Capitalize on water: the globe's most precious asset
In the face of a looming global water crisis, desalination technology is making significant strides towards becoming a scalable, energy-efficient, and environmentally sustainable solution to the world's water scarcity.
The focus of innovations in the field revolves around reducing energy consumption, integrating renewable energy, lessening environmental impact, and leveraging Artificial Intelligence (AI) for operational optimization.
One of the key advancements is the use of Energy Recovery Devices (ERDs) in reverse osmosis (RO) plants. These devices, now widely implemented, recapture pressure energy from brine streams, cutting energy use by up to 60-70%. Low-pressure and hybrid membranes further lower electricity demands and maintenance costs, making desalination more cost-effective.
Solar, wind, and wave power are increasingly integrated into desalination facilities, particularly modular and mobile systems, enabling off-grid and sustainable freshwater production with lower greenhouse gas emissions. New offshore and deep-sea modular desalination pods minimize environmental harm by avoiding sensitive coastal areas and controlling brine discharge more responsibly, preserving marine ecosystems while producing freshwater efficiently.
Artificial intelligence plays a crucial role in enhancing monitoring, predictive maintenance, and process control at scale. AI reduces energy consumption by 15-20%, improves output consistency, and lowers chemical usage in large plants. It optimizes membrane performance and brine management, helping scale production cost-effectively.
Innovations like graphene oxide membranes and improved RO membranes with over 99.7% salt rejection operate at lower pressures, resist fouling better, and maintain high water quality, significantly cutting costs and expanding usability to challenging environments.
As desalination evolves from an energy-intensive last resort into a more viable, efficient, and environmentally conscious water supply technology, the global water sector requires substantial investment. Opportunities for investors in the desalination sector are particularly significant, with the global water desalination market projected to be worth €17.5bn this year and to expand at a compound annual growth rate of 8.7% to 2031, reaching $31.3bn.
The planet is facing an unprecedented water crisis, with global demand for freshwater predicted to exceed supply by 40% by 2030. Approximately 71% of the world's surface is covered by water, but more than two-thirds of this 2.5% is contained in glaciers and polar ice caps. Only 1% of global freshwater is actually surface water, making desalination a promising solution for arid, coastal, and off-grid regions.
The seawater reverse osmosis (SWRO) procedure is a relatively energy-efficient and cost-effective method for desalinating seawater. Safely managed wastewater can also be an affordable and sustainable source of water, energy, nutrients, and other recoverable materials. However, pollution and lack of rainfall have squeezed supplies even more, making it essential to invest in water-related infrastructure.
According to the 2030 Water Resources Group, an estimated $6.7trn for water-related infrastructure will be needed by 2030, reaching $22.6trn by 2050. Approximately 30% of the global freshwater is groundwater (under the Earth's surface), but it is not always accessible or sustainable. Unesco states that 80% of the world's wastewater is currently left untreated and released into nature. An estimated $150bn is needed each year to deliver universal safe water and sanitation.
Companies like Consolidated Water (Nasdaq: CWCO) are already making strides in the desalination sector. They design, build, operate, and finance SWRO desalination plants and water-distribution systems in several Caribbean countries. They also provide design, engineering, management, equipment manufacturing, and operating services for commercial and municipal water production, supply, and treatment, as well as for industrial water and wastewater treatment.
Middle Eastern countries already use SWRO for as much as 90% of their drinking water needs, demonstrating the technology's viability and importance in addressing global water scarcity while balancing sustainability and ecosystem health.
- The integration of Artificial Intelligence (AI) in desalination plants can reduce energy consumption by 15-20%, making it a more financially attractive option for personal finance and investing in the desalination sector.
- In the environmental-science field, the use of energy recovery devices (ERDs) in reverse osmosis (RO) plants has significantly lessened the environmental impact of desalination, as they recapture pressure energy from brine streams and cut energy use by up to 60-70%.
- One of the 2030 Water Resources Group's recommendations for addressing the global water crisis is investing in water-related infrastructure, which is estimated to require $6.7trn by 2030 and $22.6trn by 2050.
- With an increasing global focus on sustainable energy, desalination facilities are incorporating solar, wind, and wave power, such as the integration in modular and mobile systems, to produce fresh water with lower greenhouse gas emissions. This tech-driven approach to water production is a focal point for advancements in science and technology.
