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Find a contact near you by visiting www.gewater.com and clicking on “Contact Us.” Copyright © 2014 General Electric All rights reserved. No parts of this publication may be reproduced or transmitted in any form or by any means, electronical or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from GE. ADDRESSING WATER SCARCITY IN SAUDI ARABIA: POLICY OPTIONS FOR CONTINUED SUCCESS BY COLIN ENSSLE AND JON FREEDMAN

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Find a contact near you by visitingwww.gewater.com and clicking on “Contact Us.”

Copyright © 2014 General Electric

All rights reserved. No parts of this publication may be reproduced or transmitted in any form or by any means, electronical or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from GE.

ADDRESSINGWATER SCARCITYIN SAUDI ARABIA:POLICY OPTIONS FORCONTINUED SUCCESSBY COLIN ENSSLEAND JON FREEDMAN

1

TABLE OF CONTENTS

TABLE OF CONTENTS

Introduction 3

Water Reuse in the Kingdom of Saudi Arabia 4

Water Reuse Policy and Regulations in the Kingdom of Saudi Arabia 7

A Range of Technology Options 10

Case Studies Case Study #1: Water Reuse in the Canadian Oil Sands 13 Case Study #2: Successful MBR implementation promotes reuse in an Oil Refinery in Bahrain 14

Conclusion 16

Notes 17

2

TABLE OF CONTENTS

ZeeWeed Ultrafiltration membrane technology will help improve wastewater treatment at the Qinghe Waste Water Plant in Beijing.

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ADDRESSING WATER SCARCITY IN SAUDI ARABIA: POLICY OPTIONS FOR CONTINUED SUCCESS

INTRODUCTIONThe Kingdom of Saudi Arabia is among the most water-scarce countries in the world.1 One strategy Saudi Arabia is using to solve this challenge is increased water reuse; and in fact the country currently ranks among the top ten countries globally in terms of water reuse.2 Looking forward, the country has aggressive long-term goals of increasing water reuse to more than 65 percent by 2020 and more than 90 percent by 2040, all by transforming more of its existing and planned wastewater treatment assets into source water suppliers across all sectors.3,4,5,6

While governments in water-scarce regions like Saudi Arabia continue to look for ways to expand water recycling and reuse, they may have dif-ficulty finding information on available policy options. This white paper attempts to highlight a broad menu of existing water reuse policies. We first review the current status of water reuse and related policies in Saudi Arabia. Next is a short discussion of the following four major water reuse policy options available to governments:

1. Education and outreach2. Removing barriers3. Incentives4. Mandates and regulation

We then briefly touch on water reuse technologies. Finally, we highlight two recent examples in which governments have developed regulations resulting in increased water reuse in the oil and gas sector, which we believe will be of interest to Saudi Arabia.

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ADDRESSING WATER SCARCITY IN SAUDI ARABIA: POLICY OPTIONS FOR CONTINUED SUCCESS

WATER REUSE IN THE KINGDOM OF SAUDI ARABIAIn its commitment to solving its water challenges (and expanding water reuse), Saudi Arabia recently launched a National Water Strategy.7 Fur-ther, more than $66 billion (B) in long-term capital investments have been committed to water and sanitation projects over the next 10 years.8 The more than $10B dedicated specifically to wastewater capital and ope- rational projects between 2012 and 2015 will balloon to over $35B by 2020.9 Additionally, a pilot solar desalination plant became operational at the close of 2013, with a second plant already planned that will be 10 times its size, producing 80 million gallons per day (MGD).10 And Jed-dah, the second largest city in Saudi Arabia, rocketed from 22 percent municipal sewerage coverage in 2009 to 72 percent today.11

Specific to water reuse, Saudi Arabia is aggressively targeting 100 per-cent reclamation (reuse) of wastewater from cities with 5,000 inhabi-tants or greater by 2025.12 Overall water reuse from treated wastewater is currently estimated at an impressive 30–40 percent and continues to grow, with at least five major projects planned for the near future.13 Furthermore, projections indicate that Saudi Arabia has the potential to produce more than seven times its current water reuse volume of 241 million cubic meters per year (MM m³/yr).14

This leadership by Saudi Arabia comes in the face of significant water supply and demand challenges which include water scarcity; dwindling surface water and groundwater supplies; infrastructure build-out; and tariff and demand management.15,16,17,18,19,20 Nevertheless, with over 250 water projects pending across the Kingdom in 2013,21 Saudi Arabia is acting on its water challenges and has bold goals, especially regarding water reuse,22 as highlighted in Table 1 below.

