Water Reuse Markets 2005-2015: A Global Assessment & Forecast

SUMMARY

Executive summary

Global water reuse capacity will rise from 19.4 million cubic meters a day in 2005 to 33.7 cubic meters a day in 2010 and 54.5 million cubic meters a day in 2015 -- a 181% increase over the decade.

The largest growth markets will be:

Market Expected additional capacity by 2015 % annual increase China 10,790 +29% MENA 5,589 +12% USA 4,473 +12% Western Europe 3,895 +10% South Asia 3,750 +14%

This expansion reflects the scale of the water crisis facing many regions of the world. In order to achieve the required expansion of water reuse capacity, total capital investment in the sector will top $28 billion. The top five markets in terms of capital expenditure will be:

Market Forecast capital expenditure MENA $7,053 USA $5,636 Western Europe $5,534 China $3,615 Rest of Asia Pacific $1,500

In comparison the global desalination capacity will grow from 30.6 million cubic meters per day in 2005 to 61.7 million cubic meters per day in 2015 -- a 102% increase.

Both the desalination market and the market for water reuse are driven by rising demand for water, and the scarcity of new supplies. The fact that water reuse is expected to grow at a faster rate than desalination is attributable to the following factors:

1) There is strong political support for water reuse in the USA, Europe and Australia. Whereas growing environmental concern about discharges restricts the desalination market, the same concerns drive forward the market for water reuse. 2) Key markets such as China and the Middle East and North Africa have historically had a very limited wastewater infrastructure, both in terms of collection and treatment. Very significant investment in building new wastewater infrastructure in these markets will dramatically increase the availability of wastewater for reuse. 3) The maturity of membrane technologies (including membrane bio-reactors) in the wastewater treatment sector has reduced costs and broadened the scope of the wastewater reuse market. Although advances in membranes have also benefited reverse osmosis (RO) desalination, difficulties in the pre-treatment process (as evidenced by the difficulties at the Tampa Bay desalination plant, and in the reluctance of Gulf markets to embrace RO) has meant that the desalination market has not fully capitalised on its lower potential costs.

The main draw-back of water reuse is that, with the exception of Namibia, reclaimed or even repurified wastewater is not considered suitable for direct potable use. This has three implications. First it means that water reuse requires a new and separate distribution infrastructure. Second it means that there is often a disjuncture between where wastewater is available for reuse (typically at wastewater treatment plants serving residential areas) and where reclaimed water can be used (typically in agriculture and industry). Third it means that reclaimed water cannot always directly solve a water scarcity issue for a municipal water utility. Instead it is used to free up additional potable water supplies from non-domestic users who have no restrictions on the use of reclaimed water.

These strictures significantly increases the capital costs involved in water reuse projects, particularly where land values are high, and the distance that reclaimed water must travel in order before it can be used is high. The average capital cost of a water reuse project in the USA is $1,208/m3/d capacity, giving it little advantage over seawater desalination. Operating costs are lower, principally because of lower energy costs. Operating costs, estimated to average $0.35/m3 globally, are lower than the operating cost of new desalination projects which is estimated to be in the region of $0.62.

A change in policy to enable direct potable reuse would reduce the operating cost of new water reuse projects by 30%, greatly enhancing the scope of the market.

The main beneficiaries of the expansion in water reuse are membrane manufacturers and process engineers. Anticipation of this growth partly explains recent M&A activity in the water treatment sector including GE Infrastructure's purchase of Ionics (which was responsible for the largest water reuse plant in the world at Sulaibiya in Kuwait), Siemens' purchase of US Filter ( which was responsible for a number of high profile plants in the US, Australia and Southern Africa) and ITT's purchase of Wedeco

