Towards the Sea, Strive for Strength Ⅰ

Introduction:

Recently, the half-year conference of China Communications Construction Group (CCCC) has attracted attention. Among the key topics, its strategic layout of actively practicing the marine power strategy, seizing global opportunities, and striving for strength through marine development has aroused a strong response. Song Hailiang, Secretary of the Party Committee and Chairman of CCCC, pointed out that the marine economy is a new strategic for construction enterprises to navigate industry cycles and achieve high-quality development. Enterprises must firmly "strive for strength through marine development" and pursue integrated development.

As early as 2022, BOW put forward the "12256" development strategy, identifying the seawater desalination industry as one of the five major strategic new tracks. In the following series, I will review the company's determined exploration and innovative practices through "Strategy", "Technology" and "Projects"...

1. Policy Support: Seawater Desalination Enters A New Development Stage

General Secretary Xi Jinping pointed out that the ocean is a strategic location for high-quality development. The report of the 20th National Congress of the Party emphasizes the development of the marine economy, the protection of the marine ecological environment, and the accelerated construction of a strong maritime country.

In the global water resource composition, seawater accounts for more than 97%, while freshwater resources account for less than 3%. The freshwater resource crisis has developed into a global issue, and the use of desalination technology to produce freshwater from seawater has become one of the effective ways.

In recent years, China has gradually increased its emphasis on the development of seawater desalination industry. The Central Committee of the Communist Party of China, the State Council, the National Development and Reform Commission, and the Ministry of Science and Technology, among other relevant departments, have successively introduced a series of policies and regulations. These policies and regulations focus on the development goals, industrial construction, technological directions, standard systems, and safeguard measures of China's seawater desalination industry. With the release of a series of policies and regulations, the large-scale utilization of seawater desalination has entered a new development stage. (i.e. Yulong refining and chemical project in Yantai, Shangdong Province has adopted BOW’s SWRO membrane)

2. Industry Rise: Great Potential for Seawater Desalination Development

China's seawater desalination industry is in an initial stage. With increasing national emphasis on seawater desalination, the future prospects for desalination are very promising. According to the 'National Seawater Utilization Report' released by the Ministry of Natural Resources, as of the end of 2024, there are currently 158 seawater desalination projects nationwide, with a total capacity of 2.856 million t/d, an increase of 333,000 t/d compared to 2023, representing a growth of 13%. The compound annual growth rate over the past few years has reached 7%.

So as the international seawater desalination market. In 2023, the market size of the global seawater desalination industry was approximately $22.83 billion. According to forecasts by the Institute of Future Industry Research, water scarcity, the depletion of freshwater resources, and rapid advancements in desalination technology will drive the growth of the desalination market. From 2024 to 2029, the global desalination market is expected to grow at a compound annual growth rate of 8.8%, reaching a market size of $37.9 billion by 2029.

3. Strategy Navigation: Create A Closed-Loop Aquatic Ecosystem

CCCC implements the 'Five Completeness, Four Major, and Five Types' strategy, creating a comprehensive marine economy industrial chain development model with CCCC characteristics and achieving positive results. Numerous well-known offshore engineering construction projects have been implemented in ports, offshore platforms, among others. Seawater desalination, as a crucial component of offshore engineering, will further consolidate and enhance the group's offshore construction advantages, forming a synergistic development of industrial chain businesses.

BOW places great emphasis on the development of the marine economy. In 2022, the company proposed the '12256' development strategy, listing seawater desalination as one of the five major business areas. Through continuous technological innovation and practice, the company has accumulated significant technological, operational, and full-industrial chain advantages in the seawater industry.

In the first half of this year, BOW established a seawater industry business department, reshaping the new direction of marine economic development from a strategic height and organizational structure, with the core concept of 'manage the ocean and symbiotic recycling', aims to create a global leading demonstration park for comprehensive utilization of marine resources by constructing a three-in-one industrial ecosystem closed loop of 'solar and wind green power - seawater desalination - resource extraction'.

This model will fully leverage BOW's membrane technology advantages to achieve green power producing green water, enhance the resource utilization of brine, significantly improve the comprehensive efficiency of the seawater industry, and create a new benchmark for the comprehensive utilization of seawater industry.

Facing the sea for prosperity and strength, in the era wave of building a strong maritime nation, BOW with membrane technology as its spear and circular ecology as its shield, is transforming the blue domain into a strategic new blue ocean of high-quality development. When 'solar and wind green power' illuminates the seawater desalination factory, and when rare resources in the brine are cyclically captured, BOW's blue revolution proves: deepening the ocean is deepening the future of Chinese-style modernization!