Global Water Intelligence (GWI) expects the water reuse market in Saudi Arabia over the 2010–2016 period to be worth approximately $3.3B (2012 US), making the Kingdom the third-largest water reuse market in the world.25 Table 2 below illustrates that, among the largest sectors, the agriculture and landscaping sectors are projected to be the largest con-tributors to reuse by 2035, while industrial sector water reuse is foreseen to grow at the fastest pace.26

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ADDRESSING WATER SCARCITY IN SAUDI ARABIA: POLICY OPTIONS FOR CONTINUED SUCCESS

Table 2. Saudi Arabia water reuse by sector, 2012–35 27,28

Sector (1,000 m³/d) 2012 2035 % of total (‘35)

CAGR*‘12–’35

Industry 233 767 13.1% 5.3%

Landscaping 650 1,533 26.3% 3.8%

Recreation 0 167 2.9% 38.1%29

Agriculture 1,467 3,350 57.4% 3.7%

Aquifer recharge 17 17 0.3% 0.0%

TOTAL 2,367 5,834 100.0% 4.0%

1,000 m3/d = thousands of cubic meters per day *CAGR = compound annual growth rate

km3 = cubic kilometers l/d = liters per day

Table 1. Saudi Arabia’s national water strategy goals, 2013 23,24

Indicator Unit 2010baseline

2015target

2020target

2030target

2040target

Yearly use of non-renewable water sources km3 14.5 10 8 5 5

Implementation of regional water plans % n/a 50 100 100 100

Use of renewable water resources % n/a 60 70 80 90

Sectoral metering coverage % n/a 40 60 80 95

Reuse of treated municipal wastewater % 30 60 80 100 100

Reuse of industrial wastewater % 10 40 65 80 90

Targeted per capita consumption l/d 238 200 180 170 170

Municipal water supply losses % 30 20 12 5 5

Urban households connected to sewer network % 48 50 65 80 95

Muni water treated to tertiary standards or + % 35 50 60 70 100

Source: Global Water Intelligence (GWI), Al-Saud (2013).

Source: Global Water Intelligence (GWI), GE analysis.

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TABLE OF CONTENTS

Thorton ZeeWeed system

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ADDRESSING WATER SCARCITY IN SAUDI ARABIA: POLICY OPTIONS FOR CONTINUED SUCCESS

WATER REUSE POLICY AND REGULATIONS IN THE KINGDOM OF SAUDI ARABIAPrimary responsibility for regulating wastewater – and thereby water reuse – is split among the Ministry of Water & Electricity (MOWE), the Presidency of Meteorology & Environment (PME), and the Ministry of Agri-culture (MOA).30 The National Water Company (NWC), however, is respon-sible for implementing projects. Saudi Arabia’s first regulation specific to water reuse was Royal Decree No. M/6 1421 H, set forth in May 2000.31

It established secondary and tertiary treatment requirements, but did not list water quality standards.32,33 In 2001, Rules of Implementation (No. 1422 H, 2001) outlined water quality standards for both waste- water effluent discharge and reuse, as well as pre-treatment standards for industrial effluent.34,35 Ultimately, the MOWE in 200636 published a booklet in which standards for safe reuse practices in agriculture were formalized, a milestone in Saudi Arabia’s reuse policies.37 Additional landmarks in the Kingdom’s water reuse policy to date include the Royal Commission Environmental Regulations (RCER 2010) and the draft Saudi Water Act (2010).38 Figure 1 shows major developments in the Kingdom’s water and water reuse policy over the past 35 years.

Figure 1. Historical landmarks and future goals of Saudi Arabia’s water reuse policy 39

Fatwa Issued byCouncil of LeadingIslamic Scholars

Treated Wastewaterand its Reuse Law

Began Issuing Rules of Implementation

Using Treated Water for Irrigation; Controls-Conditions-Offenses and Penalties

Draft Saudi Water Act Prepared

Goal forComplete Reuse of Treated Wastewater

General Environmental Regulation and Rules for Implementation

Rules of Implementation for Treated Wastewater and Its Reuse (valid for 5 years)

Formation of the National Water Company

Draft Implementing Regulations: Treated Wastewater and Its Reuse Law PreparedNational Water Plan

1978 1985 20102000 20252001 2002 2005 2006 2008

Source: King Abdullah University for Science & Technology (KAUST), Industry Collaboration Program (KICP).

