you low prices, but those who also deliver on quality are quite rare. South Korea, on the other hand, has many highly credible brands that offer top-quality products. It is important to note, however, that many Korean brands are imported from China. This is because many of these South Korean brands rely on factories located in China for their supply.

When it comes to choosing a supplier to work with, it is critical to consider all options. If you allow yourself to tunnel vision on getting the lowest price available in the market, you might just end up compromising the quality of your product. This is one of the biggest mistakes any business owner can make. If you compromise on quality for the sake of price, your customers will lose their confidence in your brand and choose to shop elsewhere.

Why Pipeline Companies Choose Chinese Suppliers

Desalination equipment manufacturers often work with Chinese suppliers to reduce production costs while ensuring the procurement of high-quality materials. This is because suppliers in China often offer quality products at competitive prices that are hard to beat.

Take for example: Glen Engineering. We understand that desalination is a high-pressure and highly corrosive environment, which can affect the durability of various materials. As a piping company founded in China, we offer products that undergo in-depth testing to ensure the highest of quality. These include:

Corrosion Resistance Tests

Corrosion refers to the oxidation of various metals as well as the gradual breakup of materials due to chemical reactions with their environment.

A primary example of corrosion is rusting, which damages materials made of metal. When a pipe starts to rust, its tensile strength is reduced significantly, its permeability is increased, and its appearance is also adversely affected.

Through corrosion resistance testing, we can determine how much certain materials can resist corrosion under specific environmental conditions. Materials are tested by exposing them to varying temperatures, as well as levels of humidity and saltwater.

Metallographic Tests

A metallographic examination is a versatile method we use to conduct damage analysis. This type of test involves cutting sections through the sample of the material, embedding it in synthetic resin, and then grinding and polishing the surface until it is smooth. In doing so, we can observe the very fine structures of the material under a light microscope that is capable of magnifying images a thousandfold.

Through metallographic tests, we gain access to important information about the structure and properties of metal and alloy samples. As metals are subjected to various chemical reactions, melting, cooling, and working processes, their grains and crystalline structure are bound to change. We study the material’s microstructure to evaluate how it will fare in various environmental conditions.

Chemical Composition Analysis

Chemical composition refers to the identity and number of elements that make up any compound. Any given material has to undergo chemical composition analysis. This is because its chemical composition can affect your product‘s mechanical properties significantly.

Every material has its standard chemical composition, which defines the specific content of each ingredient. For example, carbon steel can be divided into three groups based on carbon content. These groups are low, medium, and high carbon steel. It’s important to note that as the carbon content in carbon steel goes higher, so does its level of hardness and tensile strength.

Heat Treatment Testing

By nature, steel, iron, and other metals are already hard and strong. However, some applications require even more durable or corrosion-resistant metals. To produce this type of metal, you have to rely on industrial heat treating processes.

We conduct heat treatment testing to assess a material’s response to exposure to extreme heat. In doing so, we can certify the material to the specified requirements.

Mechanical Properties Testing

Through mechanical properties testing, we gain access to information on a material’s strength, impact resistance, ductility, hardness, and fracture toughness. In mechanical properties testing, a given material is exposed to various conditions such as:

• • Elevated Temperature
  • Tension
  • Stress
  • Compression
  • Elongation
  • Impact
  • Load
  • Fatigue

PMI Testing

Positive material identification (PMI) testing is done to analyze materials and look at the chemical composition of various metals and alloys. These are all evaluated during different stages of the alloy manufacturing process.

By understanding the exact composition and the grade of alloy, plant workers, suppliers, and other responsible parties can handle the chain custody of components and match the alloy specifications.

Appearance and Dimensional Testing

Dimensional testing or metrology assesses the geometric characteristics of machined parts and products. The goal is to verify their compliance with design specifications. Through metrology, you can ensure the accuracy of your product’s features, ensuring reliability and functionality. 

Glen Engineering also provides certification on products. We measure and calculate packaging, which means we provide a comprehensive transportation plan, including container volume design and freight. Through our stringent quality control, you can rest easy knowing that the products we offer are built to last.

Your reliable piping partner.

We are one of the world’s fastest developing manufacturers of marine equipment solutions, piping solutions  and  prefabricated pipes to a global customer base.

When you choose Glen Engineering, you are guaranteed the highest quality of service and products to meet all major maritime guidelines and standards. Interested to learn more? Get in touch today.