By: Reuters

French utility company Suez, German company Siemens (SIEGn.DE), opens new tab and Abu Dhabi National Energy Company (TAQA.AD), opens new tab have signed a memorandum of understanding (MoU) to participate in a desalination initiative to help emerging market countries.

WHY IT MATTERS:

Global warming and droughts have put pressure on the amount of drinking water supplies around the world.

In 2021, the United Nations said water scarcity and drought could wreak damage on a scale to rival the COVID-19 pandemic.

Desalination technologies can play a key role in tackling this problem, by making sea water drinkable.

CONTEXT:

This in turn has resulted in business opportunities for companies providing desalination technologies and services.

In June, Namibia - which was facing its worst drought in over a century - said it would start constructing its long-awaited second desalination plant in January 2025.

KEY QUOTE:

"Suez's participation underlines our commitment to developing more affordable and sustainable water supply technologies," said Suez Middle East CEO José Cheurlin.

BY THE NUMBERS:

A 2019 United Nations-backed global study of the desalination industry found the world's roughly 16,000 plants produced on average 1.5 litres of brine for every litre of fresh water.

Saudi Arabia produces the most brine, at 22% of the world's total, the study said.