Sydney Desalination Plant

What Sydney Desalination Plant does

Sydney Desalination Plant Pty Limited is an Australian private infrastructure company that operates a single reverse osmosis seawater desalination facility at Kurnell in southern Sydney, New South Wales. The plant draws seawater from the Tasman Sea through four caged intake pipes approximately 300 metres offshore and 25 metres below the sea surface, pre-treats it through drum screens and anthracite/sand filtration, and then forces it through 36,000 reverse osmosis membranes at 60 bar pressure. Post-treatment minerals are added before fluoridation and chloridation, and the finished drinking water is pumped via an 18-kilometre pipeline under Botany Bay into Sydney Water's distribution network at Erskineville, where it is blended with other Sydney supplies. Maximum production capacity is 250 million litres per day (91.25 gigalitres per annum), sufficient to supply up to 15 per cent of Sydney's average drinking water needs without any reliance on rainfall, serving approximately 1.5 million people in homes and businesses south of Sydney Harbour and as far west as Bankstown.

The facility runs on 100 per cent renewable energy procured from NSW wind farms under long-term arrangements, including as a foundational customer of the Capital Wind Farm, and incorporates energy recovery devices that reduce high-pressure pumping energy consumption by 40 to 45 per cent. The plant operates under a Network Operator's Licence under the Water Industry Competition (WIC) Act 2006, regulated by IPART (current licence: 2025 WICA Operator Licence No. 25_018), and was designed to ramp from a baseline of around 20 per cent of capacity to full output on short notice. Originally commissioned in 2010 as a drought-response asset, it has operated continuously since March 2019 following NSW's Greater Sydney Water Strategy of 2022. Sydney Water is the sole direct customer under an exclusive bulk supply arrangement, with pricing set by IPART every five years on a cost-recovery basis; the current determination took effect from July 2023 and the next regulatory proposal is due in September 2026 for the period 1 July 2027 to 30 June 2032.

The company is fully owned by Utilities Trust of Australia, an Australian open-ended core infrastructure fund for institutional investors managed by Morrison, following UTA's December 2025 acquisition of Ontario Teachers' Pension Plan's 60 per cent stake. Day-to-day operations and maintenance are contracted to Veolia Water Australia Pty Ltd, which also holds the site's Environmental Protection Licence under the Protection of the Environment Operations Act 1997. The asset has a Critical Infrastructure Declaration status and was built with expansion capability that could double current output to 500 million litres per day.

Name

Sydney Desalination Plant

Legal name

Sydney Desalination Plant Pty Limited

Website

https://sydneydesal.com.au

Company type

Private

Founded year

2006

Operating status

Operating

Headcount range

11–50 employees

Short description

Sydney Desalination Plant is a private, IPART-regulated infrastructure company operating a 250 million-litre-per-day reverse osmosis facility at Kurnell, NSW, that supplies desalinated drinking water exclusively to Sydney Water for distribution across Greater Sydney. The asset is fully owned by Utilities Trust of Australia and operated by Veolia Water Australia.

Ownership category

akta.pro rank

Product category

Water Desalination Services

NAICS

Water Supply and Irrigation Systems (22131), Water Supply and Irrigation Systems (221310)

SIC

Water Supply (4941), Water, Sewer, Pipeline, Comm & Power Line Construction (1623)

akta.pro primary industry

Seawater Reverse Osmosis (SWRO) Plants & Operations (EUANAFAA)

akta.pro secondary industries

Post-Treatment & Remineralization (Stabilization, Blending, Disinfection) (EUANAFAG), Pre-Treatment & Fouling Control (UF/MF, DAF, Coagulation/Filtration) (EUANAFAF)

Keywords

• Seawater desalination services
• Drinking water supply
• Reverse osmosis treatment
• Bulk water infrastructure
• Municipal water production

Headquarters

HQ city

Kurnell

HQ country

Australia

HQ region

Oceania

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Operations, Supply Chain, Personnel, Technology or R&D, Marketing or Sales

Revenue model

1. Water supply to Sydney Water: The Sydney Desalination Plant produces high-quality drinking water and sells it to Sydney Water, which delivers it to homes and businesses across Greater Sydney. The plant charges Sydney Water based on the outcome of IPART determinations. Maximum prices are set every five years by the Independent Pricing and Regulatory Tribunal (IPART) under the Water Industry Competition (WIC) Act. The plant has operated continuously since March 2019. Desalinated water costs approximately 89 cents for 1,000 litres (less than 0.1 of a cent per litre).

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels5 records

Core offering

Sydney Desalination Plant operates a large-scale reverse osmosis seawater desalination facility at Kurnell, NSW that converts seawater drawn from the Tasman Sea into high-quality drinking water. The plant supplies up to 91.25 gigalitres per annum of treated water exclusively to Sydney Water for distribution to homes and businesses across Greater Sydney, providing up to 15% of Sydney's average drinking water needs without reliance on rainfall. It has operated continuously since March 2019 under a regulated, flexible full-time arrangement, with current production of approximately 100 million litres per day.