TABLE OF CONTENTS

• Foreword
• Executive summary
• Section 1: Overview
• Chapter 1 - Background
  • 1.1 Definitions
  • Figure 1.1: Schematic diagram of water reuse process.
  • 1.2 Levels of treatment
  • 1.3.Market Overview
  • Figure 1.2 Schematic diagram of water reuse
  • Figure 1.3 Water by source market share (volume and value)
  • 1.4 Current water reuse market size by volume
  • Figure 1.4: Volume water reuse market by country/region.
  • Figure 1.5: Global water reuse volume by level of treatment
  • Figure 1.6: Water reuse volume by level of treatment by country/region.
  • Figure 1.7: Global water reuse volume by field of application by country/region.
  • 1.5 Water reuse technologies
  • Figure 1.8: Unit processes and operations used in wastewater reclamation and contaminant removal.
  • Figure 1.9: Typical performance of tertiary filtration.
  • 1.6 Water reuse by technology type
  • Figure 1.10: Proportion of plants using different tertiary treatment technologies by country/region.
  • Figure 1.10 continued
  • Figure 1.11 Technologies used in quaternary treatment of wastewater for reuse by volume
  • Figure 1.12 Quaternary treatment in water reuse by customer type
  • Figure 1.13: Quaternary treatment in water reuse by country
  • Figure 1.14: Total capacity of quaternary treatment in water reuse 1970-2005.
  • Figure 1.15: Additional annual capacity of quaternary treatment in water reuse 1970-2005.
• Chapter 2: Market drivers
  • 2.1 The benefits of water reuse
  • 2.2 Water Availability -- the macro picture
  • Figure 2.1 World renewable water availability
  • Figure 2.2 Global internal renewable resources per person per year.
  • Figure 2.3: Significance of local scarcity.
  • 2.3 Demand for water
  • Figure 2.4: Demand by end-user.
  • 2.4 Domestic Demand
  • Figure 2.5: Global domestic water usage 1950-2025
  • 2.5 Industrial demand
  • Figure 2.6: Summary of Automotive Industry Water Uses.
  • Figure 2.7: Net Water Use for the Manufacture of Pulp and Paper.
• Water Reuse Markets
• © Global Water Intelligence. Contact ai@globalwaterintel.com
  • 2.6 Agricultural demand
  • Figure 2.8: Percentage increase in land under irrigation since 1961.
  • 2.7 Demand forecast
  • Figure 2.9: Forecast water demand 2005-2015 by country/region.
  • 2.8 Groundwater availability
  • 2.9 Demand and water scarcity
  • Figure 2.10: Additional non traditional supply required in water scarce/water stressed regions.
  • 2.10 Affordability
  • 2.11 The cost of water reuse
  • Figure 2.11: Typical water re-use project costs.
  • Figure 2.12 Typical energy consumption by treatment process
  • Figure 2.13: Water reuse project capital costs.
  • Figure 2.14 Amortised cost of capital/m3/d.
  • Figure 2.15: Estimated average operating cost of additional water reuse capacity.
  • 2.12 The relative cost of water reuse
  • Figure 2.16: Major international water transfer projects.
  • Figure 2.17: Capital cost of recent desalination projects.
  • 2.13 Ability to pay fs vs maximum "affordable" tariffs.
  • 2.14 Practical issues
  • 2.15 Public policy
• Chapter 3: Market forecastSt
  • 3.1 Forecast assumptionsSt
  • 3.2 Global water reuse forecast 2005--2015
  • 3.3 Charts and graphs
  • Figure 3.1 Forecast water reuse growth by region
  • Figure 3.2 Wastewater treatment capacity added 2006-2010 by level of treatment
  • Figure 3.3 Wastewater treatment capacity added 2011-2015 by level of treatment
  • Figure 3.4 Additional wastewater treatment by level of treatement 2005-2015
  • Figure 3.5 Capital and operating expenditure on water reuse 2005 - 2015 62
  • Figure 3.6 Water reuse as a proportion of total additional non-traditional water supply capacity 2005 -2015
  • Figure 3.7: Desalination vs water reuse capacity 2005 - 2015
  • Figure 3.8: Desalination vs water reuse operating expenditure 2005-2015.
• Section 2 - Americas
• Chapter 4: Americas regional summary
  • 4.1 Basic information
  • Figure 4.1 Americas (North and South): Water availability by population
  • Figure 4.2: Water reuse profile for Americas region
