Its second Singapore plant will sell the water at 45 cents per cubic m when ready in 2013
Lynn Kan Business Times 6 Jul 11;
SINGAPORE'S second and larger desalination plant built by Hyflux will produce the world's cheapest desalinated water at 45 cents per cubic metre when it is completed in 2013.
This is made possible because of improvements in membrane technology, the larger scale of the Tuaspring Desalination Plant compared to its predecessor and the integration of the 400-megawatt power plant that is on site.
Group president and CEO of Hyflux Olivia Lum said the group will aim to incorporate technology which will 'revolutionise' the energy efficiency of its desalination process, to further lower water tariffs.
Currently, the research team at Hyflux is working tirelessly to hit upon 'The Solution' that will bring energy costs down at its plants, said Ms Lum.
Yet, Ms Lum is not averse to sourcing such technology from other companies from different parts of the world.
'In fact, nobody has a monopoly of talent. We believe that reaching out to international technology platform will only assist us in advancing our focus in bringing down water costs,' said Ms Lum.
Ms Lum's comments came after the groundbreaking ceremony of the Tuaspring Desalination Plant was concluded yesterday at the Singapore International Water Week.
On Monday, Hyflux announced that it had secured a $150 million financial package for the desalination plant, and it is 'on track' to securing financing for the power plant.
Ms Lum said she was confident that financing for the $890 million Tuaspring Desalination Plant and its ancillary power plant will be secured on schedule in four months.
Hyflux had raised $400 million through Class A Preference Shares in April. Most of this will fund the Tuaspring project, said Ms Lum.
The project was announced in April, and Hyflux will design, build, own, and operate the plant.
Construction will begin at Tuas Ave 3 in the fourth quarter of 2011.
Hyflux's counters closed up three cents yesterday at $2.03.
Hyflux secures funds of S$150m for Tuaspring desalination plant
Travis Teo Channel NewsAsia 5 Jul 11;
SINGAPORE: Home-grown water treatment firm Hyflux has secured funds of S$150 million to build Singapore's largest desalination plant.
The Tuaspring desalination plant is part of a project expected to cost S$890 million, which the firm said it is "on track" to secure funds for this second tranche.
But it didn't elaborate on its potential size.
It added that the S$400 million raised during a preference shares offer in April will also contribute largely to the project.
Hyflux said desalination business contributes about 90 per cent of its revenue.
The firm recorded a total revenue of S$570 million in 2010.
Olivia Lum, founder & chief executive of Hyflux said: "Our research team is very busy looking for the solution to bring desalinated water to be the cheapest water.
"As cheap as, maybe, ordinary river water treatment, and that will be our dream.
"We want to bring sea water desalination to the level where everybody can afford and when that time comes, this sea water desalination will not only be available to rich countries or nations."
Hyflux said the plant is expected to offer the lowest tariffs of around S$0.55 per cubic metre on the first year when completed.
It added that this is the bottom of a global range of between S$0.55 to S$1.23 per cubic metre.
Costs are lower due to an on-site power plant that will supply electricity to the desalination plant.
Dr Vivian Balakrishnan, Environment and Water Resources Minister, said: "The Tuaspring desalination plant showcases our commitment to leverage on innovation in order to address our long term needs.
"Hyflux, which has been PUB private sector partner for this project, proposed an innovative solution in which it has coupled desalination with on-site power generation.
"I couldn't resist noticing when Olivia proudly proclaimed the lowest tariffs in the world."
Construction for the Tuaspring project, built under a Design, Build, Own and Operate (DBOO) scheme, is expected to start in the fourth quarter of 2011.
When completed in 2013, it will add 318,500 cubic metres of desalinated seawater a day to the national water supply.
That would more than triple PUB's total water desalination capacity to 455,000 cubic metres.
In total, Dr Balakrishnan said desalinated water will make up 30 per cent of water needs by 2060, up from the current 10 per cent.
- CNA/ck
