20% of Saudi Arabia’s oil and gas production is devoted to supporting co-generation desalination plants
Saudi Arabia stands as the undisputed global leader in industrial-scale desalination—a paradoxical triumph in a water-starved landscape powered predominantly by its most abundant resource: oil. The same black gold that fuels its economy also sustains its fresh water supply through energy-intensive desalination—a defining success born of necessity.
Saudi Arabia relies heavily on thermal and co-generation desalination, fueled by fossil energy. Notably, the Kingdom consumes approximately 300,000 barrels of oil per day solely for its desalination infrastructure. In terms of electricity usage, desalination accounted for around 6% of the nation’s total consumption in 2020. More broadly, it’s estimated that 20% of Saudi Arabia’s oil and gas production is devoted to supporting co-generation desalination plants, with projections indicating that by 2030, half of its domestic oil and gas output may be allocated solely for water supply.
For instance, Riyadh located in the center of the country is supplied by desalinated water pumped from the Arabian Gulf over a distance of 467 km. It is estimated in this paper that almost 20% of oil domestic production is used for desalination plants in Saudi Arabia.
The government projected that Saudi Arabia needs to spend over 213 USD Billion over the next decade to meet the demand in both water and electricity.
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Renewables on the Rise
Despite the oil-driven legacy, the Kingdom is strategically shifting toward renewables. By the end of 2023, Saudi Arabia had installed approximately 2.8 GW of renewable capacity (primarily solar), with 5 GW planned under its National Renewable Energy Program.
The government’s ambitious target: 50% of electricity generation capacity from renewables by 2030. As of mid-2024, over 21 GW of projects were in the pipeline, with 9.7 GW slated for completion by 2026. Within the desalination sector, the Saudi Water Authority now sources 20 % of the energy for new plants from renewable sources, while aiming to shrink carbon emissions from 60 million to 37 million tonnes by 2025, partly through minimizing liquid fuel use.
Yet desalination is not without its drawbacks. In a Green Prophet article, Yale’s Menachem Elimelech cautioned that “even the most advanced desalination technologies… still use three times as much energy as conventional water treatment.” Thermal methods, common in Gulf states like Saudi Arabia, “use a lot of energy.” This echoes broader concerns that desalination should remain a last-resort measure, pursued only after emphasising conservation, reuse, and efficiency.
Top 5 Desalination Players
Here are five leading companies shaping the global desalination industry, with operations or influence in Saudi Arabia—and one prominently Israeli:
The Saudi Water Authority (formerly SWCC) is the state enterprise operating over 30 plants with a combined capacity of ~7.5 million m³/day. It’s the world’s largest fully owned desal producer.
ACWA Power is a Saudi-based developer and operator of power and desalination facilities, with a portfolio yielding 9.5 million m³/day across 14 countries and USD 107.5 billion in investment.
Veolia is a global leader profiting from the Gulf’s surge in desal demand. Veolia brings massive energy-efficiency innovations, delivering up to 85% gains and 90% cost reductions in desal water production.
Acciona is a Spanish company with a robust water division; its 2024 revenues hit €1.2 billion, with desal projects spanning from Australia to Qatar.
IDE Technologies is an Israeli pioneer in desalination since 1965, IDE has built dozens of plants globally. Notably, its Sorek plant in Israel is one of the world’s largest RO facilities. Inclusion of IDE addresses the requirement for an Israeli company. Israeli stocks are currently on the rise. IDE is up for public bidding.
The Future of Saudi Desalination
Saudi Arabia’s approach illustrates a pragmatic melding of resources and strategy: hydrocarbon wealth enabled its desalination network, securing water independence for decades. Renewables are now integral to its energy transition and desalination infrastructure.
Yet, energy intensity remains a critical limitation, prompting experts to urge diversification and conservation. Leading desalination players—local and global—continue to drive innovation and scale, with some like IDE transcending geopolitical boundaries through technical prowess.
Saudi Arabia’s success in desalination is undeniable—fueled by oil, powered by innovation, and now pivoting toward renewables. Yet voices like Gidon Bromberg and Menachem Elimelech’s highlighting in Green Prophet) remind us that desalination is resource-intensive and should not eclipse broader water-management strategies. The Kingdom’s trajectory, backed by heavyweights like SWA, ACWA, Veolia, Acciona, and IDE, may well serve as both model and cautionary tale for water-scarce regions worldwide.
Get a backgrounder on water issues from the last year in the MENA Middle East region:
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