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Eskom Challenged on Water-Energy Tightrope

On 18 September 2013, South African state utility Eskom reaffirmed delays to the construction of the 4.8 GW Medupi coal power station located in the Waterberg district of Limpopo province, moving its deadline from December 2013 to second half of 2014 for commissioning the first turbine units. The plant already missed several key milestones in 2011-2012 due to labor unrest, faulty welding, and systems defects for controls and instrumentation and is facing additional water supply constraints from the outset.

IWPs Eyeing Chile Desalination Sector

On 3 October 2013, Chile-based AES Gener announced plans to issue debt to support increased investment in its core power business activities and an expansion into water desalination. AES Gener, an IPP, 71% owned by US-based AES Corporation with a presence in Chile, Argentina, and Colombia, is the largest thermal generator and second largest electricity generator in Chile, operating 21% of the country’s total generating capacity with 2,858 MW thermal and 271 MW hydro power.

Arab Spring Reality Reflected in Water Buildout

On 20 August 2013 Jordan’s Cabinet announced it would move ahead with the US$980M Red Sea desalination project. The government intends to float a tender before the end of 2013 to initiate project development, which is to provide with approximately 550,000 m3/d of desalinated water. Included in the project scope will be to transfer the water to Israel to defray some of the project costs and to discharge brine into the Dead Sea. It is expected that the project will be organized on a BOT or BOO basis. The Jordan government expects to secure US$300-400 million in grants to finance the project.

SWRO Retrofit Underscores Opportunity for ERD Suppliers

In July 2013, Energy Recovery, Inc. of San Leandro, U.S. announced a contract with Cadagua S.A. of Bilbao, Spain to supply ERI’s isobaric PX Pressure Exchangers for Phase I of the retrofit to the Valdelentisco SWRO plant in Murcia, Spain. Cadagua, an EPC and O&M firm with a global SWRO portfolio of nearly 800,000 m3/d, provides O&M services to the Valdelentisco plant. Valdelentisco, with a nominal capacity of approximately 140,000 m3/d, was outfitted with turbine ERD at the time of its commissioning in 2007. The value of the ERI-Cadagua contract was undisclosed.

Manila Water Diversifies Southeast Asia Position

On 21 August 2013, the MWC acquired a 31.46% stake in Vietnam water utility SWIC. The deal needs to be ratified by SWIC within 105 days. SWIC, formerly Saigon Infrastructure Real Estate Investment Joint Stock Company, shifted its focus in 2011 toward integrated water and wastewater treatment services.

South Africa Desalination Inches Forward

On 3 July 2013, the South Africa DWA reemphasized its strategy to scale national water conservation and management practices, including desalination and reuse. The newly released National Water Resource Strategy (NWRS2) document, an extension of the government’s 2012 water directive, projects large scale seawater desalination, brackish water desalination, mine water treatment, and municipal and industrial wastewater reuse to meet South Africa’s future water demand. South Africa has been recorded as the 29th driest of 193 measured countries, with an estimated 1,110 m3/person available in 2005. Total installed desalination is approximately in South Africa is 64,850 m3/day, supplying municipal and industrial off-takers.

Mitsui, Japanese Expand Global Water Footprints

In July 2013, Mitsui & Co. acquired a 49% stake in Czech Republic water system operator Severomoravske vodvody a kanalizace Ostrava a.s. (SmVaK). Mitsui’s newly established subsidiary, Mit Infrastructure Europe Ltd. (MIE) acquired the stake from Aqualia Czech, S.L. a subsidiary of Spain Based FCC S.A. SmVaK produces and supplies drinking water to 1.3 million users and owns a 6,000-kilometer supply network along with 41 water and 67 wastewater plants. The price of the acquisition is Û97 million. The Mitsui acquisition follows on the heals of FCC’s (Aqualia) 10 June 2013 agreement to sell its 50% stake in Proactiva Medio Ambiente to its joint venture partner Veolia Environnement for Û150 million.

Sembcorp Presses Independent Water Position

On 20 May 2013, Singapore-based Sembcorp signed a joint venture with Takamul Investment Company, a subsidiary of OOC to develop centralized utility facilities for Oman’s Ad Duqm Special Economic Zone. The CUC is a 65/35 joint venture between Takamal and Sembcorp, respectively. The CUC will provide water, wastewater, power, steam, and logistics. OOC’s refinery and petrochemical facility will serve as the anchor tenant.