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ADDRESSING WATER SCARCITY IN SAUDI ARABIA: POLICY OPTIONS FOR CONTINUED SUCCESS

In terms of industrial reuse, overarching regulations are not set forth by Saudi Arabia at the country level.40 However, enforcement of and com-pliance with industrial wastewater discharge standards for wastewater treatment plants under 1422 H are through the MOWE and MOA, which affects reuse. Yet in practice, two factors indicate a low compliance rate with these standards:41 first, monitoring and sampling criteria in 1422 H are not described in detail; and second, fines for industrial discharges are low.42 This, coupled with a lack of broad federal government incentives for industries to reuse wastewater, creates a challenging environment for industrial water reuse projects to take off outside specific regions.

Individual cities, however, such as the industrial cities of Jubail and Yanbu, have taken the initiative to create strict local water reuse stan-dards.43 Most recently, in 2010 the Royal Commission for Jubail and Yanbu (RCJY) updated the Royal Commission Environmental Regulation (RCER), which strictly regulates the (re-)use and discharge of industrial water and wastewater in its jurisdiction.44 In the future, Jubail and Yanbu, as well as Ras az Zawr and Ras Al-Khair, are expected to be joined by other industrial cities under the RCER.

In the private sector, companies like Saudi ARAMCO, the largest oil and natural gas company in Saudi Arabia, are becoming leaders in esta- blishing public water safety standards for water reuse practices within their facilities.45 ARAMCO has established engineering standards in line with California’s strict Title 22 reuse standards,46 and targets 90 percent reuse of its sanitary wastewater.47

Currently, Saudi Arabia is executing its 9th Development Plan (2010–2014), a long-term strategy for achieving sustained development in the Kingdom.48,49 The Plan lists increasing treated wastewater reuse to 50 percent as one of its main long-term goals. With the 8th Develop-ment Plan as its foundation (during which wastewater treatment plants increased reclaimed water use by an annual average growth rate of over 9 percent from 2004 to 2008),50 water reuse will increase greatly during the 9th Development Plan. Going forward, Saudi Arabia has ambitious policy goals it wants to reach by 2015, including:

1. Officially adopting its National Water Strategy2. Establishing a Supreme Council for Water Affairs3. Passing a new water law4. Establishing an independent regulator for water resources and

water services5. Creating a water management department within the MOWE51

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ADDRESSING WATER SCARCITY IN SAUDI ARABIA: POLICY OPTIONS FOR CONTINUED SUCCESS

As Saudi Arabia pursues these comprehensive policies, water reuse will remain a key element. A representative menu of additional or expanded water reuse policy options are listed below in Figure 2 and discussed in detail in GE’s white paper, “Addressing Water Scarcity Through Recy-cling and Reuse: A Menu for Policymakers” (https://knowledgecentral.gewater.com/kcpguest/documents/Technical Papers_Cust/Americas/English/TP1161EN.pdf).

EDUCATION AND OUTREACH• Recognition awards and certification programs• Information dissemination and educational

outreach efforts• Reporting of water consumption, discharge,

and reuse data

This menu provides a valuable starting point for Saudi Arabia to evaluate the appropriate mix of additional policies that will best fit their needs.

INCENTIVES• Direct subsidies• Reductions in payments to the government• Payments for reintroduction of recovered water• Pricing mechanisms• Regulatory relief for recycled water users• Government procurement of water recycling/

reuse equipment• Structuring of water rights to reduce

the use of potable water

REMOVING BARRIERS• Modifying local regulations to require

that all water meet potable standards• Revising plumbing codes to allow dual piping• Alleviating stringent permitting and inspection

requirements for recycled water

MANDATES AND REGULATION• Requiring utilities to develop plans

for recycled water• Restricting potable water to human

or food-related uses

Figure 2. Menu of water reuse policy options

Source: General Electric.

