Interview: practitioners on water security & desalination (angle 3)

By 2025, an estimated 2.4 billion people across Asia-Pacific will face severe water stress, with the region's desalination capacity projected to reach 28 million cubic meters per day—a 40% increase from 2020 levels. As corporate water stewardship frameworks tighten and disclosure mandates expand, sustainability leads are navigating an increasingly complex procurement landscape. We spoke with practitioners across Singapore, Australia, India, and Japan to understand how emerging standards are reshaping buyer requirements and what separates credible desalination investments from greenwashed offerings.

Why It Matters

Water security has emerged as the defining infrastructure challenge of the 2020s across Asia-Pacific. The Asian Development Bank's 2024 Water Security Report indicates that 80% of the region's countries face moderate to severe water stress, with industrial water demand expected to grow 55% by 2030. In Australia alone, the 2024-2025 drought conditions have pushed the Sydney Desalination Plant to operate at 100% capacity for the first time since its construction.

For sustainability leads, water procurement decisions now carry significant regulatory weight. The Corporate Sustainability Reporting Directive (CSRD), effective January 2024 for large enterprises, mandates detailed water-related disclosures including consumption intensity, stress area sourcing, and infrastructure dependencies. Singapore's Enhanced Sustainability Reporting requirements, implemented in 2024, similarly require listed companies to report water-related risks aligned with Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

The financial stakes are substantial. McKinsey's 2024 analysis estimates that Asia-Pacific corporations face $150 billion in water-related stranded asset risk by 2030. Meanwhile, the desalination market in the region is valued at $8.7 billion in 2025, with projections suggesting 8.2% compound annual growth through 2030. For buyers, distinguishing between solutions that deliver genuine water security additionality versus those that simply shift risk or externalize environmental costs has become a core procurement competency.

"We're seeing a fundamental shift in how our clients evaluate water infrastructure," notes a senior sustainability consultant at ERM based in Singapore. "Three years ago, price per cubic meter was the primary metric. Today, lifecycle carbon intensity, brine management protocols, and alignment with science-based targets dominate procurement criteria."

Key Concepts

Additionality: In water procurement contexts, additionality refers to whether a desalination investment creates new freshwater capacity that would not otherwise exist, or whether it merely displaces existing supply sources. Credible additionality requires demonstrating that the project fills a genuine supply gap, does not cannibalize renewable freshwater sources, and generates measurable improvements in water security metrics. Under emerging verification frameworks like the Alliance for Water Stewardship (AWS) Standard 2.0, additionality claims must be third-party verified.

Water Offsets: Analogous to carbon offsets, water offsets involve investing in water conservation, efficiency, or restoration projects to compensate for water consumption elsewhere. The Water Benefit Partners framework, endorsed by The Nature Conservancy and adopted across several Asia-Pacific jurisdictions, requires offsets to demonstrate volumetric equivalence, permanence, and local watershed benefit. Critics note that unlike carbon, water is fundamentally local—offsetting consumption in Chennai with efficiency gains in Jakarta provides limited hydrological benefit.

Transition Plans: Water transition plans outline how organizations will shift from current water sourcing patterns to more sustainable configurations. The CEO Water Mandate's 2024 guidance specifies that credible transition plans must include baseline assessments, interim targets (typically 2030), long-term goals (2040-2050), and capital allocation pathways. For desalination buyers, transition plans increasingly specify renewable energy integration timelines, brine valorization roadmaps, and circular economy commitments.

CSRD (Corporate Sustainability Reporting Directive): The European Union's CSRD, which took effect in January 2024, establishes comprehensive sustainability reporting requirements for approximately 50,000 companies globally, including major Asia-Pacific exporters to European markets. Water-related disclosures under European Sustainability Reporting Standards (ESRS) E3 require reporting on water consumption, pollution, and marine impact—directly implicating desalination infrastructure choices.

