RIYADH: Nasdaq-listed Energy Recovery will build a desalination technology factory near Dammam Second Industrial City, in a project expected to contribute SR137 million ($36.54 million) to Saudi GDP by 2033.
The energy recovery devices plant is the first such facility by the company outside the US, and will create more than 50 direct jobs.
It will produce 2,000 energy recovery devices annually — enough to meet estimated local demand of about 1,200 units a year — while exporting around 40 percent of its output to Gulf Cooperation Council countries, Africa and Asia, according to the Saudi Water Authority.
In a press release, Energy Recovery said it will establish a 3,750-sq.-meter manufacturing facility near Dammam Second Industrial City, with production scheduled to begin in the first quarter of 2027.
The site will be the California-based company’s first manufacturing operation in the Kingdom and its first production facility outside the US for its proprietary PX Pressure Exchanger technology.
The facility comes as Saudi Arabia expands private-sector participation in its water infrastructure.
Projects tendered by the Saudi Water Partnership Co. have attracted SR56 billion in privately financed investment and secured contracted desalination capacity exceeding 10 million cubic meters per day, according to the Saudi Press Agency.
Mohammed Al-Shaikh, vice president of strategic partnerships and local content at the Saudi Water Authority, said: “Localizing advanced water technologies and manufacturing capabilities is fundamental to strengthening Saudi Arabia’s water security and achieving the objectives of Vision 2030.”
He added: “Energy Recovery’s decision to establish manufacturing operations in Dammam reflects the Kingdom’s success in attracting high-value industrial investments that support technology localization, develop national capabilities, enable Saudi talent, and build a competitive and resilient domestic supply chain.”
Manufacturing and localization
Energy Recovery will operate through Energy Recovery Co., a wholly owned Saudi subsidiary.
The plant will complement the company’s existing California operations while supporting the development of manufacturing expertise and technology transfer in the Kingdom, Energy Recovery said.
The Saudi Water Authority said the factory would localize the production of one of the desalination industry’s key technologies, which until now has been manufactured exclusively in the US.
The project is expected to achieve a localization rate exceeding 80 percent across the product’s value chain while helping establish Saudi Arabia as a regional production and export hub for energy recovery devices.
“We welcome this investment as an important contribution to Saudi Arabia’s long-term ambition to become a regional hub for advanced water technologies and sustainable industrial growth,” said Al-Shaikh.
The authority said market opportunities for the technology exceed SR547 million, including around SR247 million in Saudi Arabia and SR300 million across the Middle East and North Africa, providing a long-term demand base to support production and exports.
“Geographic diversity in our manufacturing footprint has been a linchpin of our operating strategy, and this facility is a concrete step in that direction,” said Alex Buehler, interim president and CEO of Energy Recovery and a member of its board.
He added: “A Saudi Arabian manufacturing presence complements our existing operations in California and positions us closer to the customers and markets at the center of global desalination.”
Saudi Arabia and other Gulf countries depend heavily on desalination for drinking water and industrial development. Energy Recovery said rising regional demand has increased the need to locate manufacturing capacity closer to desalination customers.
Imad Al-Sharif, vice president of sales and general manager of Energy Recovery Co., said manufacturing the PX technology in Saudi Arabia would allow the company to serve the Kingdom and the wider region more directly.
Desalination footprint
Energy Recovery has supplied the desalination industry for more than 30 years. Its Pressure Exchanger technology is used in facilities producing 43.6 million cubic meters of fresh water daily — equivalent to roughly 17,000 Olympic-sized swimming pools.
The technology reduces energy consumption in seawater desalination by up to 60 percent, helping customers save an estimated $7.2 billion in annual energy costs, according to the company.