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ADDRESSING WATER SCARCITY IN SAUDI ARABIA: POLICY OPTIONS FOR CONTINUED SUCCESS

A RANGE OF TECHNOLOGY OPTIONSWater reuse systems require treatment technologies. Together with the summary of policy options above, GE offers the following brief menu of water treatment technologies that can be deployed in water reuse pro-jects. This menu is not exclusive, and is meant to provide a starting point for Saudi Arabia to evaluate water reuse technologies that best fit its needs. In addition, Figures 3 and 4 below on the following page illustrate how select technologies may be deployed as a function of water reco-very needs and water quality.

E-CELL EDI St ock

Figure 3. Reuse technology spectrum: GE water reuse technologies as a function of the percentage of reuse/recycle and the level of project complexity

% Reuse/recycle

Media Filtration

Depth Filtration

Micro Filtration

Ultra Filtration

Reverse Osmosis

Electro-Deionization

Thermal/ZLD

98% +Recycle

HIG

HLO

WC

ompl

exit

y

LOW HIGH

Z-BO X

Source: General Electric.

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ADDRESSING WATER SCARCITY IN SAUDI ARABIA: POLICY OPTIONS FOR CONTINUED SUCCESS

Figure 4. A broad portfolio of GE water reuse technologies

70–85% RECOVERY Membrane-based Systems & Advanced Chemistries

E-CELL EDI St ock

98% RECOVERY Thermal Evaporation,Crystallization, Biological Systems

BENEFICIAL USE Wastewater Recovery Systems

Source: General Electric.

Electro-Deionization

ZeeWeed Ultrafiltration

Water Reuse Chemistries

Micro Filtration

Reverse Osmosis

Crystallization

Water Reuse and Beneficial Use Byproducts (e.g., sodium chloride)

Bio-polishing

Thermal/ZLD

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TABLE OF CONTENTS

Membrane-based water reclamation—Sulaibiya, Kuwait City. The Sulaibiya facility is the world’s largest membrane-based water reclamation facility.

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ADDRESSING WATER SCARCITY IN SAUDI ARABIA: POLICY OPTIONS FOR CONTINUED SUCCESS

WATER REUSE POLICY CASE STUDIESIn light of the current situation in Saudi Arabia, we believe the following two examples of reuse policies will prove instructive.

Case Study #1: Water Reuse in the Canadian Oil Sands

The oil sands in Alberta, Canada are an immense resource, and in the coming decades will place Canada among the top countries in terms of world oil reserves.52 Seven percent of Alberta’s surface and ground- water allocations are used for oil sands mining and in-situ extraction53,54 —thus water reuse is critical. And in part as a result of collaborative work between the government and industry, produced water recycling rates from January 2012 to April 2013 averaged 92 percent for cyclic steam stimulation (CSS) and 90 percent for steam-assisted gravity drainage (SAGD) operations.55

The Alberta Energy Regulator (AER)56 oversees water reuse in the oil and gas sector and issues directives that companies and permit holders under AER jurisdiction must “obey.”57 Directives 74 and 81 provide spe-cific guidance in water management for oil sands operations: Directive 74 for surface mining and Directive 81 for in-situ recovery.

Directive 74, in effect since February 3, 2009, specifies performance cri-teria for the reduction of fluid tailings and the formation of trafficable deposits associated with mineable oil sands.58 In essence, Directive 74 prevents existing tailings ponds from growing in size; requires accele-rated reclamation; and severely limits the building of new ponds.59, 60 The main impetus for this Directive came from increasing environmental awareness among the public.61 The specific technology to be employed is at the discretion of the companies.

Alberta in-situ oil sands water use and recycling has been regulated since 1989.62 Directive 81, in effect since November 21, 2012, sets water disposal limits and includes detailed requirements for reporting injection facility water streams to PETRINEX (Canada’s Petroleum Information Network.)63 This ensures that AER facility water balance requirements are met. In addition to limiting disposal, the directive provides formulas that are used for monitoring and comparing thermal operations. In essence, the Directive’s water disposal limits drive constant improvement in water recycling technologies. For example, the Directive incentivizes

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ADDRESSING WATER SCARCITY IN SAUDI ARABIA: POLICY OPTIONS FOR CONTINUED SUCCESS

new technologies by removing water disposal limits for small thermal pilot or experimental systems. It also acknowledges that as technologies and the industry evolve, the Directive will adjust its requirements.64,65