Water Stewardship: Beyond simple efficiency, water stewardship encompasses collective action to address shared water challenges at the catchment level. The AWS Standard provides the primary certification framework, with 250+ sites certified across Asia-Pacific as of 2025. For desalination buyers, AWS certification increasingly serves as a procurement prerequisite, signaling commitment to responsible water governance.

What's Working and What Isn't

What's Working

Hybrid renewable-desalination systems in Australia: The Adelaide Desalination Plant's 2024 expansion demonstrates effective integration of variable renewable energy with membrane treatment. By coupling 180 MW of dedicated wind capacity with advanced energy recovery devices, the facility achieves energy intensity of 2.8 kWh per cubic meter—40% below the global average. The plant's power purchase agreement structure, which locks in renewable electricity prices through 2040, provides cost certainty while eliminating Scope 2 emissions.

Singapore's NEWater-desalination integration: PUB Singapore's integrated approach, combining membrane bioreactor treatment of reclaimed water with seawater desalination, optimizes energy and capital efficiency. The 2024 commissioning of the Tuas Desalination Plant, designed for 30% energy recovery through pressure exchangers, exemplifies best practice. Practitioners note that Singapore's success stems from long-term infrastructure planning horizons—typically 50 years—that justify higher upfront capital expenditure for lifecycle optimization.

India's viability gap funding model: The National Mission for Clean Ganga has successfully deployed viability gap funding to accelerate desalination adoption in coastal Gujarat and Tamil Nadu. By providing 30-40% capital subsidies conditional on operational performance guarantees, the program has commissioned 12 municipal desalination facilities since 2023 while maintaining water quality standards. Private operators, including Adani Water and SUEZ India, report that the subsidy structure de-risks projects sufficiently to attract institutional investment.

Zero-liquid discharge brine management in Japan: Toray Industries' 2024 pilot at the Fukuoka Sea Water Desalination Plant demonstrates commercially viable brine valorization. By extracting lithium, magnesium, and potassium from concentrate streams, the facility generates $2.3 million annually in mineral byproduct revenue while eliminating marine discharge. This approach addresses growing regulatory scrutiny of brine disposal impacts under Japan's revised Water Pollution Prevention Act.

What Isn't Working

Stranded thermal desalination assets: Multiple practitioners identified legacy multi-stage flash (MSF) and multi-effect distillation (MED) plants as increasingly problematic. With energy intensities of 10-15 kWh per cubic meter—versus 2.5-3.5 kWh for reverse osmosis—thermal plants face carbon cost exposure under emerging pricing mechanisms. The UAE's recent thermal plant retirements signal a broader regional trend, yet several Asia-Pacific facilities, including aging plants in Kuwait and Saudi Arabia that serve regional supply chains, remain operational without credible transition plans.

Insufficient brine management regulation: Despite growing environmental evidence of brine discharge impacts on marine ecosystems, regulatory frameworks across much of Asia-Pacific remain inadequate. A 2024 UNEP assessment found that 60% of Asia-Pacific desalination facilities discharge hypersaline effluent without treatment or monitoring. Practitioners report that this regulatory gap creates competitive distortions, as responsible operators incur costs that less scrupulous competitors avoid.

Fragmented procurement standards: The absence of harmonized buyer standards frustrates both purchasers and suppliers. "We respond to completely different specification frameworks across Singapore, Australia, and India," notes a business development director at IDE Technologies' Asia-Pacific division. "Some buyers prioritize capital cost, others lifecycle carbon, others local content. The lack of standardization increases transaction costs and delays projects by 6-12 months."

Inadequate small-scale solutions: While megaprojects attract investment and attention, practitioners consistently identified gaps in solutions for mid-sized industrial users and remote communities. Containerized and modular desalination systems exist but often lack the service infrastructure, financing options, and performance guarantees that larger facilities enjoy. This gap leaves significant water stress unaddressed in island nations and coastal communities across the Pacific.

Key Players

Established Leaders

SUEZ Water Technologies & Solutions: The French multinational operates Asia-Pacific's largest installed base of membrane systems, including flagship facilities in Singapore, Hong Kong, and Australia. SUEZ's 2024 launch of the SUEZ Water Intelligence platform, which integrates real-time monitoring with predictive maintenance algorithms, positions the company at the forefront of digital water management.

