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Less widespread membrane technologies include forward osmosis and membrane distillation (MD), the latter using low-grade heat to drive water-vapour transport through a hydrophobic microporous membrane. Hybrid thermal-membrane desalination processes that combine principles of distillation and membrane separation have also been deployed, e.g. in the MENA region, but the thermal component has proven costlier and less  efficient compared to RO.

 

Figure 2. Desalination capacity (m3/d) in the EU, from different feedwater sources
Figure 2. Desalination capacity (m3/d) in the EU, from different feedwater sources

Source: DesalData

More recently, climate-driven droughts have intensified pressure on water resources across the EU, accelerating investment in desalination capacity. Spain - which accounts for approximately 60% of European desalination capacity - more than doubled the share of desalinated water in Barcelona's drinking water supply during the 2024 drought, reaching 33% of total supply compared to just 3% in 2021. The Spanish government has committed to doubling national installed desalination and reuse capacity by 2027, backed by €23 billion in public funding. New large-scale infrastructure is also under development in Catalonia, including the expansion of the Tordera desalination plant (Tordera II, expected capacity 60 hm³/year, operational by 2028) and the new Foix plant, both co-financed by the EU Recovery and Resilience Facility (RRF).

 

In the Mediterranean Member States, most facilities use seawater as feedwater, whereas the situation reverses in the rest of the EU, with inland or brackish water used as the main source. Wastewater is a minor source of feedwater in the entire EU (Figures 4 and 5).

desalination
Figure 4. Distribution of EU installed in 2025 (sea and brackish water)-left- Figure 5. Feedwater source of desalination capacity plants in the EU -right-

Source: DesalData

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Projections indicate the agricultural impacts of climate change will intensify in the coming decades as, under medium and high emission scenarios, droughts that currently occur every 100 years could happen every 10-30 years on average in southern Europe by the 2070s[20]. Such intensification threatens severe, widespread consequences for European agriculture, potentially endangering regional food security[21]. Against this backdrop, desalination is considered as a promising option for making agriculture less dependent on rainfall and utilising water sources that are considered unusable without treatment[22], such as inland brackish water and wastewater. 

In Europe, Spain is increasingly reliant on desalination as a key water source for agriculture, as well as Greece and Cyprus, to supplement irrigation water, primarily for the growth of fruits, vegetables, and grapes.

Spain, for instance, has one of the world’s most extensive seawater desalination capabilities, with major facilities, such as Torrevieja, Alicante I and Valdelentisco plants. These facilities employ reverse osmosis technology to produce over 200 million m3 of water annually. Besides being supplied to the municipalities as drinking water, this water is channeled to irrigation districts in the southeastern Murcia region, which predominantly produce fruit, vegetables, and grapes[23]. Studies suggest that, during drought periods, when surface water resources are strained, desalinated water constitutes between 50-80% of the total agricultural irrigation supply in this region.[24]

In Greece, a combination of seawater desalination and treated wastewater reuse fulfills up to 60% of the irrigation demand for major greenhouse horticulture crops, including tomatoes. This approach is particularly crucial in drought-prone areas around Athens during the summer months[25]. Similarly, on the Island of Cyprus, where seasonal droughts are a common occurrence, brackish water desalination and seawater desalination account for over 15% of the total agricultural irrigation supply.[26]

Here, citrus fruits are particularly reliant on desalinated water for growth. However, studies indicate risks associated with the long-term use of desalinated water for irrigation, including soil salinisation. This requires more effective regulation on appropriate irrigation methods and crop selection to prevent soil degradation[27]. For example, desalinated water requires boron control in order to avoid toxicity to plants, a cost-intensive process which can be mitigated if the water is blended with other sources.

Some of the main challenges and opportunities to scale up desalination for agriculture include:

  • The high cost of desalinated water and its negative environmental impact, primarily caused by energy requirements and brine management, remain major challenges. The estimated cost of desalinated water for irrigation ranges from 0.50€ to 2€ per cubic metre[28]. For comparison, farmers are often charged between 0.05€ to 0.35€ per cubic metre for surface irrigation water, while unconventional sources such as reclaimed wastewater may cost between 0.15€ to 0.60€ per cubic meter[29]. However, it should be noted that currently many European countries undervalue water from conventional surface and groundwater sources, which makes desalination appear expensive in comparison[30]. The greater cost of desalinated water makes it difficult to be competitive without subsidies, except for crops with high profit margins.
  • Energy-wise, transitioning to renewable electricity sources, such as solar and wind, that are becoming cost-competitive with fossil fuels could reduce costs[31]. However, intermittent power generation from renewables affects reliability of water supply, necessitating storage or flexible on-demand operation capability. Pressurised irrigation techniques such as subsurface drip irrigation are amenable to the on-off intermittent supply patterns from renewables-powered desalination systems[32].
  • While technical and economic hurdles remain, RO desalination of saline water coupled with renewable energy has promising potential to provide alternative irrigation water sources. RO has emerged as the most widely used and suitable desalination technology due to its modularity, declining costs, and reliability compared to thermal distillation processes[33]. To employ desalinated water for direct uses on soil, it has to be blended with other water sources, to compensate for its lack of nutrients (calcium, magnesium, sulphur) needed for plant growth and soil health, and must undergo a targeted remineralisation to reduce its corrosivity[34].
  • Desalination can help replenish the water cycle: when desalination is coupled with water reuse for irrigation, there is a net transfer of water to the land phase of the hydrologic cycle. This may help mitigate the hydrological impacts of climate change in regions such as southern Europe. In addition to reducing groundwater abstraction, reuse of desalinated water for irrigation can for example facilitate agriculture, ecosystem restoration and vegetation growth in otherwise unproductive regions[35]