Directive 81 illustrates a cooperative relationship between regulators, industry, technology providers, and other stakeholders. For instance, as a technology provider, GE spent almost four years working with industry to develop a new SAGD evaporator that was more economical, envi-ronmentally sound, and aligned to regulations.66 Or take Alberta Inno-vates, which, as a government-funded research center, collaborates with industry to find innovative ways to meet water recycling goals and requirements.67

Case Study #2: Successful MBR implementation promotes reuse in an Oil Refinery

The Bahrain Petroleum Company (BAPCO) Sitra refinery, located near Bahrain’s capital, Manama, is among the largest refineries in the Mid-dle East, processing in excess of 250,000 barrels per day. Following its commitment to environmental protection, BAPCO decided to upgrade its existing wastewater treatment plant to improve the quality of its effluent and comply with stricter requirements using the best available technology. Membrane bioreactor (MBR) was the technology chosen for this project that treats 24,000 cubic meters per day of the refinery wastewater.

Prior to deciding on the technology, BAPCO conducted bench scale test-ing that gave a positive indication that the wastewater was biologically treatable. With this affirmation, pilot scale testing was conducted on site in order to increase the level of confidence and provide further insight into the solution. It showed that MBR was the ideal technology for BAP-CO’s highly saline wastewater that exhibited poor biomass flocculation and low filterability. The installed full size MBR consists of a four-stage biological treatment system followed by four membrane ultrafiltration (UF) trains, each with ten ZeeWeed* ZW 500d cassettes supplied by GE Water & Process Technologies. During the performance test, results showed that the UF system was able not only to consistently meet the required treatment capacities, but also the required effluent parameters at all times. In fact, the effluent quality was significantly better than the guaranteed values.

Following the successful completion of the performance test, the UF sys-tem was put in operation and continued to consistently meet the treat-ment capacity on a daily basis as well as all effluent quality parameters

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ADDRESSING WATER SCARCITY IN SAUDI ARABIA: POLICY OPTIONS FOR CONTINUED SUCCESS

including total suspended solids and turbidity, thus setting the stage for water reuse and increased sustainability in the refinery.

The treatment goals at the Sitra refinery are driven by strict discharge regulations set by the Bahrain Supreme Council for the Environment. The aim of the Council, established in late 2012, is to protect and develop the sustainability of Bahrain’s environmental resources through practi-cal implementation of Bahrain’s environmental laws. It extends cover-age to the water and wastewater sector through its Water Resources Council arm.

In the case of the BAPCO refinery, meeting the very stringent nitrogen and phosphorous wastewater discharge limits was especially challeng-ing, along with addressing organic carbon and the biological treatment complications resulting from elevated temperatures. The latter was addressed by means of introducing a double stage cooling system to bring down the wastewater temperature from 48°C to 35°C. There was also the issue of spent caustic that was successfully addressed to promote reuse as a source of nutrients for the biomass. Through the implementation of an integrated refinery wastewater treatment sys-tem, BAPCO was able to reduce its intake of brackish water and meet its cooling water needs through an innovative water reuse approach. This also enabled reduction in volumes discharged to the sea, thus comply-ing also with the environmental regulations as specified by the Bahrain Government. In recognition of the treatment put in place by the BAPCO refinery and its commitment to water sustainability in industry, the proj-ect was awarded a Distinction Award at the GWI Global Water Awards event in Paris, France in 2014.

A set of Zeeweed 500d modules being installed at the Bahrain Petroleum Company Sitra Refinery

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ADDRESSING WATER SCARCITY IN SAUDI ARABIA: POLICY OPTIONS FOR CONTINUED SUCCESS

CONCLUSIONThe Kingdom of Saudi Arabia clearly has a promising future in water reuse. This paper has reviewed current reuse policies and practices in the Kingdom, and highlighted two recent examples of other governments that have successfully promoted reuse via policy. GE would welcome the opportunity to share further insights on global water reuse policies.

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ADDRESSING WATER SCARCITY IN SAUDI ARABIA: POLICY OPTIONS FOR CONTINUED SUCCESS

1. Sakhel, S. R. et al. “Virtual industrial water usage and wastewater generation in the Middle East/North African region.” Hydrol. Earth Syst. Sci. Discuss., 10, 999–1039, 2013. Link here, last accessed December 2013.

