General Electric Co., the world's biggest provider of energy equipment and services, will boost research spending to grab more of an estimated $5 billion market to filter and recondition water for utilities and governments, its chief executive said on Thursday night at GE's management-training center in Crotonville, New York. “We think it's going to be a great business not only in the US but in China,” where much of the country has limited access to water, Chief Executive Jeffrey Immelt told global customers. GE plans to bolster research and technology development at the water unit by 50 percent in the next two or three years and considers wastewater and reuse as the “biggest opportunities” for growth, Steve Bolze, who oversees the water and power equipment units for the GE Energy business, said in an interview at the event. GE doesn't disclose the unit's spending target. Part of the spending includes new research centers in Singapore and Saudi Arabia as the company sells its water treatment products to utilities and municipalities. GE is building a S$150 million ($108 million) research center for water in Singapore. GE Energy Infrastructure, which includes the water division, provided $38.6 billion of the parent company's $182.5 billion in sales last year. Meanwhile, as the Middle East grapples with growing demand for sustainable supplies of clean water, water reuse and desalination have become an increasingly critical strategy. GE will showcase its advanced water reuse and desalination solutions at this week's International Desalination Association (IDA) World Congress 2009, underscoring its commitment to help address the region's water challenges. More than 70 percent of wastewater is reused in many countries in the region, while the set goal for Abu Dhabi is 100 percent wastewater reuse by 2015. The water reuse market in Saudi Arabia is expected to be worth $3.4 billion between 2009 and 2016, making it the third largest water reuse market in the world. “No part of the world knows more intimately than the Middle East the importance of an adequate, sustainable water supply, both for daily living and economic development,” said Steve Watzeck, president of engineered systems - water and process technologies for GE Power & Water. “GE's advanced technology solutions, strong local presence and commitment to the region can help governments and industries in Middle East effectively address their most difficult water challenges.”