As regards brine disposal, it can become an issue when considering the use of desalination plants to support agricultural water needs. There have been several studies on how to mitigate the negative effects of brine[36], but also on how to use it to agricultural advantage, such as reusing it in hydroponic culture[37]

The economic size of the desalination market in the EU requires estimating complementary segments across the desalination value chain. In the absence of official disaggregated statistics on turnover, value added and employment for each of these segments at the EU level, the turnover of the desalination operation segment can be estimated by using average costs of producing desalinated water and installed capacity as reference indicators (Figure 6)[37].

Size of the EU Desalination subsector, 2009-2023. Turnover, GVA and gross operating surplus in billion EUR, persons employed (thousand), and average wage (thousand EUR)
Figure 6. Size of the EU Desalination subsector, 2009-2023. Turnover, GVA and gross operating surplus in billion EUR, persons employed (thousand), and average wage (thousand EUR)

 

Spain takes up the largest share of the desalination operation segment, employing 74% of the subsector’s workforce (5 177 persons) and generating 76% of its GVA (EUR 474 million) (Figure 7). Greece, Italy, Cyprus and Romania (in this order) employed another 18% of the subsector workforce (1 289 persons employed in the four countries). While Italy, Greece, Cyprus and the Netherlands (in this order) generated nearly 18% of the subsector’s GVA (EUR 110 million in total).

Share of employment and GVA in the EU Desalination subsector, 2023
Figure 7. Share of employment and GVA in the EU Desalination subsector, 2023
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Afterwards, the development of desalination assets involves a complex value chain, typically encompassing three main phases:

  1. Bidding: the initial phase where project proposals are solicited and evaluated, on the basis of financing arrangements to be subscribed at the time of the contract award.
  2. Design and construction: this phase includes permitting and licensing, entitlement, technology selection, construction, regulation compliance, commissioning and performance testing.
  3. Operation: post-commissioning, this phase focuses on the facility's operation and maintenance, addressing aspects such as the quality of source water, power supply, and demand for desalinated water.

The desalination industry has become increasingly standardized, de-risked, and bankable over time, especially for large-scale RO projects. Each phase involves diverse players, reflecting the technical complexity of the facilities being developed. There is a general trend towards increased specialisation among these players. Project sponsors are increasingly seeking economies of scale through the development of larger assets, particularly in the case of reverse osmosis technology. The roles of actors and contractual interfaces are highly standardized in modern desalination projects, especially under IWPP frameworks where an IWP establishes a special purpose vehicle (SPV) company, where the client public corporation may or may not have equities, to develop the project and sell water. The SPV, in turn, may have the option to award a contract to an engineering, procurement and construction (EPC) operator. As an alternative, public corporations can directly award a turnkey contract to EPC operators. 

Desalination risks (including permitting and licensing, technology selection, construction challenges, regulatory compliance, financial arrangements, source water quality, power supply reliability, and fluctuations in water demand) are increasingly well-understood, mitigated, and transferred along these contractual interfaces.

Fully integrated models including IWPPs / IWPs are now practically a standard. The development of desalination projects involves selecting appropriate procurement contracts between private entities and local governments or authorities. Given the high costs and long lifespans of desalination assets, these choices are crucial in effectively distributing responsibilities and risks. The (mostly private) developers take on end-to-end responsibilities, including financing, construction oversight, and long-term operation and maintenance. 

Three main project delivery methods are commonly employed in the desalination sector, each varying in the degree of public and private involvement and associated risk allocation:

  1. Build-Operate-Transfer (BOT) / Build-Own-Operate-Transfer (BOOT): in these models, private entities finance, construct, and operate the desalination facility for a specified period before transferring ownership to the public authority. This approach allows public authorities to leverage private capital and expertise while deferring ownership responsibilities until after the operational phase.
  2. Design-bid-build (DBB): Here, the public authority separately contracts the design and construction phases, maintaining significant control over the project. However, this method may result in fragmented responsibilities and potential inefficiencies due to the separation of design and construction contracts.
  3. Design-Build-Operate (DBO): under this model, a single private contractor is responsible for the design, construction, and operation of the facility. The public authority retains ownership and financing responsibilities, while the contractor assumes operational risks, potentially leading to more integrated and efficient project delivery. 

