Thursday, March 22, 2012

Hyflux's India unit to co-develop $760m desalination in Gujarat

Hyflux says its unit Hyflux Utility (India), together with its Japanese partners, Hitachi and Itochu Corporation, has signed a co-developer agreement for the development of a seawater desalination plant with a capacity of 336,000 cubic metres per day to be located in the Dahej Special Economic Zone in the state of Gujarat, India.

The consortium, through a special purpose company known as Swarnim DahejSpring Desalination Pvt Ltd, signed the agreement with Dahej SEZ Limited (DSL) to develop the Project on a design, build, own and operate basis and to supply the desalinated water to DSL. The shareholding structure of DahejSpring will be finalized at a later stage.

DahejSpring will be allotted land by DSL in the Dahej SEZ to develop and operate the project for a period of 30 years. The total cost of the project is currently estimated to be in the region of US$600 million ($760 million).

Hitachi will be the lead engineering, procurement and construction (EPC) contractor and will collaborate with Hyflux in respect of the EPC works and the O&M (operations and maintenance) works for the project.

The project will employ ultrafiltration pre-treatment and reverse osmosis membrane technologies to treat the seawater into water suitable for industrial use. The Project will be Asia’s largest seawater reverse osmosis desalination plant to date.

Olivia Lum, Executive Chairman & Group CEO of Hyflux, says: “We are pleased to partner with Hitachi and Itochu for this landmark desalination project. This is Hyflux’s first largescale water project in India. We look forward to producing clean water to serve the Dahej SEZ.”

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