IDE Technologies: The Israeli firm has delivered over 400 desalination projects globally, with Asia-Pacific representing 30% of its current pipeline. IDE's proprietary pressure center design achieves industry-leading energy efficiency, and its 2024 partnership with JERA for a 150,000 m³/day facility in Vietnam demonstrates continued regional expansion.

Veolia Water Technologies: Following its 2022 acquisition of SUEZ's water business units, Veolia operates the world's largest water treatment portfolio. The company's Asia-Pacific headquarters in Singapore coordinates operations across 15 countries, with particular strength in industrial water recycling and zero-liquid discharge systems.

Toray Industries: The Japanese conglomerate manufactures approximately 30% of the world's reverse osmosis membranes and has invested heavily in next-generation thin-film composite technologies. Toray's 2024 announcement of a biomimetic membrane achieving 50% improved salt rejection signals continued innovation leadership.

Hyflux (restructured as Utico): Following Hyflux's 2020 collapse and subsequent restructuring, UAE-based Utico acquired the company's operational assets in 2024. The reconstituted entity operates critical Singapore infrastructure and maintains membrane manufacturing capabilities, though practitioners note ongoing questions about long-term investment capacity.

Emerging Startups

Aquaporin A/S: The Danish company's biomimetic membranes, inspired by natural water channels in cell walls, achieve 20% energy reduction versus conventional reverse osmosis. Aquaporin's 2024 Series C funding of $80 million, led by Singapore's GIC, funds Asia-Pacific expansion including a manufacturing facility in Malaysia.

Gradiant Corporation: The MIT spinoff specializes in brine concentration and zero-liquid discharge systems. Gradiant's selective desalination technology, which extracts valuable minerals while treating concentrate, addresses growing regulatory and sustainability concerns. The company's 2024 partnership with Tata Steel for industrial water recycling demonstrates commercial traction.

Modern Water: The UK-based company's forward osmosis technology offers advantages for challenging feedwaters, including high-salinity industrial effluents. Modern Water's 2024 contract for a brackish water treatment facility in Gujarat positions it for Indian market expansion.

Oneka Technologies: The Canadian startup's wave-powered desalination buoys provide off-grid freshwater production for coastal communities. Oneka's 2024 deployment in the Maldives, funded by the Asian Development Bank's climate finance window, demonstrates applicability for Pacific island nations facing sea-level rise and freshwater lens salinization.

Zero Mass Water (SOURCE Global): The Arizona-based company's hydropanels extract atmospheric water using solar energy. While not traditional desalination, the technology addresses water security in arid coastal zones. SOURCE's 2024 partnerships with mining companies in Western Australia and residential developers in Singapore signal diversifying applications.

Key Investors & Funders

Asian Development Bank (ADB): The Manila-based multilateral has committed $2.5 billion annually to water sector investments through 2030. ADB's 2024 Water Financing Partnership Facility specifically targets desalination and water reuse projects with climate adaptation benefits.

Temasek Holdings: Singapore's sovereign wealth fund maintains substantial water infrastructure investments through its portfolio companies, including stakes in regional utilities and technology providers. Temasek's 2024 launch of a dedicated water innovation fund, seeded with $500 million, targets early-stage desalination technology.

Global Infrastructure Partners (GIP): Following its 2024 acquisition by BlackRock, GIP's Asia-Pacific water portfolio—including stakes in Australian desalination assets—benefits from enhanced capital access. The combined entity's net-zero infrastructure commitment includes water security investments.

International Finance Corporation (IFC): The World Bank Group's private sector arm has financed 15 desalination projects across Asia-Pacific since 2020, deploying $1.8 billion in concessional and commercial capital. IFC's blended finance structures, combining grants, loans, and equity, address bankability gaps for first-of-kind technologies.

