Components for Singapore’s second desalination plant that will eventually produce over 300,000 cubic meters of water per day will be funded through a USD$14.4 million loan from the Japan Bank for International Cooperation.
Hyflux subsidiary, Hydrochem, was awarded the design, build, own and operation (DBOO) contract back in March 2011.
The loan will be used to purchase reverse osmosis membrane elements manufactured by Toray Industries and high pressure pumps manufactured by Torishima Pump Mfg.
Tuaspring Desalination Plant (see WWi video interview), which is designed to produce 318,500 m3/day of desalinated water, will employ Hyflux’s proprietary ultrafiltration membrane technology for the pre-treatment process and a double pass reverse osmosis process to produce potable water.
Singapore’s first desalination plant, SingSpring, was also developed by Hyflux and produces 136,000 cubic metres of potable water per day. This helps to provide 10% of the nation’s total water demand.
The loan amount is co-financed by Mizuho Corporate Bank, while Nippon Export and Investment Insurance (NEXI) will provide the buyer’s credit insurance for the co-financed portion.
The loan is the first of its kind extended by JBIC to Hyflux Group following their memorandum of understanding on global collaboration on water projects signed in August 2009. It is also the first time that a buyer’s credit loan has been secured for components for a Hyflux project.
Olivia Lum, executive chairman and Group CEO of Hyflux, said: “With this first buyer’s credit loan secured by Hyflux Group, we believe there will be more opportunities for Hyflux and JBIC to collaborate on global water projects.”
Singapore is trialing new desalination technologies and techniques in a bid to reduce current energy requirements for membrane desalination from 3.5kWh to 0.8kWh per cubic metre (see WWi article).