Saudi Water Authority (SWA) has announced plans to establish a factory in Saudi Arabia to manufacture energy recovery devices used to reduce power consumption at reverse-osmosis desalination plants.

US-based Energy Recovery will operate the facility with a capacity to produce 2,000 devices a year. Production is scheduled to begin in the first quarter of 2027. SWA said the facility will be the first factory outside the US to manufacture the specialised equipment.

Domestic demand in Saudi Arabia is estimated at 1,200 devices a year. About 40% of the factory’s production is expected to be supplied to markets in the GCC, Africa and Asia.

Energy recovery devices improve the efficiency of desalination plants by recovering energy from the reverse-osmosis process, reducing power consumption and operating costs.

SWA said local manufacturing will reduce dependence on imports, shorten supply times and improve the reliability of supply chains serving desalination plants.

The authority estimates the market opportunity for the industry at more than SR547m ($146m). This includes about SR247m ($69.5m) in Saudi Arabia and SR300m ($80m) across the Middle East and North Africa.

The project is expected to contribute about SR137m ($36.5m) to Saudi Arabia’s GDP by 2033. SWA expects localisation within the product’s value chain to exceed 80%.

The project is also intended to support knowledge transfer and develop local capabilities in the manufacture of desalination technologies.

SWA led efforts to establish the project in cooperation with Saudi Arabia’s Ministry of Investment, Ministry of Industry & Mineral Resources and Local Content & Government Procurement Authority.