Breakthrough Energy Ventures: Bill Gates' climate technology fund has invested in multiple water startups, including Gradiant and Zero Mass Water. The fund's 2024 expansion of its Asia-Pacific presence, including a Singapore office, signals continued sector interest.

Examples

1. Chennai Metropolitan Water Supply and Sewerage Board (India): Chennai's 2024 commissioning of the 150 MLD Nemmeli Phase 2 desalination plant demonstrates successful public-private partnership structuring. The facility, developed by VA Tech Wabag under a 25-year design-build-operate contract, supplies 20% of the metropolitan area's drinking water. Energy intensity of 3.2 kWh per cubic meter, achieved through advanced energy recovery, positions the plant competitively. Notably, the contract includes performance guarantees tied to water quality parameters and availability, with penalties for non-compliance. The levelized cost of water—$0.72 per cubic meter—compares favorably to alternative supply options given Chennai's aquifer depletion.

2. Perth Seawater Desalination Plant Renewable Integration (Australia): Water Corporation's 2024 agreement to power the Cockburn Sound plant exclusively with renewable electricity demonstrates utility-scale decarbonization. The 143 gigaliter annual output, representing 50% of Perth's water supply, now carries verified zero Scope 2 emissions. Implementation required 180 MW of dedicated wind capacity, transmission infrastructure upgrades, and sophisticated demand-response protocols to match variable renewable generation with continuous desalination operations. Energy storage—60 MWh of grid-scale batteries—provides 4-hour ride-through capability during generation gaps. The project's total investment of AUD $450 million delivers estimated annual emissions reductions of 180,000 tonnes CO2-equivalent.

3. Tuas Desalination and NEWater Integration (Singapore): PUB Singapore's 2024 integration of the 30 MGD Tuas Desalination Plant with adjacent NEWater facilities demonstrates circular economy principles. By utilizing waste heat from NEWater's membrane bioreactors to pre-heat desalination feedwater, the integrated facility achieves energy intensity 15% below standalone desalination. The project's procurement specification required bidders to demonstrate lifecycle carbon intensity <2.5 kg CO2 per cubic meter—among the world's most stringent requirements. Keppel Infrastructure's winning proposal included commitments to brine dilution using treated effluent, reducing marine salinity impact. The $217 million project represents Singapore's continued leadership in urban water innovation.

Action Checklist

• Conduct a baseline water risk assessment using WRI Aqueduct or WWF Water Risk Filter to identify facilities in high-stress catchments requiring desalination solutions
• Review existing water procurement contracts against CSRD ESRS E3 disclosure requirements to identify reporting gaps and compliance risks
• Develop a water transition plan with 2030 interim targets specifying desalination capacity additions, renewable energy integration, and brine management improvements
• Require third-party verification of additionality claims from desalination suppliers using AWS Standard or equivalent frameworks
• Specify lifecycle carbon intensity thresholds (<3.0 kg CO2/m³) in desalination procurement specifications, with penalties for non-compliance
• Include brine management requirements in tender documents, prioritizing zero-liquid discharge or brine valorization where economically viable
• Evaluate energy procurement structures—power purchase agreements, behind-the-meter renewables, or renewable energy certificates—to ensure desalination operations align with net-zero commitments
• Engage with watershed-level collective action initiatives through CDP Water or AWS to address shared water risks beyond facility boundaries
• Establish water offset protocols for unavoidable consumption, ensuring volumetric equivalence and local watershed benefit
• Build internal capacity through training programs on water stewardship standards, disclosure frameworks, and emerging technologies

FAQ

Q: How should buyers evaluate energy intensity claims from desalination suppliers? A: Energy intensity—measured in kilowatt-hours per cubic meter of product water—serves as the primary efficiency metric for reverse osmosis systems. Best-in-class facilities achieve 2.5-3.0 kWh/m³ for seawater desalination, while older thermal systems may exceed 10 kWh/m³. Buyers should require suppliers to specify energy intensity under standardized conditions, including feedwater salinity, temperature, and recovery ratio. Third-party verification through performance testing at commissioning, with ongoing monitoring throughout the contract term, provides assurance against inflated claims. Additionally, buyers should distinguish between electrical energy input and thermal energy, as some facilities report only electrical consumption while utilizing substantial heat from external sources.

