Desalination industry to clock slower growthDesalination industry to clock slower growth.doc

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Desalination industry to clock slower growthDesalination industry to clock slower growth.doc

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Desalination industry to clock slower growth Order intake in the sector has fallen by 20.7 per cent this year due to the recession. By Karen Remo-Listana Published Monday, November 09, 2009 Seawater desalination sector to hit $16bn in 2020. (EB FILE) The order intake in the desalination industry has fallen by 20.7 per cent this year due to the recession, a huge drop compared to the 11.7 per cent increase recorded in 2008.This will feed through into a slower expansion of global desalination capacity during 2010 and 2011, according to reports presented by the International Desalination Association (IDA) and Global Water Intelligence (GWI) DesalData service yesterday.But the rate of growth in orders is expected to pick up in subsequent years, similar to what was witnessed in the past few years.The rate of growth slowed in 2008 and 2009 as a function of the global economic downturn, as many plants were put on hold due to the industryapos;s difficulty in obtaining project financing, said Lisa Henthorne, IDA President.Despite the slow down in orders – primarily attributed to the tightness of the capital/debt market – the industry continues to grow. This is because although there is a shortage of funds today, the fact remains that the need for water continues to grow as population grows, issues on climate change looms and industries continue to develop.According to the 22nd DesalData IDA Worldwide Desalting Plant Inventory, there are 14,451 desalination plants with a combined capacity of 59.9 million cubic metres per day now online.This represents an increase of 12.3 per cent over last year. In addition, a further 244 plants with a capacity of 9.1 million cubic metres per day are known to be under contract.One of the major trends is the sharp growth in demand for seawater desalination.Since IDAapos;s last World Congress in 2007, the installed capacity of seawater desalination plants has grown by 29.6 per cent, said Henthorne.Currently seawater represe