The degree of risk assumed by private and public entities varies across different models. In BOOT arrangements, private operators assume most project risks, including financing, construction, and operation. They recover investments and operational costs over the project's lifespan through long-term agreements with public authorities. In DBO contracts, on the other hand, the public authority outsources design, construction, and operation phases to a contractor, who typically does not bear financing risks. The contractor is paid for design and construction upon completion and receives an operating fee during the operational period. The agreements are typically non-recourse finance deals.

Reverse-osmosis desalination facilities present challenges due to the sensitivity of membrane performance to feedwater quality variations. Long-term performance assessments during commissioning are difficult, as key operational variables, such as membrane and filter replacement rates, can only be verified well after commissioning. Consequently, DBO contracts may include an operational period of two to five years to address these uncertainties. As membrane fouling risks can be mitigated by proper pretreatment, membrane suppliers may also provide a membrane replacement rate guarantee which allows the operator to replace membranes at no cost provided that pre-treated water quality is compliant with agreed conditions. 

BOOT schemes have gained popularity in the desalination sector due to their ability to allocate significant financial risks to private partners. These arrangements often involve long-term Water Purchase Agreements (WPAs) between the private owner/operator and the local water authority. The WPAs specify conditions for water delivery, including quantity, quality, delivery pressure, and tariffs. Tariff structures typically encompass fixed capacity payments to cover capital costs and variable payments for operational expenses. The public authority retains in these cases only the risks related to the demand for water and the risk that seawater quality fall outside a certain design envelope.

Trends and drivers

Market expansion

Desalination is fast becoming a conventional method for water treatment globally. In line with global trends, the European desalination market is expected to enter an expansionary phase not only to address the consequences of climate change, but also to embrace policy-driven technological developments to reduce its operational costs and environmental impacts. Two main trends can be observed in the market. On the one hand, large-scale plants are becoming more common, with capacities growing due to advancements that lower unit costs. On the other hand, smaller scale desalination plants are gaining traction for municipal purposes, often combined with architecturally elegant structures, in order to increase resilience and decrease energy costs due to far distance transportation.

Green financing

Numerous EU initiatives are encouraging investments in sustainable desalination technologies, among others. This includes BlueInvest, the EU initiative aimed at accelerating innovation and investment opportunities in the sustainable blue economy. To-date, the initiative has distributed grants for EUR 43.8 million, provided technical assistance to more than 70 companies, and supported blended finance instruments for blue economy start-ups and scale-ups. Furthermore, the EU Sustainable Finance Taxonomy  classifies desalination projects as environmentally sustainable if they meet specific criteria. These criteria include using energy efficiently, keeping greenhouse gas emissions low, and minimising harm to biodiversity. In practice, this means new desalination plants should maximise the use of renewable energy and ensure that brine discharges are safely managed (diluted or treated) to avoid marine damage. Projects that fulfil such requirements can be eligible for green financing and possibly national or EU subsidies. For example, the EU’s Recovery and Resilience Facility and other financing instruments have been used by Member States to support the development of climate-resilient water infrastructure, including desalination.

Cost reduction and technological advancements

Over recent decades, improved membrane technologies (especially reverse osmosis) and energy recovery devices have driven down the cost of desalination significantly. Advanced research and economies of scale have helped reduce costs by as much as 60% over the past three decades.  Increased automation and smart monitoring systems also help optimise performance and reduce downtime. It has been noted that life-cycle desalinated water costs have fallen globally from an average of USD 1.25-1.50 per m3 in the early to mid-1990s to less than USD 0.60 per m3I (i.e. about EUR 0.50) today, and the trend has not reversed. This trend is mainly due to the adoption of RO instead of thermal technologies. 

Integration with renewable energy

Given that energy costs can account for 40–60% of the overall desalinated water cost, there is a strong industry push to couple desalination plants with renewable energy sources (such as solar and wind), especially in the case of small decentralised and off-grid plants. This integration not only reduces operating costs but also aligns desalination with global decarbonisation efforts. In the EU, projects such as PRODES (2005-2008), DESALIFEDESOLINATION, and SOL2H20 are sheer examples of the increasing efforts in reducing the environmental footprint and costs of desalination by leveraging renewable energy. The EU-funded W2EW project (H2020, GA 831041) demonstrated an integrated wave-powered desalination solution designed for off-grid islands and isolated coastal communities, with plans to extend the model to large-scale utilities. Although they are at differing stages of market readiness, these technologies hold promising prospects.