2. A country’s rank in terms of water reuse depends on the metric being used, e.g., reuse of treated wastewater, reuse of treated wastewater per capita, etc. This paper uses 2008 and 2011 data from the following sources: Jiménez, B. and Asano, T., eds. Water Reuse: An International Survey of Current Practice, Issues and Needs. IWA Publishing, 2008. Abdel-Dayem, S. et al. (2008). Water reuse in the Arab World: from Principle to Practice: Voices from the Field. Summary of Proceedings- Expert Consultation: Wastewater Management in the Arab World, Dubai, UAE. May 2011. Link here, last accessed December 2013.

3. Chowdhury, S. and l-Zahrani, M. “Characterizing water resources and trends of sector wise water consumptions in Saudi Arabia.” Journal of King Saud University - Engineering Sciences. In Press, Corrected Proof, Available online 15 November 2013.

4. “Saudi Arabia Water Report Q4 2013.” Business Monitor International. August 2013.

5. Scotney, T. Global Water Market 2014 (Saudi Arabia). Global Water Intelligence (GWI), Media Analytics Ltd., April 2013. Also see: KAUST, 2010-11, cited below.

6. Al-Saud, M. B. I. “National Water Strategy: The Roadmap for Sustainability, Efficiency, and Security of Water Future [sic] in the K. S. A.” Water Arabia 2013, February 4-6, 2013. Link here, last accessed December 2013.

7. See endnote 5.

8. Saudi Arabia Water Report Q4 2013. Abstract. Business Monitor International, MarketResearch.com. September 18, 2013. Link here, last accessed December 2013.

9. Ballantyne, B. “Wastewater to enjoy continued investment.” Middle East Economic Digest (MEED). Vol. 56, Issue 47, November 23, 2012. Link here, last accessed December 2013.

10. “Construction begins on solar desal pilot.” Water Desalination Report. GWI. Vol. 49, Issue 41, Oct. 24, 2013. Link here, last accessed December 2013.

11. See endnote 9.

12. King Abdullah University for Science & Technology (KAUST), Industry Collaboration Program (KICP). Promoting Wastewater Reclamation and Reuse in the Kingdom of Saudi Arabia: Technology Trends, Innovation Needs, and Business Opportunities. 2010-2011. Link here, last accessed December 2013.

13. Estimated from: Abdel-Dayem, S. et al. (2011), see endnote 2. See also rough average from Global Water Intelligence’s (GWI’s) Global Water Market 2014 (Saudi Arabia), cited in endnote 5. Reference to five projects from GE commercial team active in Saudi Arabia.

14. See endnote 12.

15. See endnote 3.

16. Food and Agriculture Organization (FAO) of the United Nations. AQUASTAT global water information system. Link here, last accessed December 2013. Currently, surface water and groundwater withdrawal are 943 percent of its total renewable water resources.

17. Non-renewable groundwater aquifers supply over 80% of Saudi Arabia’s water supply, which, given current abstraction rates, could go dry within 15-25 years. (See: Kajenthira, A. et al. “The Case for Cross-Sectoral Water Reuse in Saudi Arabia: Bringing Energy into the Water Equation.” Dubai Initiative Policy Brief. Cambridge, Mass.: Energy Technology Innovation Program, Belfer Center for Science and International Affairs, Harvard Kennedy School, Harvard University, June 2011. Link here, last accessed December 2013.)

18. Dziuban, M. “Scarcity and strategy in the GCC.” Center for Strategic & International Studies (CSIS), Middle East Program, February 2011. Link here, last accessed December 2013.

Notes

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ADDRESSING WATER SCARCITY IN SAUDI ARABIA: POLICY OPTIONS FOR CONTINUED SUCCESS

19. Historical water tariffs in Saudi Arabia tend to be low, therefore economic incentives have limited impact. To this point, Saudi Arabia’s water subsidies as a percentage of oil export revenue are the highest in the Gulf Cooperation Council (GCC) at seven percent. However, there are reports that the government is studying options around increasing water tariffs for conservation purposes. See “Saudi Arabia Water Report Q4 2013” (endnote 8) and: Gavin, J. “The Gulf’s Unquenchable Thirst.” Middle East Economic Digest (MEED). Vol. 56, Issue 2, January 13, 2012. The GCC includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

20. Saudi Arabia consumes 91 percent more water per capita than the global average. See: Booz & Co. “Fresh Water in the GCC: Addressing the Scarcity Problem.” Press Release, January 23, 2012. Link here, last accessed December 2013.

