Feasibility Study for a Desalination Plant Using Renewable Energy
Feasibility Study for a Desalination Plant Using Renewable Energy
The feasibility study for a desalination plant using renewable energy involves the treatment and desalination of seawater or brackish water, converting it into water suitable for human, agricultural, and industrial use using sustainable technologies that rely on renewable energy sources such as solar or wind power.
Project Objective: This project aligns with the global and local trend towards achieving environmental sustainability, reducing reliance on fossil energy sources, and meeting the growing demand for water in areas with limited water resources.
The project involves establishing a fully integrated industrial unit equipped with desalination plants using reverse osmosis (RO) or distillation technologies. It will be connected to a network of solar panels or wind turbines to generate the necessary electricity to power the plant.
Investment Opportunity Content
Targeted Products and Services:
Targeted Products and Services:
Main Products
Pure desalinated water suitable for drinking.
Treated water for agricultural use.
Industrial water free from salts and heavy metals.
Healthy water packaging (5L, 10L, 20L).
Supporting Services
Supply to government and private entities.
Long-term contracts with farms, factories, residential and commercial establishments.
Installation of small desalination systems for homes or remote villages.
Community awareness on the importance of preserving water resources.
Market and Demand Analysis
Market and Demand Analysis
Saudi Arabia is one of the most water-dependent countries in the world due to its desert climate and limited natural fresh water resources. With the increasing population, urban expansion, and industrial growth, the need for new water sources that rely on sustainable solutions is rising.
Locally:
The Kingdom produces more than 7 million cubic meters of desalinated water daily.
Remote areas and villages require desalination plants powered by clean energy due to their distance from the electrical grid.
The use of desalinated water in agriculture is expanding as part of food security strategies.
Regionally and Internationally:
Gulf countries face similar water challenges and require similar solutions.
There is demand for small and medium-sized desalination units, particularly in Africa and Asia.
Project Advantages
Project Advantages
Sustainable Environmental Solution: Reduces carbon emissions by utilizing clean energy sources.
Constant and Growing Demand: Water is a daily necessity, unaffected by market fluctuations.
Diversified Revenue Streams: From water sales to providing technical solutions and operational services.
Operational Flexibility: Possibility of expanding the plant or opening branches in new areas.
Government and Legislative Support: The state encourages projects that contribute to water security and reduce the consumption of traditional fuels.
Investment Advantages
Investment Advantages
Guaranteed and Long-Term Returns: Thanks to the continuous demand for water.
Low Operating Costs After Establishment: Due to reliance on renewable energy.
Opportunities for Export or Expansion: Especially within agricultural and industrial areas in the Kingdom.
Strong Competitive Edge: Few plants combine desalination with clean energy.
Positive Social Impact: The project is perceived as a value-added initiative for both the community and the environment.
Financial Indicators
Financial Indicators
Estimated Capital: Ranges between 12 to 18 million SAR, depending on production capacity, the type of technology used, and the source of renewable energy.
Expected Return on Investment (ROI): Estimated between 20% to 26% annually, with potential increase upon full operation and securing government contracts.
Payback Period: Approximately 4 to 5 years.
Break-Even Point: Typically achieved in the third year.
Proposed Locations: The project can be established in areas such as the Eastern Province, NEOM, Jazan coastal region, or industrial zones in Madinah and Yanbu, due to proximity to the sea and growing water demand.
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