California to Surpass Florida as Largest Market for Water Reuse

Bluefield Research presented new market forecasts regarding water reuse in the U.S. The data is based on a database of 607 currently planned reuse projects. According to the findings, municipal wastewater reuse capacity is expected to increase by 58% by 2026. CAPEX investment in reuse also is expected to total $11 billion between 2016 and 2026.

"Water scarcity continues to be the primary driver for water reuse implementation; the scaling roster of projects demonstrated in our semi-annual review highlights wider adoption by utilities going forward," said Erin Bonney Casey, senior analyst for Bluefield Research.

California and Florida account for 36% and 26%, respectively, of currently planned reuse capacity additions. Florida has the most installed reuse capacity to date with 6.3 million m3/d, because of its long commitment to reuse in order to improve water quality and guarantee adequate supply for its growing population, according to Bluefield's analysis.

"California is proving to be the greatest opportunity for reuse market growth, backed by $4.3 billion of planned activity, an improving regulatory environment and its well-documented drought," Bonney Casey said. "So far, projects have taken years to develop, but given the recent supply concerns, we anticipate a more streamlined process going forward, particularly for potable applications."

Four states—Florida, California, Colorado and Texas—make up 581, or 95%, of planned reuse projects in the U.S. Colorado released its first statewide water plan in November 2015, outlining 51 planned reuse projects. Potable reuse projects—direct and indirect—also are gaining momentum with 2.6 million m3/d in capacity additions, accounting for $2.9 billion investment in advanced treatment technology solutions.

"We expect the reuse pipeline to continue to grow as states continue to face drought conditions. Longer-term water planning cycles and regulation standardizing projects demonstrate greater support for the expansion of reuse systems and contribute to the growing pipeline of planned projects," Bonney Casey said. 

Source: Bluefield Research