hi y, whilst I have read the cost analysis, this is only a...

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29/03/19

19:22

Post #: 37933257
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Originally posted by ywtoh: ↑

And why is this so?

Desalination in Egypt and elsewhere is having a rebound after a decade of recession because the costs of membranes are coming down. I made mention in my post here Post #:37892039. See the Bloomberg article linked. I reproduce the relevant part: "Costs have tumbled by more than half over the past 30 years thanks to improvements in technology and energy efficiency. The cost of producing 1 cubic meter of treated water currently ranges from 50 cents to 90 cents, said Miguel Angel Sanz, president of the IDA."The cost of membranes (vs thermal desalination) has plummeted. What was once beyond the reach in the early decades is now made affordable to third world countries like of Egypt because of higher PPP (purchasing power parity). I posted that artcle before in HC but for the life of me, I cannot locate it.

This presentation at Singapore's SIWW (https://www.siww.com.sg/docs/default-source/default-document-library/mr-miguel-sanz.pdf?sfvrsn=2) that I attended in 2018 will explain further. See chart 4 & 5: the installed capacity will double from 100m m3/day to above 200m m3/day in 12 years!! Please have a read for those of us more fundamentally inclined.

For the sake of brevity, my point is this, if it's not made clear enough in the last 12 mths on this thread: countries like Egypt, Phil, Vietnam, China etc are now able to afford desalination, especially for the middle market (up to $150m contract size). That is the market that FLC is focused on.

Apologies to those oldies, but it's worth mentioning again for the newbies in our midst. Happy weekend reading.

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hi y, whilst I have read the cost analysis, this is only a benefit for Egypt. What is driving urgency for desalination in Egypt is fear. See article link to an article on 21/3/2019
http://www.arabnews.com/node/1470516/middle-east
Basically, the Ethiopian dam, due to be completed in 2022 will impact downstream water supplies from the Nile. ATM Egypt relies on the Nile, hence the creation of cities in coastal area for desalination solutions.

FLC Price at posting: 50.5¢ Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

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