Report Type: Research Note

Brief research summaries of market development or company strategies.

Anaergia Draws Attention to U.S. Wastewater Niche

On 26 September 2014, the Victor Valley Wastewater Reclamation Authority (VVWRA) in California commissioned a biogas capture and power facility to upgrade its 14.5 MGD wastewater treatment plant to operate independent of the power grid by 2015. It represents the first wastewater plant in the US to meet 100% of energy demand from on-site power generation. Anaergia, a Canadian energy group, will own and operate the renewable energy system based on a 20-year power purchase agreement with VVWRA. The US$2.6 million system is funded by a California Energy Commission grant and $600,000 invested by Anaergia.

Saur Seeks New Angles for International Growth

In September 2014 Groupe Saur completed several key water network management projects in the city of Mecca in preparation for the 2014 Hajj pilgrimage in which water consumption is anticipated to spike to 10 million m3 per day as the city’s population reaches over 4.5 million. These projects included implementation of new SCADA systems and network monitoring equipment, as well as a strategic water storage plan for its client National Water Company of Saudi Arabia (NWC).

Water Expansion Gains Priority for Acciona

Integrated Spanish EPC player Acciona Group has announced three O&M contract wins between 1-17 September 2014, bolstering its position in the global water sector. The awards include a desalination plant in Oman, a wastewater treatment plant in Italy, and a water supply pumping station with wastewater treatment plant in Spain.

UK Fracking Players Find Value in U.S. Experience

On 28 July the British government opened up the application process for shale gas exploration (fracking) licenses. Applications for new fracking licenses can be made until 28 October 2014. In addition to exploration licenses from the Department of Energy and Climate Change (DECC), and before drilling itself will be permitted, companies will have to obtain planning consent, permits from the Environment Agency, and approval from the Health and Safety Executive.

Tender to Boost Philippines Water Competition

On 20 June 2014, bidding opened for the Philippines’ US$542 million Bulacan Bulk Water Supply (BBWS) project. It will deliver potable water to cities in Bulacan province north of Manila with a build out capacity 1.5 million m3/d in 2030. Final bids from approved bidders are expected in January 2015, ground breaking anticipated in Q4 2015, commissioning in Q4 2016.

UK Utilities in Safe Waters with Policy Shifts

On 18 August 2014, UK’s Water Services Regulation Authority (Ofwat) communicated its plan to switch from ‘retail minus’ to ‘wholesale bottom-up’ as the basis to set water utilities’ access pricing. This forms part of the UK Water Act 2014 that will unbundle the country’s utility licenses and introduce competition into the non-residential segment by 2017. The government estimates that this will create an open market of roughly 1.1 million customers.

Arcadis, AECOM Alter Water EPC Design Rankings

On 21 August 2014, Netherland’s-based EPC, Arcadis submitted a US$477 million bid for UK-based Hyder Consulting. This represents Arcadis’ second bid after its $425 million was topped by Nippon Koei’s US$445 million offer on 11 August 2014.

Mirfa Tops Up Suez IWPP Position

On 3 July 2014, Abu Dhabi Water and Electricity Authority (ADWEA) finalized a 25-year water purchase agreement with GDF Suez for the Mirfa independent water and power producer project (IWPP). The agreement is the final step to close a US$1.5 billion deal that includes the purchase of existing infrastructure at the Mirfa complex, and the financing of additional capacity.