Asian water utilities and technologies are playing an increasingly significant role in the global water sector. In drought zones and super-cities the challenges of water management are many, but several companies in Israel and Singapore have developed cutting edge technology and optimal water efficiency in order to meet ever greater demands.
Israel uses innovation to target global water market
Mekorot, Israel’s national water company, is looking to move into the global water market by using its expertise in finding unconventional sources for clean water.
Several countries, including the UK, are stepping up their efforts to avoid future water shortages in the face of population growth and climate change. The Organisation for Economic Cooperation and Development (OECD) predicts that by 2050 global water demand will increase by 55 per cent.
Since its inception in 1948, Israel’s water industry has been dealing with water shortages and has emerged as a global leader in managing water supply. Mekorot is responsible for nearly every aspect of water management in Israel and has helped build a network of some of the world's biggest desalination plants and wastewater facilities.
The country has now developed a billion-dollar industry by marketing its skills and technologies in fields like wastewater reuse, water security and desalination.
Mekorot is expected to invest a further $1.5 billion by 2016 to help reach the target of reclaiming 90 per cent of Israel's wastewater, primarily for irrigation, by far the highest level in the world. According to the company, 75 per cent of wastewater is currently reused, with Spain a distant second at 12 per cent.
Mekorot's capabilities, along with those of a growing number of smaller Israeli water technology companies, are in high demand, says Oded Distel, who runs the government's program to promote clean technologies.
Israeli companies currently have a very small presence in the UK, but this country could undoubtedly benefit from their technology and an increasing presence is likely. Israel-based Arad Limited currently has a £36m contract with Southern Water to supply AMR water meters and meter reading services.
Moreover, in March this year, the ‘Technology Splash’ event run by global law firm Pinsent Masons introduced UK investors, utilities and engineering firms to Israeli water-tech companies. The 80 attendees heard presentations from Israeli firms such as AGM, Diffusaire, Miltel, PML and Tal-Ya about their technologies in the fields of wastewater treatment and water analysis.
Singapore – strong emphasis on R & D and test bedding
Another leader in the global water sector is Singapore, thanks to its strong emphasis on water technology R&D and test bedding, something which the UK water sector currently appears to lack.
Recent news reports say that Singapore’s water industry has grown to 100 companies, up from about 50 in 2006. Over the same period Singapore-based water companies have secured over 100 international projects worth S$9 billion. In 2011 alone investments added S$130 million to the value of the industry.
“The growth of the water industry over the last five years is backed by a strong foundation in water management that has propelled Singapore from a water-challenged nation to an internationally-recognised name in the global water community. With an integrated approach to water management, sound water policies and investments in water technologies, Singapore has turned its vulnerability into a valuable asset today. R&D and technology is a key driver of this vibrant eco-system that spans the entire water value chain from consultancy to O&M, to equipment suppliers,” says Chew Men Leong, Chief Executive of the national water agency Public Utilities Board (PUB) and executive director of the Environment and Water Industry Programme (EWI).
EWI is an inter-agency body led by PUB, the national water agency, and involves the Economic Development Board (EDB), International Enterprise (IE) Singapore and SPRING Singapore. EWI has identified technology development, cluster development and internationalisation of Singapore-based companies as three strategic thrusts to grow the water industry.
Singapore success due to close link between industry and technology R and D
The success of the Singapore water sector is undoubtedly down to the close relationship between the industry and technology R&D.
To date, S$470 million in cumulative research funding has been committed by the National Research Foundation (NRF) through EWI to drive public and private sector water research. This has resulted in the establishment of 25 private and public R&D centres, up from just three in 2006.
In addition, PUB has also taken a major role in generating research and innovation activities in water technologies by collaborating with R&D centres and private water companies. Some of these collaborations have been facilitated by EWI schemes like TechPioneer which encourages water companies to treat Singapore as a Living Laboratory so that cutting edge technology can be testbedded and commercialised in a real-life environment. PUB, together with the local research community has undertaken 348 R&D projects valued at S$221 million.
Several Singapore companies like Hyflux, Keppel, Moya Asia, Salcon and Sembcorp have successfully exported their water expertise to key overseas markets such as China and the Middle East region. Last year, Moya Asia clinched an S$145 million 25-year build-operate-transfer (BOT) project on a fresh water treatment complex in Tangerang City, West Java, Indonesia.
Hyflux is a major player in the Chinese water sector with Chinese water assets worth around US$440 million and expects to see further strong growth. Sembcorp meanwhile has recently signed an agreement to build, own and operate an industrial wastewater treatment plant in China.
Sembcorp has a presence in UK through its subsidiary Sembcorp Utilities, which took ownership of Bournemouth and West Hampshire Water in July 2010 and the company was renamed Sembcorp Bournemouth Water in January 2011.
Innovation is a slow process in the UK water sector, with limited funding available and a risk-averse mindset still prevalent in the industry to some extent. Taking a leaf from Singapore’s book could enable the water industry to instigate a much needed step change if it is going to meet the challenges posed by climate change and population growth.