21. Almashabi, D. “Saudi Arabia Approves $1.6 Billion for Water Projects.” Bloomberg News, May 21, 2013. Link here, last accessed December 2013.

22. In fact, on December 31, 2013, the NWC and the Saudi Electricity Company signed an agreement for the SEC to buy treated water (reuse water) for its power stations over 25 years, starting in 2018. See: “Saudi Electricity Company: Saudi Arabia: NWC and Electricity Company signed on selling Treated Water.” 4-Traders.com, Al Bawaba Ltd., Acquiremedia 2014, January 2, 2014. Link here, last accessed January 2014.

23. See endnote 5.

24. See endnote 6.

25. Global Water Intelligence (GWI). Global Water and Wastewater Quality Regulations 2012. Media Analytics Ltd. 2012.

26. Outside of the recreation sector. See explanation in endnote 29.

27. See endnote 5.

28. “% of total (’35)” and “CAGR ’12-‘35” are calculations by GE authors.

29. GE authors assume non-zero volume of 100 m3/day (0.1 M m3/day) for 2012 recreation reuse in order to estimate CAGR value. Adjusting this value up or down impacts CAGR.

30. The MOWE regulates wastewater discharges to the environment and to the public sewage network, while the PME regulates direct discharges to water bodies and sets pre-treatment standards for industrial discharges. Additional key agencies which regulate and manage water reuse in Saudi Arabia include the Ministry of Commerce & Industry (MCI) and the Ministry of Municipal and Rural Affairs (MOMRA), among others. This and much of the following information is from footnote 19 (GWI, 2012).

31. Treated Wastewater and Reuse Bylaw No. 42, 2000 1421 H, 2000.

32. See endnote 12.

33. See endnote 25.

34. See endnote 12.

35. See endnote 25.

36. Using Treated Water for Irrigation: Controls, Conditions, Offences and Penalties. Saudi Arabia requirements for restricted and unrestricted irrigation meet World Health Organization (WHO) and strict California Title 22 standards, respectively. California’s water recycling/reuse regulations can be found here (last accessed in December 2013).

37. See endnote 12.

38. See endnote 25.

39. Modified graphic and information from KAUST (2010-11), se endnote 12.

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ADDRESSING WATER SCARCITY IN SAUDI ARABIA: POLICY OPTIONS FOR CONTINUED SUCCESS

40. For example, there are no specific Kingdom-wide requirements for reuse involving groundwater recharge or recreational uses. However, the MOWE must issue a permit. In food industries, on the other hand, the use of treated wastewater is not allowed. Source: endnote 25.

41. No compliance data was found by these authors.

42. SAR 5,000-10,000, or ~$1,300-$2,666 in 2012 US dollars (GWI, 2012).

43. Already in 1975, the two cities had established an environmental regulatory body, the Royal Commission for Jubail and Yanbu (RCJY), which owns and operates all utilities that provide services to industry and the community. Marafiq, a joint stock company between RCJY, Saudi Basic Industries Corporation, ARAMCO, and the Public Investment Fund, is the utility company for Jubail and Yanbu, and provides power and water for the industrial base. Information from GWI (2012), cited in endnote 25 above.

44. Fines can be significant, with fixed penalty fines up to SAR 250,000 ($65,000 in 2010 USD). See Environmental Regulations: RCER-2010 Volume III, link here, last accessed December 2013.

45. See endnote 12.

46. See endnote 36 regarding California Title 22 standards.

47. See endnote 30.

48. Kingdom of Saudi Arabia. 9th Development Plan 2010-2014, Chapter 25, Water and Sanitation. 2010. Link here, last accessed December 2013.

49. The Royal Embassy of Saudi Arabia. Water Resources. 2013. Link here, last accessed March 2013.

50. See endnote 48.

51. See endnote 6.

52. Lynch, D. “’Greening’ the oil sands? Challenging the myths and confronting the realities.” 88th Annual GETCA, March 1, 2013. Link here, last accessed January 2014. Dr. Lynch notes that “8.5 million bbls/day could be produced for greater than 50 years,” with the understanding that not all of these resources will necessarily be exploited.

