Chinese firms form desalination plant joint venture

Water technology firm Beijing Origin Water and Chinese state-owned a water supplier Qingdao Water Group have established the Qingdao Water Origin Science Development joint venture (JV) to build a 100,000 m³/d seawater reverse osmosis plant in the northeastern Chinese province of Qingdao.

The plant will supply industrial water in Qingdao’s Dongjiakou Economic Zone. The JV – in which the state owned company holds 51% – has signed a memorandum of understanding with the economic zone to build the plant which is expected to be online in 2015. This will be the first phase of a project that could expand to 300,000 m³/d.

Energy and environment firm Abengoa in February this year sold its 92.6 % stake in a 100,000 m³/day reverse osmosis desalination plant venture project company to partner in the project, Qingdao Water Group for € 53 million (US$ 71 million).

The venture company was created to manage the design, build own and operate the desalination plant in Qingdao which has been in operation since 2013. The companies said the deal strengthened their relationship for new project development in water.