Energy Recovery’s Saudi plant to add $36.5 million to GDP by 2033

Nasdaq-listed Energy Recovery will establish a desalination technology manufacturing facility near Dammam Second Industrial City, with the project expected to contribute $36.5 million to Saudi Arabia’s GDP by 2033.

The facility, the company’s first manufacturing plant outside the US, is expected to create more than 50 direct jobs.

According to the Saudi Water Authority, the plant will produce 2,000 energy recovery devices annually, exceeding the estimated domestic demand of around 1,200 units. Around 40% of production is expected to be exported to Gulf Cooperation Council countries and to markets across Africa and Asia.

Energy Recovery said it will establish the 3,750-square-meter facility through its wholly owned Saudi subsidiary, Energy Recovery Co., with production scheduled to begin in the first quarter of 2027.

The Dammam plant will be the California-based company’s first manufacturing operation in Saudi Arabia and its first facility outside the US to produce its proprietary PX Pressure Exchanger technology.

The project comes as Saudi Arabia seeks to expand private-sector participation in its water infrastructure sector. According to the Saudi Press Agency, projects tendered by the Saudi Water Partnership Co. have attracted $14.9 billion in private investment and secured contracted desalination capacity of more than 10 million cubic meters per day.

Mohammed Al-Shaikh, vice president of strategic partnerships and local content at the Saudi Water Authority, said localizing advanced water technologies is critical to strengthening water security and advancing Vision 2030’s goals.

Energy Recovery said the Saudi facility will complement its California operations while supporting technology transfer and the development of local manufacturing capabilities.

The Saudi Water Authority said the plant will localize production of a critical desalination technology that has until now been manufactured exclusively in the US.

The project is expected to achieve a localization rate of more than 80% across the product’s value chain, positioning Saudi Arabia as a regional manufacturing and export hub for energy recovery devices.

The authority estimates the market opportunity for the technology at more than $145.9 million, including approximately $65.9 million in Saudi Arabia and $80 million across the wider Middle East and North Africa region.

Alex Buehler, interim president and CEO of Energy Recovery, said the Saudi facility will complement the company’s California operations while bringing manufacturing capacity closer to key desalination markets.

Saudi Arabia and other Gulf countries rely heavily on desalination to meet drinking water and industrial needs. Energy Recovery said growing regional demand has increased the need to locate manufacturing capacity closer to customers.

The company has supplied the desalination industry for more than 30 years. According to Energy Recovery, its PX Pressure Exchanger technology is used in facilities producing 43.6 million cubic meters of fresh water each day and can reduce energy consumption in seawater desalination by up to 60%.