SWA to build first ERD factory outside US

Logo of Saudi Water Authority (SWA)

The Saudi Water Authority (SWA) announced the localization of energy recovery device (ERD) manufacturing, a strategic desalination technology, by establishing the world's first ERD factory outside the US. Production is scheduled to begin in the first quarter of 2027.

Energy Recovery Inc. will build the plant with an annual capacity of 2,000 units, exceeding Saudi Arabia's estimated annual demand of 1,200 units and achieving local self-sufficiency, while 40% of production will be exported to GCC countries, Africa, and Asia, the Saudi Press Agency (SPA) reported.

ERDs improve desalination efficiency by reducing energy consumption and operating costs. Local manufacturing will cut import reliance, speed up equipment availability, and strengthen supply chain reliability to support uninterrupted water production.

The industry offers a market opportunity of more than SAR 547 million, including SAR 247 million in Saudi Arabia and SAR 300 million across the Middle East and North Africa, supporting long-term production and export growth.

The project is expected to contribute SAR 137 million to GDP by 2033, create more than 50 direct jobs, and achieve a value-chain localization rate exceeding 80%, supporting technology transfer and the development of local desalination expertise.

The initiative will shift the technology from imports to domestic manufacturing and exports, positioning Saudi Arabia as a regional hub for ERD production and enhancing the competitiveness of its water technology sector.

The project was led by SWA in cooperation with the Ministry of Investment, the Ministry of Industry and Mineral Resources, and the Local Content and Government Procurement Authority (LCGPA) to accelerate the factory's establishment and commercial production.