The New York Times
A desalination industry has grown in cities near Beijing.
There is but one wrinkle in the $4 billion plant: The desalted water costs twice as much to produce as it sells for. Nevertheless, the owner of the complex, a government-run conglomerate called S.D.I.C., is moving to quadruple the plant’s desalinating capacity, making it China’s largest.
“Someone has to lose money,” Guo Qigang, the plant’s general manager, said in a recent interview. “We’re a state-owned corporation, and it’s our social responsibility.”
In some places, this would be economic lunacy. In China, it is economic strategy.
As it did with solar panels and wind turbines, the government has set its mind on becoming a force in yet another budding environment-related industry: supplying the world with fresh water.
The Beijiang project, southeast of Beijing, will strengthen Chinese expertise in desalination, fine-tune the economics, help build an industrial base and, along the way, lessen a chronic water shortage in Tianjin. That money also leaks away like water — at least for now — is not a prime concern.
“The policy drivers are more important than the economic drivers,” said Olivia Jensen, an expert on Chinese water policy and a director at Infrastructure Economics, a Singapore-based consultancy. “If the central government says desalination is going to be a focus area and money should go into desalination technology, then it will.”