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Neom in desalination contractor talks

5 December 2023

A consortium of Neom subsidiary Enowa, Japan’s Itochu and France’s Veolia is still undertaking discussions with potential engineering, procurement and construction (EPC) contractors for the planned zero liquid discharge (ZLD) seawater reverse osmosis desalination plant in Neom.

According to a source close to the project, active discussions are under way and an EPC contractor has not yet been selected.

MEED reported in November that the detailed technical design for the project was being carried out.

The three companies signed a joint development agreement to develop the scheme the following month.

The project is understood to require an investment of between $1.5bn and $2bn.

In June last year, Enowa signed a memorandum of understanding (MoU) with Itochu and Veolia to develop the plant, which will be powered by renewable energy in Oxagon, Neom’s industrial cluster.

At the time, the team said the project’s target commercial operation date is 2025.

The plant is expected to meet about 30 per cent of Neom’s projected total water demand once complete. 

Advanced technology

In addition to using 100 per cent renewable energy, the proposed state-of-the-art desalination plant will use advanced membrane technology to produce separate brine streams.

This will enable the production of brine-derived products, which will be developed and monetised downstream.

The project will convert brine, the main waste output of desalination, into industrial materials that can be used locally or exported internationally.

According to Enowa, brine generated from the desalination plant will be treated to feed industries utilising high-purity industrial salt, bromine, boron, potassium, gypsum, magnesium and rare metal feedstocks.

Neom appointed Japan’s Sumitomo Mitsui Banking Corporation as financial adviser for the project. UK-based DLA Piper is the legal adviser and Canada’s WSP is the technical adviser. 

In March this year, Australian consultancy Worley said it had commenced work to provide engineering and advisory services to Enowa for the project, which will deliver up to 2 million cubic metres of desalinated water a day (cm/d) to Neom.

The services will be executed by both Advisian, Worley’s global consulting business, and Worley staff.

Advisian will focus on advisory, consulting and pre-front-end engineering and design (feed) activities, while Worley will deliver feed, detailed engineering, procurement and project management services.

The project scopes relate to water production, brine beneficiation, management and storage.

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Jennifer Aguinaldo

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