Q: What brine management approaches meet emerging sustainability standards? A: Regulatory and stakeholder expectations for brine management are tightening across Asia-Pacific. Minimal compliance involves dilution with power plant cooling water or treated wastewater before marine discharge, reducing salinity impact. Progressive approaches include brine concentration for volume reduction, selective mineral extraction for revenue generation, and ultimately zero-liquid discharge (ZLD) achieving complete water recovery. Buyers should specify brine management requirements in procurement documents, with particular attention to discharge monitoring, salinity limits, and prohibited additives. Where facilities are located near sensitive ecosystems—coral reefs, mangroves, or fisheries—more stringent requirements including diffuser systems and environmental impact assessments are appropriate.

Q: How do water offsets differ from carbon offsets, and when are they appropriate? A: Unlike greenhouse gases, which mix globally in the atmosphere, water is fundamentally local—a cubic meter conserved in one watershed provides no direct benefit to a different watershed. This limits the applicability of offset approaches. Water offsets may be appropriate when: (1) the offset project operates within the same catchment as consumption; (2) the project generates verified, additional water savings or supply; and (3) no alternative exists to reduce direct consumption. Buyers should treat offsets as a last resort after exhausting efficiency measures and alternative sourcing. Verification frameworks like Water Benefit Partners require demonstration of volumetric equivalence and permanence, with registries tracking offset retirement to prevent double-counting.

Q: What due diligence should buyers conduct on desalination technology providers? A: Comprehensive due diligence should examine: (1) Track record—reference facilities of similar scale and application, with performance data and client testimonials; (2) Financial stability—balance sheet strength and parent company backing, particularly important for 20-30 year concession agreements; (3) Technology roadmap—ongoing R&D investment and pathway to next-generation efficiency improvements; (4) Local presence—service infrastructure, spare parts inventory, and emergency response capability within the region; and (5) Sustainability credentials—corporate commitments, third-party certifications, and alignment with buyer ESG requirements. Site visits to reference facilities, interviews with existing clients, and independent technical advisory support are worthwhile investments for major procurements.

Q: How should organizations prepare for CSRD water disclosure requirements? A: Organizations subject to CSRD should begin by mapping water-related dependencies, impacts, risks, and opportunities across their value chain. The ESRS E3 standard requires disclosure of water consumption volumes, intensity metrics, sourcing from stressed areas, and pollution emissions. For desalination specifically, disclosures should address energy sources, brine disposal methods, and alignment with science-based water targets. Preparation steps include: establishing metering infrastructure to generate accurate consumption data; developing water risk assessments at the facility level; setting verified targets through frameworks like the Science Based Targets Network; and engaging supply chain partners on their water practices. Many organizations begin with voluntary CDP Water disclosure to build capabilities before mandatory CSRD reporting.

Sources

• Asian Development Bank. (2024). Asian Water Development Outlook 2024: Strengthening Water Security in Asia and the Pacific. Manila: ADB Publications.

• Global Water Intelligence. (2025). Desalination Markets 2025: Global Forecast and Analysis. Oxford: Media Analytics Ltd.

• International Desalination Association. (2024). IDA Desalination and Water Reuse Handbook: Energy and Sustainability Edition. Topsfield, MA: IDA.

• McKinsey & Company. (2024). Water Risk in Asia-Pacific: Corporate Exposure and Adaptation Pathways. Singapore: McKinsey Global Institute.

• Science Based Targets Network. (2024). Technical Guidance for Setting Science-Based Targets for Water. Version 1.0. Washington, DC: SBTN Secretariat.

• UNEP. (2024). The State of Desalination and Brine Production: A Global Outlook. Nairobi: United Nations Environment Programme.

• World Resources Institute. (2024). Aqueduct 4.0: Updated Global Water Risk Indicators. Washington, DC: WRI Publications.