Aqualyng secures funds to construct seawater desalination plants in China
Norway-based Aqualyng has secured an investment of $12m from International Finance Corp., (IFC), a member of the World Bank Group, to construct seawater desalination projects in China to meet the growing demand for fresh water in the country.
The company is aiming to build the new desalination plants across China and in other Asian parts to produce about 100,000m³ of drinking water every day and address the scarcity of fresh water.
The company secured the investment from IFC as part of its $30m fundraising, and it also attracted investments from Pareto Staur Energy and Clean Resources Asia Growth Fund, in which IFC is also an investor.
Aqualyng executive chairman Bernt Østhus said the company may also get private capital in the future because of IFC's investor status.
"IFC is known for quality investments and has a reputation for carefully selecting the companies they work with. IFC's global network will also help us to expand faster in emerging markets." Østhus added.
IFC East Asia and the Pacific director Sérgio Pimenta said the financial institution is investing in Aqualyng to help China cover the water shortage.
"By partnering with a leading desalination company in Asia, we are also demonstrating that private sector players can be instrumental in helping solve such developmental challenges," Pimenta said.
Joint venture partners, Aqualyng and Beijing Enterprises Water Group have together commissioned first stage of the Caofeidian desalination plant in Hebei province.
The Caofeidian desalination plant is capable of processing about 50,000m³ of fresh water every day.
Aqualyng's share in the project was guaranteed by World Bank Group's Multilateral Investment and Guarantee Agency.
Image: Aqualyng to build desalination plants in China to produce drinkable water. Photo: Manojkiyan.