Energy Policies of IEA Countries. International Energy Agency’s (IEA), 2006 Review.

Prior to 2005, Australia had no large-scale desalination facilities. In 2007, Western Australia became the first state to build a large-scale seawater desalination plant in Australia. The Western Australia state government saw desalination as part of a solution to a drought that has been depleting its water supplies. The drought, which began in 2002, continues to plague many cities and regional areas across Australia. As a result of Western Australia’s success, and the drought’s continuing adverse effects, other state-based governments have progressed plans to build large-scale desalination plants.

Industry sources anticipate that desalination projects will be worth around USD700 million per year for the next three years. Reverse osmosis desalination for brackish water is the most-utilized desalination method in Australia. Degremont (France), Veolia (France), and Unitied Utilities (U.K.) have won most of the projects. U.S. companies have not been active in this segment. U.S. companies will need to establish a local sales presence, and form strategic alliances with major civil engineering firms, to take advantage of opportunities in the Australian desalination market.

The Environment Management Industry Association of Australia has collaborated with a number of industry groups to prepare and present an analysis of the environment industry, its prospects in domestic and export markets, and initiatives that can bring those prospects to fruition. This study precedes development of the Action Agenda for the environment industry by Industry Science & Resources, Environment Australia, and the industry itself. It therefore can play a useful role in highlighting strategic issues that can be addressed to improve industry competitiveness. The central themes underlying all recommendations brought forward in this report are greater integration of the industry, greater collaboration between industry and government and an overarching market development strategy. In all, six strategic agenda areas are highlighted: • unify the industry laterally • promote the industry through an Australia Inc. showcase and other marketing initiatives • engender innovation & capability diffusion • integrate the industry vertically • develop the SMEs of the industry • build industry-government collaboration Central to the preparation for, and delivery of, outcomes from these recommendations is the establishment and of a National Environment Industry Alliance. It is proposed that this body be a joint Government-industry alliance resourced and funded by both and directed in its activities by the partners from both sectors.