Potential answer to scourge of red tide in UAE



ABU DHABI // After waves of marine algae hit the UAE with a devastating impact last year, scientists have been trying to come up with a way to protect the country's waters from another siege of "red tide". And they believe they could have a solution. At a cost of Dh8 million (US$2.16m), it doesn't come cheap. But, if it works, it would be worth every dirham. With the blight thought to have cost desalination plants hundreds of thousands of dirhams.
The answer, they hope, will lie with a system used to clean ballast water on ships, a technology being adapted to work on land. Testing of a pilot programme will begin this summer off the shores of Abu Dhabi to see whether the system, developed in Japan, can be used as a contingency tool to limit the damage of harmful algal blooms. The idea was conceived in October last year as the east coast was recovering from possibly the worst algal bloom event in the country's history.
Developed by Hitachi Plant Technologies and Mitsubishi Heavy Industries, the method was showcased to officials from the Environment Agency-Abu Dhabi (EAD) who were on an official visit to Japan. "It could be an answer," said Dr Thabit Zahran al Abdessalaam, EAD's director of biodiversity. In the event of another outbreak of red tide of the same magnitude, the UAE needs to protect its desalination plants, he said.
The country depends on desalination plants for more than 90 per cent of its domestic water supply. The algal bloom from August 2008 through March 2009, which hit Fujairah and Khor Fakkan particularly severely, is commonly called red tide because it turns water a dark blood reed. It caused disruptions in desalination plants on the east coast, with production in some plants decreasing by up to 40 per cent due to equipment failures.
The red tide is estimated to have caused losses of US$100,000 a day for industry, according to the Abu Dhabi Water Resources Master Plan. It also killed hundreds of tonnes of fish, whose rotting corpses fouled beaches and hurt tourism, and suffocated significant portions of coral reefs. In order to keep balanced, ships take up a certain amount of ballast water at the start of a voyage. International regulations require vessels to treat that water before discharging it back at sea at the end of a journey. This is done so that bacteria, algae and marine creatures inhabiting a certain area are not spread to other parts of the ocean.
EAD is investing in adapting the system for a land-based device. A machine capable of treating 400 tonnes of water per hour will be tested in Abu Dhabi in the summer. "The technology has been used in ships for a few years but this application has never been tried anywhere" on land, Dr al Abdessalaam said. The system works with a process called "flocculation", in which chemicals are used to clump together bacteria, algae, sediment and other pollutants, which then fall and settle on the bottom.
The intake of water is also treated with magnetic power which mixes with the lumps of pollutants. The liquid is then run through a separator which extracts the flocks from the rest of the liquid. The flocks, which have the consistency of sludge, are removed. EAD will be testing the pilot device at a yet-to-be-determined location off the shores of Mussafah where there are high concentrations of algae in the seawater in summer.
The device is expected to arrive in Abu Dhabi by the beginning of July. It will be tested over a year to determine its effectiveness. René Hoeijmakers, a director at Royal Haskoning, an international engineering and environmental consultancy which has an office in Dubai, said that one issue that should be considered is cost. Both ballast water and desalination plant intake represent challenges, he said. A ballast water-treatment system has to be very compact, at no more than 2,000 cubic metres per hour, but a system for a desalination plant needs to be capable of handling 50,000 cubic metres per hour.
vtodorova@thenational.ae

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Date started:+2018

Founders:+Charaf El Mansouri, Nisma Benani, Leah Howe

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Investors:+Convivialite Ventures, BY Partners, Shorooq Partners, L& Ventures, Flat6Labs

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Investment stage: Pre-series B
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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