Saudi Arabia seeking expertise of Korean companies to build desalination
projects in Neom
Saudi Arabia is seeking the expertise of Korean companies to construct seawater
desalination projects in Neom City.
The oil-rich kingdom plans to produce 100 percent of the electric power
required to desalinate seawater for the eco-friendly future new
city with renewable energy.
The key issue is whether green energy can
be stably produced to supply drinking water to Neom City. Industry
insiders estimate that Saudi Arabia could use nuclear power rather than solar
or wind power for the desalination projects to ensure a stable supply of power
to multiple desalination plants. Analysts say that Doosan Enerbility will
become the biggest beneficiary in this regard.
South Korea’s Doosan Enerbility is a
company which is an expert in not only nuclear and renewable energy, but also
seawater desalination. It is one of the few companies with expertise
in both evaporative and reverse osmosis technologies. It leads the global industry
in evaporation technology and stands out in reverse osmosis technology. It
also has a number of project experiences in Saudi Arabia and the Middle East,
including the 840 billion won seawater desalination project it won in August.
GS Inima is also expanding its presence in
the Middle East. GS Engineering and Construction made the company,
headquartered in Spain, a subsidiary in 2019 through steady stock purchases. In
addition to seawater desalination, it is also engaged in the wastewater
purification facility business. In 2020, it landed a project worth 2.3 trillion
won from the Middle East.
Hyundai E&C and Hyundai Heavy
Industries Group are also expected to catch great opportunities in light of
their long-standing relationships with Saudi Arabia. Hyundai E&C had
successfully completed every project from the Saudi Alcoba Desalinization
Project in 1979 to a project awarded by Aramco in 2019.
Among materials companies, Korea’s LG Chem is
a strong player in the filter market. Filters are a key material and consumable
for reverse osmosis desalination. With a 21 percent market share, it ranks
second in the global filter market following Japan’s Toray. In 2014, it
acquired NanoH2O in the United States and jumped into the filter market. It has
won orders worth US$84 million for 12 projects in Saudi Arabia, the UAE, Egypt,
China, and Oman. It plans to deliver more than 220,000 filters by 2025.
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