  • 4.2 Forecast assumptions 64.3 Forecast 2005 - 2015 68
  • Figure 4.3 Water reuse capacity growth in the Americas region 2005 - 201
  • Figure 4.4 Water reuse as a proportion of total new non-traditional water production in 2015
  • Figure 4.5 Forecast Americas capital and operating expenditure on water reuse 2005 - 2015 70
• Chapter 5: The United States
  • 5.1 Basic information
  • Figure 5.1 United States: Water availability by population
  • Figure 5.2 United States: Current water reuse data
  • 5.2 Introduction
  • 5.3 Legal background -- US federal laws
  • 5.4 Population
  • Figure 5.3 Population growth by state
  • 5.5 California & Florida
  • 5.5.1 California
  • Figure 5.5 California water reuse by end-users
  • Figure 5.6 Estimated capital cost of WF21 GWR System
  • Figure 5.7 Estimated annual O&M costs for WF21 GWR System
  • 5.5.2 Florida
  • Figure 5.8 Florida water reuse by end-user (2002)
  • Figure 5.9 Florida water reuse inventory
  • 5.7 Colorado
  • 5.8 Texas
  • 5.9 Georgia
  • 5.10 The northern states
  • 5.11 Hawaii
  • 5.12 Forecast assumptions
  • 5.13 Forecast 2005 - 2015
  • Figure 5.10: Forecast water reuse capacity growth in the USA 2005
  • Figure 5.11: Water reuse as a proportion of total new non-traditional water production in 2015
  • Figure 5.12 Forecast US operating and capital expenditure on water reuse 2005
• Chapter 6: Americas outside the US
  • 6.1 Basic information
  • Figure 6.1: Americas outside the US: Water availability by population
  • Figure 6.2 Americas (excluding the US): Current water reuse data
  • 6.2 Forecast assumptions
  • 6.3 Forecast 2005 - 2015
  • Figure 6.3: Forecast water reuse capacity growth in the Americas (excl. US) 2005 - 2015
  • Figure 6.4 Water reuse as a proportion of total new non-traditional water production in 2015
  • Figure 6.5 Americas excl. US capital and operating expenditure 2005 - 2015
• Section 3: Asia Pacific
• Chapter 7: Asia Pacific
  • 7.1 Basic information
  • Figure 7.1: Asia Pacific: Water availability by population
  • Figure 7.2: Asia Pacific: Current water reuse data
  • 7.2 Forecast assumptions
  • 7.3 Forecast 2005 - 2015
  • Figure 7.3 Forecast water reuse capacity growth in the Asia Pacific region 2005 - 2015
  • Figure 7.4 Water reuse as a proportion of total new non-traditional water production in 2015
  • Figure 7.5 Forecast Asia Pacific capital and operating expenditure on water reuse 2005 - 2015
  • Figure 7.5: Asia Pacific operating and capital expenditure 2005 - 2015
• Chapter 8: Australia
  • 8.1 Basic information
  • Figure 8.1 Australia: Water availability by population
  • Figure 8.2 Australia: Current water reuse data
  • 8.2 Introduction
  • 8.3 Legal structure
  • 8.4 Climate and population
  • Figure 8.3 Australian populan by state and capital city (2001)
  • Figure 8.4 Percentage of water reuse by state (2001)
  • Figure 8.5 Reuse as a percentage of treated effluent
  • 8.5 New South Wales 105
  • 8.6 South Australia 108
  • Figure 8.6 Potable water prices in South Australia
  • 8.7 Victoria
  • Figure 8.7 Melbourne Water reuse targets
  • Figure 8.8 Destination of reuse water from Melbourne's Western and Eastern WwTPs
  • 8.8 Queensland
  • 8.9 Western Australia
  • 8.10 Northern Territory
  • 8.11 Tasmania
  • 8.12 Australian Capital Territory (ACT)
  • 8.13 Forecast assumptions
  • 8.14 Forecast 2005 - 2015
  • Figure 8.9 Forecast water reuse capacity growth in Australia 2005 - 2015
  • Figure 8.10 Forecast capital and operating expenditure on water reuse in Australia 1
• Chapter 9: Singapore
  • 9.1 Basic information
  • 9.2 Introduction
  • 9.3 NEWater 1
  • Figure 9.1: NEWater plants.
  • 9.4 Singapore WaterHub
  • 9.5 Forecast assumptions]
  • 9.6 Forecast 2005 --
  • Figure 9.2 Forecast water reuse capacity growth in Singapore
  • Figure 9.3 Water reuse as a proportion of total new non-traditional water production in 2015
  • Figure 9.4: Singapore water reuse operating and capital expenditure 2005 - 2015
• Chapter 10: Japan
  • 10.1 Basic information
  • Figure 10.1 Japan water availability by population %