Product overview

Sydney Desalination Plant operates as a single-purpose critical infrastructure asset providing drinking water production services. The plant uses reverse osmosis membrane technology to desalinate seawater drawn from the Tasman Sea, producing up to 91.25 gigalitres per annum of drinking water. Water is supplied exclusively to Sydney Water via an 18km pipeline under Botany Bay, entering the network at Erskineville. The facility operates on a flexible full-time basis under its WICA Network Operator's Licence, producing between approximately 20 to 91.25 gigalitres annually. The company is owned by Utilities Trust of Australia and operated by Veolia Water Australia Pty Ltd.

Differentiator

Problem solved

Functional benefit

Products and services

• Sydney Desalination Plant (Bulk Drinking Water Supply) A reverse osmosis seawater desalination service that converts Tasman Sea seawater into high-quality drinking water and supplies it exclusively to Sydney Water via an 18km pipeline under Botany Bay. The plant produces up to 91.25 gigalitres per annum (250 million litres per day) and can provide up to 15% of Sydney's average drinking water needs without reliance on rainfall, serving approximately 1.5 million people south of Sydney Harbour and as far west as Bankstown.

Quantifiable outcome

• Provides 15% of Sydney's drinking water needs without rainfall dependence
• +4 more outcomes

Named customers1 record

Segments2 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Three partnerships are on record, tiered core.

• Veolia Water Australia Pty LtdcoreImplementation/ SI/ Consulting PartnerVeolia Water Australia Pty Ltd operates and manages the Sydney Desalination Plant under an operations and maintenance contract. The partnership includes biodiversity initiatives on site that engage local stakeholders and allow the plant to give back to community and country. Veolia also holds an Environmental Protection Licence for the plant under the Protection of the Environment Operations Act 1997.
• Veolia Water Australia Pty LtdcoreImplementation/ SI/ Consulting PartnerVeolia Water Australia Pty Ltd is disclosed as the plant's operations and maintenance contractor in the Privacy Policy, confirming its role as the third-party service provider that operates and manages the desalination plant on behalf of SDP.
• NSW Wind Farms (Renewable Energy)coreOthersThe plant is 100% powered by renewable energy sourced from NSW wind farms. The Sydney Desalination Plant was one of the first operations of its size to commit to renewable energy, acting as a foundational customer for the Capital Wind Farm near Canberra, which helped bring that significant renewable energy project to fruition. The wind farm now services several other large industrial operations.

Scale indicators8 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• Victorian Desalination Plant: Large-scale seawater reverse osmosis plant in Victoria, Australia. Directly comparable as a major Australian desalination asset with similar SWRO technology, government off-take model, and IPART-equivalent regulatory framework, supplying bulk drinking water to a state water corporation.
• Adelaide Desalination Plant: 100 GL/year seawater desalination plant supplying SA Water, Adelaide. Direct peer operating SWRO technology under long-term contract with a state government water utility, comparable in scale, technology stack, and regulated off-take model to SDP.
• Perth Seawater Desalination Plant: Major seawater desalination plant in Kwinana, Western Australia, operated for the Water Corporation. Direct peer in Australian SWRO infrastructure, similar off-take model with a government utility, providing rainfall-independent supply to a major metropolitan area.

Broad incumbents

• Veolia Water Technologies: Global water and wastewater treatment major. Broad incumbent in desalination and water infrastructure; SDP's operations and maintenance partner, and a global reference for SWRO engineering, procurement, and operations at scale.
• Suez Water Technologies & Solutions: Global water treatment and desalination operator. Broad incumbent providing SWRO technology and plant operation services globally, directly comparable as a potential peer operator for large-scale desalination infrastructure.
• Acciona Agua: Major global desalination and water treatment EPC and operator. Operates large-scale SWRO plants globally (e.g., Tampa Bay), directly comparable as a peer operator and technology provider in the SWRO infrastructure segment.

Emerging players

• IDE Technologies: Israel-based desalination technology specialist behind the Sorek plant (world's largest SWRO). Comparable as a pure-play SWRO technology provider with large-scale plant references and innovation in membrane and energy recovery systems relevant to SDP.

Regional players

• Carlsbad Desalination Plant (Poseidon Water): Large-scale SWRO plant in California, US, supplying San Diego County Water Authority. Comparable in scale (~50 million gallons/day), technology (SWRO with energy recovery), and contract structure (long-term water purchase agreement with a regional water authority).

Others

• Sydney Water: NSW state-owned water utility and SDP's sole customer. Critical ecosystem participant — SDP's revenue and operations are entirely dependent on Sydney Water's production requests and tariff framework.
• Morrison & Co (Utilities Trust of Australia manager): Infrastructure investment manager of UTA, SDP's current owner. Comparable as a peer investor/asset manager in core Australian water infrastructure, providing context for SDP's institutional ownership and likely exit/portfolio pathways.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Sydney Desalination Plant