South Korea’s Doosan Enerbility won $640 million desalination plant project in Saudi Arabia.

Doosan Enerbility, formerly Doosan Heavy Industries & Construction, announced Wednesday that it inked an engineering, procurement, and construction contract with Shuaibah Three Water Desalination Company for Saudi Arabia’s Shuaibah 3 Independent Water Project.

Shuaibah Three Water Desalination Company is a special purpose vehicle between Saudi utility developer ACWA Power and Water & Electricity Holding Company (Badeel), which is owned by Saudi Arabia’s PIF sovereign wealth fund. The Korean engineering firm previously carried out two desalination projects for ACWA Power, in 2006 and 2007.

The newly signed project, worth $639.96 million, is part of the Shuaibah 3 Independent Water and Power Project, which is to establish the world’s largest reverse osmosis desalination facility in Shuaibah, located 110 kilometers south of Jeddah, the second largest city in Saudi Arabia.

Under the EPC contract, the Korean company will build a desalination plant capable of producing 600,000 cubic meters of drinkable water per day and a 60-megawatt solar power plant, as well as provide machines for the construction works.

The project will run from September 2022 to May 2025.

Once completed, the desalination plant will supply potable water to meet the daily water demand of 2 million people. The solar farm will provide electric power to the desalination plant.

Previously in January 2021, the Korean engineering firm in a consortium with French energy company Engie, secured a contract worth 780 billion won ($708 million at that time) to build the Yanbu-4 seawater desalination plant in Alrayyis, 260 kilometers north of Jeddah city.

On Wednesday afternoon, shares of Doosan Enerbility rose 1.08 percent to trade at 18,650 won ($14.24), in Seoul.

By Pulse

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