  • Figure 10.2 Japan: current water reuse data
  • 10.2 Introduction
  • 10.3 Large area systems
  • Figure 10.3: Uses of reclaimed water in Japan.
  • 10.4 Tokyo
  • Figure 10.4: Volume of reuse water used by type of system.
  • 10.5 Osaka
  • 10.6 Other cities
  • 10.7 Forecast assumptions
  • 10.8 Forecast 2005 -- 2015
  • Figure 10.5 Forecast water reuse capacity growth in Japan 2005 - 2015
  • Figure 10.6 Forecast capital and operating expenditure on water reuse in Japan 2005 -2015
• Chapter 11: China
  • 11.1 Basic information
  • Figure 11.1 China water availability by population %
  • Figure 11.2: Water reuse profile China
  • 11.2 Introduction
  • 11.3 Current reuse practices
  • 11.4 Beijing
  • 11.5 Shanghai
  • 11.6 Tianjin
  • 11.7 Other cities
  • 11.8 Water saving cities
  • 11.9 Forecast assumptions
  • 11.10 Forecast 2005 -- 2015
  • Figure 11.3 Forecast water reuse capacity growth in China 2005 - 2015
  • Figure 11.4 Water reuse as a proportion of total new non-traditional water production in 2015
  • Figure 11.5 Capital and operating expenditure on water reuse in China 2005 - 2015
• Chapter 12: South and East Asia
  • 12.1 Basic information
  • Figure 12.1: South and East water availablitity by population %
  • Figure 12.2 South and West Asia: water reuse by treatment level
  • 12.2 Summary
  • 12.3 Forecast assumptions
  • 12.4 Forecast 2005 -- 2015
  • Figure 12.3 Forecast water reuse capacity growth in South and East Asia 2005 -2015
  • Figure 12.4 Water reuse as a proportion of total new non-traditional water production
  • Figure 12.5 Capital and operating expenditure on water reuse 2005 - 2015
  • Figure 4.5 Capital and operating expenditure on water reuse 2005 - 2015
• Section 4 - Europe, Middle East, and Africa
• Chapter 13: Europe, Middle East, and Africa
  • 13.1 Basic information
  • Figure 13.1 Water availability by population %
  • Figure 13.2: Water reuse profile for Europe, Middle East and Africa region
  • 13.2 Forecast assumptions
  • 13.3 Forecast 2005 -- 2015
  • Figure 13.3 Forecast water reuse capacity growth in EMEA region
  • Figure 13.4 Water reuse as a proportion of total new non-traditional water production in 2015
  • Figure 13.5 Capital and operating expenditure on water reuse 2005 - 2015
• Chapter 14: Western Europe
  • 14.1 Basic information
  • Figure 14.1 Water scarcity by population %
  • Figure 14.2 Profile of water reuse in Western Europe
  • 14.2 Introduction
  • 14.3 Water reuse drivers
  • 14.4 Reuse potential
  • Figure 14.3: European wastewater reuse potential 2000 vs 2025.
  • 14.5 Legal framework
  • 14.6 Spain
  • Figure 14.4: Main water reuse projects in Spain.
  • 14.7 Cyprus
  • 14.8 Greece
  • Figure 14.5: Water reuse projects in Greece.
  • 14.9 Belgium
  • 14.10 United Kingdom
  • 14.11 Italy
  • 14.12 France
  • 14.13 Forecast assumptions
  • 14.14 Forecast 2005 -- 2015
  • Figure 14.6 Forecast water reuse capacity growth in Western Europe 2005 - 2015
  • Figure 14.7 Water reuse as a proportion of total new non-traditional water production in 2015
  • Figure 14.8 Capital and operating expenditure on water reuse 2005 - 2015
• Chapter 15: Eastern Europe/CIS
• 15.1 Basic information
  • Figure 15.1 Water scarcity by population %
  • Figure 15.2 Eastern Europe water reuse profile
  • 15.2 Overview
  • 15.3 Forecast assumptions
  • 15.4 Forecast 2005 -- 2015
  • Figure 15.3 Forecast water reuse capacity growth 2005 - 2015
  • Figure 15.4 Water reuse as a proportion of total new non-traditional water production in 2015
  • Figure 15.5 Capital and operating expenditure on water reuse 2005 - 2015
• Chapter 16: Middle East and North Africa
  • 16.1 Basic information
  • Figure 16.1 Water availability by population %
  • Figure 16.2 GCC water reuse profile
  • Figure 16.3 Rest of MENA region water reuse profile
  • 16.2 Introduction
  • 16.3 Current water reuse practices
  • Figure 16.4: Annual water use and reuse in selected MENA countries.
  • 16.4 Kuwait (Sulaibiya)
  • Figure 16.5: Major treatment steps
  • 16.5 Palm Jumeirah (Dubai)
