Saudi Water Authority Announces Localization of Energy Recovery Devices Manufacturing

Saudi Arabia is set to become the first nation outside the United States to manufacture energy recovery devices (ERDs), a critical component in the desalination industry. The Saudi Water Authority (SWA) announced the establishment of a new manufacturing facility, marking a significant step towards localizing this advanced technology. Previously, ERDs were manufactured exclusively in the US market. The new facility, operated by Energy Recovery, Inc., will commence production in the first quarter of 2027 with an annual capacity of 2,000 units, exceeding Saudi Arabia's estimated annual demand of 1,200 units. This will ensure local self-sufficiency and allow for exports to markets across the Gulf Cooperation Council (GCC), Africa, and Asia. ERDs are vital for improving the efficiency of desalination plants by reducing energy consumption and operating costs. The local manufacturing initiative aims to decrease reliance on imports, expedite product availability, and enhance supply chain reliability, thereby supporting uninterrupted water production. The market potential for this sector is estimated at over SAR547 million, with significant portions in the Saudi and broader MENA markets. By 2033, the project is projected to contribute approximately SAR137 million to Saudi Arabia's GDP. It is also expected to generate over 50 direct jobs and achieve more than 80% local content in its value chain. Furthermore, the project will facilitate knowledge transfer and bolster national capabilities in advanced desalination technology manufacturing. This strategic move, a result of collaboration between the SWA and several ministries, positions Saudi Arabia as a regional hub for ERD production, strengthening supply chain security and enhancing the competitiveness of its water technology industry.