53. See endnote 52.

54. There are many in-situ techniques available, and many use large volumes of water and/or steam, including cyclic steam stimulation (CSS), steam-assisted gravity drainage (SAGD), vapor extraction (VAPEX), and toe-to-heel-air-injection (THAI). For a good primer on the oil sands and extraction technologies, see Reuter, Y. et al. Canada’s Oil Sands: Shrinking Window of Opportunity. RiskMetrics Group and Ceres, May 2010. For report, go here. (Registration required.)

55. AER Canada. Thermal In Situ Water Publication, developed in support of D081 (Thermal In Situ Recycling Directive). Data reflects GE analysis. Link here, last accessed January 2014.

56. Formerly known as the Energy Resources Conservation Board (ERCB).

57. AER Canada. Link here, last accessed January 2014.

58. AER Canada. Tailings Performance Criteria and Requirements for Oil Sands Mining Schemes. February 3, 2009. Link here, last accessed January 2014.

59. See endnote 52.

60. See endnote 54.

61. See endnote 54.

62. AER Canada. “Directive 081: Water Disposal Limits and Reporting Requirements for

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ADDRESSING WATER SCARCITY IN SAUDI ARABIA: POLICY OPTIONS FOR CONTINUED SUCCESS

Thermal In Situ Oil Sands Schemes: Frequently Asked Questions.” Link here, last accessed January 2014.

63. AER Canada. “Directive 081: Water Disposal Limits and Reporting Requirements for Thermal In Situ Oil Sands Schemes.” Link here, last accessed January 2014.

64. See endnote 63.

65. Cleland, J. “Oil sands operators target smartest use, reuse of water resources.” E&P Magazine. August 3, 2012. Link here, last accessed January 2014.

66. For the full GE Report, see: “Gathering Steam: High-Tech Evaporators Help Oil Sands Operators Recycle Liquid Waste.” November 3, 2013. Link here, last accessed January 2014.

67. See endnote 65.

3 4© 2014 General Electric Company. All Rights Reserved.This material may not be copied or distributed in whole or in part, without prior permission of the copyright owner.

© 2014 General Electric Company. All Rights Reserved.This material may not be copied or distributed in whole or in part, without prior permission of the copyright owner.

CHAPTER I CHAPTER I

Author Biographies

Colin Enssle is a Senior Manager at GE Water & Process Technologies (part of GE Power & Water), responsible for global regulatory analysis and product marketing. In this role, Colin analyzes how regulations affect water treatment product markets and create new market opportunities. In addition, he runs global product management and marketing efforts. He joined GE in 2009 to work on cross-business government sales for GE Corpo-rate, and moved to GE Power & Water in 2010.

Colin has over 13 years of experience in the water and environmental fields. Prior to GE, Colin held various roles in project management, consult-ing, and research for ARCADIS U.S., Glacier Water Services, Inc., the Leibnitz Institute, and Solectron GmbH. He also was a Fulbright Scholar at the Ruhr-University Bochum, Germany and a Fulbright Intern at Siemens AG in Munich, Germany.

Colin earned a BA from Gustavus Adolphus Col-lege, two Master’s degrees in Environmental and Earth & Planetary Sciences from Washington University in St. Louis, and an MBA from Columbia Business School.

Jon Freedman is the global government affairs leader for GE Power & Water, Water & Process Technologies. In this role, he monitors and shapes domestic and international water policies and helps GE Power & Water develop technology col-laborations with government entities.

Prior to assuming his current role in February 2005, Jon served as a director for GE’s Corporate Mar-keting Initiatives Group. While in this role he was the project leader responsible for developing GE’s global environmental sustainability initiative, now called ecomagination. He also served as general manager, contractual services for GE Water & Pro-cess Technologies, with responsibility for develop-ing and executing business plans to drive global expansion into a range of water service segments.

Jon joined GE in 2001 as business development leader for GE Energy. During his tenure in that position, Jon led the acquisition of an NYSE-listed global water company and initiated the acquisi-tions of two other NYSE-listed companies.

Jon holds a Bachelor’s degree from the University of Virginia, a law degree from William & Mary, and an MBA in finance from The Wharton School of the University of Pennsylvania.