  • Figure 16.6: Palm Jumeirah WwTP hydraulic profile
  • 16.6 Saudi Arabia
  • Figure 16.7: Average daily water consumption
  • Figure 16.8 Wastewater disposal route by region
  • Figure 16.9: Water and wastewater network connections in Saudi Arabia, 2004
  • Figure 16.10 Use of treated wastewater by region
  • 16.7 The economics of water reuse in the Middle East
  • Figure 16.11: Water development costs
  • 16.8 Potential for a MENA reuse market
  • Figure 16.12 Forecast MENA region wastewater expenditure increase 2005 - 2015
  • Figure 16.13 Forecast MENA region wastewater treatment capacity growth 2005 - 2015
  • 16.9 GCC Forecast assumptions
  • 16.10 GCC Forecast 2005 -- 2015
  • Figure 16.14 Forecast water reuse capacity growth in the GCC region
  • Figure 16.15 Water reuse as a proportion of total new non-traditional water production in 2015
  • Figure 16.16 Capital and operating expenditure on water reuse 2005 - 2015
  • 16.11 Forecast assumptions
  • 16.12 Forecast 2005 -- 2015
  • Figure 16.17 Forecast water reuse capacity growth in the GCC region
  • Figure 16.18 Water reuse as a proportion of total new non-traditional water production in 2015
  • Figure 16.19 Capital and operating expenditure on water reuse 2005 - 2015
• Chapter 17: Israel
  • 17.1 Basic information
  • Figure 17.1: Israel Current Water Reuse Data
  • 17.2 Introduction
  • 17.3 Legal arrangements
  • 17.4 Sector Organisation & Structure
  • 17.5 Mekorot
  • 17.6 Water Reuse Drivers
  • 17.7 Other advanced water treatment
  • 17.8 Water Plan (2002-10)
  • Figure 17.2: Israel Water Plan (2002-10) investment distribution.
  • Figure 17.3: Agricultural sector consumption targets 2004-10 (million m3/yr).
  • 17.9 Forecast assumptions
  • 17.10 Forecast 2005 -- 2015
  • Figure 17.4: Forecast water reuse capacity growth in Israel
  • Figure 17.5: Water reuse as a proportion of total new non-traditional water production in 2015
  • Figure 17.6: Israel operating and capital expenditure 2005 - 2015 198
• Chapter 18: Sub-Saharan Africa
  • 18.1 Basic information
  • Figure 18.1: Namibia water availability by population % 200
  • Figure 18.2: South Africa water availability by population % 200
  • Figure 18.3: South Africa Current Water Reuse Data
  • 18.2 Introduction
  • 18.3 Forecast assumptions
  • 18.4 Forecast 2005 -- 2015
  • Figure 18.4 Forecast water reuse capacity growth in Namibia 2005 - 2015
  • Figure 18.5: Namibia operating and capital expenditure 2005 - 2015
  • Figure 18.6: South Africa water reuse as a proportion of non-traditional water sources 2015
  • Figure 18.7: Forecast water reuse capacity growth in South Africa 2005 - 2015
  • Figure 18.8: South Africa operating and captital expenditure 2005-2015
  • Figure 18.9: Rest of Sub-Saharan Africa water reuse as a proportion of non-traditional water sources 2015
  • Figure 18.10: Forecast water reuse capacity growth in Rest of Sub-Saharan Africa 2005 - 2015
  • Figure 18.11: Rest of Sub-Saharan Africa operating and capital expenditure 2005 - 2015
• Section 5 - Companies
  • 19.1 Allied Engineers Inc. (AEI)
  • 19.2 Aquatec International Corporation
  • 19.3 Bahman Sheikh Consultants
  • 19.4 Biwater
  • 19.5 Black & Veatch
  • 19.6 Boyle Engineering
  • 19.7 CDM
  • 19.8 Carollo Engineers
  • 19.9 CH2M Hill
  • 19.10 Degrémont
  • 19.11 Dow Chemical Company/Filmtec
  • 19.12 Earth Tech
  • 19.13 GE Infrastructure Water & Process Technologies
  • 19.14 GE Ionics
  • 19.15 Hydranautics
  • 19.16 Hyflux
  • 19.17 Infilco Degremont (IDI)
  • 19.18 ITT Fluid Technology
  • 19.19 Keppel Engineering
  • 19.20 Koch Membrane Systems
  • 19.21 Kubota Corporation
  • 19.22 Malcolm Pirnie
  • 19.23 Metito
  • 19.24 MWH
  • 19.25 Pall Corporation
  • 19.26 Parsons Brinckerhoff (PB)
  • 19.27 SADYT
  • 19.28 SembCorp Water
  • 19.29 Sinclair Knight Merz
  • 19.30 Toray Industries
  • 19.31 United Engineers (UEL)
  • 19.32 US Filter/Siemens
  • 19.33 VA Tech Wabag
  • 19.34 Veolia Water Systems
  • 19.35 Weir Techna (Weir Group)
  • 19.36 X Flow
  • 19.36 Zenon Environmental