Innovation in desalination methods

Beyond conventional reverse osmosis, emerging technologies – such as membrane distillation, forward osmosis, and capacitive deionization – are under development. Although unlikely to reach large scale in the short run, these methods aim to further improve energy efficiency and reduce environmental impacts, particularly in brine management (Box 1). 

Box 1. Brine: from a threat to the marine environment to an opportunity for the economy

The concept of circular economy has at its core the goal to eliminate waste and promote the continual use of resources by designing products for longevity, reuse, repair, and recycling. Desalination is no exception. Brine is the “unwanted” by-product of desalination processes, a hot concentrate of dissolved salts and other minerals, whose disposal is an environmental concern due to the potential impacts on marine ecosystems. SEA4VALUE, a H2020-funded project, is designing and implementing technologies for recovering minerals and metals from seawater desalination brines. The aim is to make desalination plants the third source of valuable raw materials in the European Union. Not only does the project have the potential for securing the supply of critical raw materials such as magnesium, boron, scandium, gallium, vanadium, indium, and lithium, but it can also contribute to making desalination more economically efficient by valorising its by-products. 

At the same time, expectations around brine valorisation need to remain realistic. Although the extraction of valuable minerals from desalination brines has been demonstrated, its commercial potential is currently limited by technical, logistical and supply-chain constraints, including the relatively low concentration of many target materials and the costs of selective recovery. In the short to medium term, the strongest opportunities may be in recovering materials that can be reused in desalination operations or integrated into local industrial supply chains. Brine valorisation can therefore support circular economy objectives and improve the economics of desalination at the margin, but it is likely to remain a niche application unless technological advances, market conditions and regulatory incentives significantly improve its viability.

While these technologies are primarily in the research and pilot-scale stages, they bear a significant potential:

  • Membrane distillation is a thermally driven process where a hydrophobic membrane separates a heated saline solution from a cooler permeate side. The temperature difference induces water vapour to pass through the membrane, leaving salts and impurities behind. Advantages of membrane distillation include operation at lower temperatures and pressures compared to conventional thermal processes, making it suitable for integrating with low-grade or waste heat sources. However, challenges such as membrane fouling and scaling, along with relatively low flux rates, have limited its widespread adoption.
  • Forward osmosis utilises the natural osmotic pressure difference between a saline feed solution and a concentrated draw solution to induce water flow through a semipermeable membrane. This process requires less hydraulic pressure than reverse osmosis, potentially reducing energy consumption. However, forward osmosis does not by itself produce freshwater: the diluted draw solution must usually be regenerated, and this step can offset or even outweigh the energy benefits of the process. As a result, forward osmosis is most promising in applications where draw-solution regeneration can be achieved efficiently, for example using low-grade or waste heat, or where the diluted draw solution can be used directly. Remaining challenges include draw-solution selection and recovery, membrane fouling, reverse solute flux and relatively low water flux.
  • Capacitive deionisation is an electrochemical technique where ions are removed from water by applying an electrical potential across porous electrodes, causing ions to adsorb onto the electrode surfaces. This method is energy-efficient, especially for low to moderate salinity waters, and operates at ambient pressure without the need for high-pressure pumps. However, its effectiveness decreases with increasing feed water salinity, and electrode material degradation over time remains a concern.
  • Nanofiltration is a pressure-driven membrane separation process that filters water through membranes with pore sizes typically less than 2 nanometres. Positioned between ultrafiltration and reverse osmosis in terms of selectivity, nanofiltration effectively removes divalent ions and larger molecules while allowing most monovalent ions to pass through. Because it operates at lower pressures, nanofiltration can reduce energy consumption compared with reverse osmosis in certain applications, especially for brackish waters or where partial desalination is sufficient. In particular, a study has shown that nanofiltration can be as effective as reverse osmosis in desalination while consuming approximately 29% less energy. However, nanofiltration is generally not a full substitute for reverse osmosis where high salt rejection or low-salinity drinking water is required. Its suitability depends on feedwater salinity, target water quality and the intended use of the product water, and it is often better considered as a selective treatment, softening, pretreatment or hybrid-process option rather than a universal desalination solution

The ultimate goals of new technologies are to reduce energy consumption and/or increase the recovery rate, that is the proportion of intake water that is converted into high quality (low salinity) water for sectoral use. [AP1] [AP2]  In particular, further improvements in reverse osmosis membrane performance remain possible, particularly in terms of permeability, selectivity, fouling resistance and durability. However, in seawater desalination the potential for major energy savings from membrane improvements alone is limited by osmotic pressure and thermodynamic constraints. Future efficiency gains are therefore likely to depend not only on better membranes, but also on improved module design, energy-recovery devices, operating strategies and system configurations such as staged, batch or semi-batch reverse osmosis.

Update: 21.05.2026