# Water: Extraction

From tube wells to membranes: how we get water out

Source page: https://www.materialinsights.org/commodities/water/extraction/

What this tab covers How it is mined, drilled or grown, and processed into a tradeable form: the main methods compared, their unit economics, by-products, and the companies that do this work globally and in India.

Water is taken from rivers and reservoirs, pumped from aquifers, made from seawater or brackish water by desalination, or recovered from treated wastewater. Desalinated water still supplies under 1% of world withdrawals, though about 3.5% in the Middle East and North Africa (IEA). Membranes now make up more than 80% of desalination capacity. In India groundwater dominates: wells drew 247 bcm in 2025, 87% of it for irrigation (CGWB). Energy needs vary widely. Gravity-fed surface water needs almost none, conventional treatment about 0.2 kWh/m³, and seawater reverse osmosis about 4 kWh/m³ (IFI TWG 2020).

Fresh water reaches users by five main routes. Surface water from rivers and reservoirs is the cheapest where gravity can move it. Groundwater from wells supplies farms and towns that lack reliable surface water, and is the main source in India. Seawater and brackish-water desalination, mostly by reverse osmosis, supplies coastal cities with little rain, above all in the Gulf. Thermal desalination survives where cheap waste heat or fuel is available. Treated wastewater is reused for industry, irrigation and, in a few cities, drinking. Energy use rises steeply along this list, from near zero for gravity-fed supply to several kWh per cubic metre for seawater.

#### Methods compared

| Method | Share of supply | Typical scale | Recovery / efficiency | By-products | Unit cost |
|---|---|---|---|---|---|
| **Surface water: dams, barrages and canals** | not published globally; most of the non-groundwater share of withdrawals | China South-North middle route: 1,232 km, over 80 billion m³ moved in 12 years, about 118 million people served (CGTN 2026) | large losses to evaporation and seepage in open canals (not quantified in sources reviewed); India projected 50 bcm of evaporation losses in 2025 (NCIWRD) | Hydropower, flood control | energy 0 kWh/m³ for gravity supply; about 0.79 kWh/m³ for pumped conveyance over 200 km or more (IFI TWG 2020) |
| **Groundwater: tube wells and boreholes** | India: 247 bcm extracted in 2025, 60.6% of the extractable resource of 408 bcm (CGWB 2025) | India has 6,762 assessment units; 10.8% are over-exploited and 3.0% critical (CGWB 2025) | n/a | n/a | energy depends on lift height: no default exists (IFI TWG assumes 70% pump efficiency); farm power is often subsidised in India |
| **Seawater reverse osmosis (SWRO)** | membranes are over 80% of global desalination capacity and over 60% in MENA; desalination is under 1% of world withdrawals (IEA) | largest plants about 1 million m³/day; IDE Technologies has built nearly 500 desalination and treatment plants with over 6 million m³/day of capacity (IEA; IDE 2025) | about 1.5 m³ of brine per m³ of fresh water across all desalination plants (calculated from Jones et al. 2019: about 142 million m³/day of brine against 95 million m³/day of product) | Concentrated brine (disposal problem) | energy 2.5-6 kWh/m³ including pre-treatment and pumping (IEA); IFI default 4.0 kWh/m³ |
| **Thermal desalination (multi-stage flash and multi-effect distillation)** | under 20% of global desalination capacity and under 40% in MENA (implied by membrane shares); the last major new thermal plant in the region opened in Qatar in 2018 (IEA) | n/a | n/a | Hot brine | core process heat about 250 MJ/m³, up to ten times reverse osmosis, plus 2-4 kWh/m³ of electricity (IEA) |
| **Wastewater treatment and reuse** | not quantified consistently in sources reviewed | Veolia connects 97 million people to wastewater systems; Suez serves 36 million with sanitation (company reports, 2025) | n/a | Biogas, sludge, recovered nutrients | not in sources reviewed; IFI TWG has deferred default wastewater energy factors |

#### How each method works
**Surface water: dams, barrages and canals**

Rivers are dammed or diverted into canals and reservoirs, then treated if needed and delivered by gravity or pumps. Storage smooths seasonal flows such as the monsoon or snowmelt. Inter-basin transfers move water hundreds of kilometres between catchments.

Cheapest at scale; dams displace people and ecosystems, and supply fails in multi-year droughts.
 CGTN (Aug 2026); IFI TWG AHSA-004 (2020); Ministry of Jal Shakti (2022) **Groundwater: tube wells and boreholes**

Electric or diesel pumps lift water from aquifers, from a few metres to hundreds of metres down. Supply is on demand and decentralised, so millions of farmers pump independently. Recharge comes from rain, rivers and irrigation return flows.

Reliable and drought-buffering; easy to over-pump, and wells deepen as water tables fall; arsenic, fluoride and nitrate contamination in places.
 CGWB Dynamic Ground Water Resources Assessment 2025; IFI TWG AHSA-004 (2020) **Seawater reverse osmosis (SWRO)**

Seawater is filtered and pumped at high pressure through semi-permeable membranes that hold back salt. Energy-recovery devices capture pressure from the brine. The product is remineralised and disinfected before entering the network.

Drought-proof supply for coastal cities; energy-intensive, and brine harms marine life if poorly dispersed.
 IEA 'Wired for water'; IFI TWG AHSA-004 (2020); IDE Technologies (May 2025); Jones et al. (2019), Science of the Total Environment **Thermal desalination (multi-stage flash and multi-effect distillation)**

Seawater is boiled or flashed into vapour in a series of chambers at falling pressure, and the vapour condenses as fresh water. Plants are often paired with power stations that supply waste steam.

Robust with very salty, warm Gulf water; much higher energy use, so being replaced by RO.
 IEA 'Wired for water' **Wastewater treatment and reuse**

Sewage is treated biologically, then filtered by membranes and disinfected for reuse in industry, irrigation or, in a few cities, as drinking water. Sludge can be digested to make biogas.

Local, drought-proof supply that cuts pollution; public acceptance and methane leaks are concerns.
 Veolia (2025); Suez (2025); IFI TWG AHSA-004 (2020) Unit economics are indicative ranges from the sources named; costs vary widely by deposit, region and year.

#### Who does it: global

| Company | Country | Activity | Volume | Year | Source |
|---|---|---|---|---|---|
| **Veolia Environnement** Group revenue EUR 44.4 billion in 2025; water revenue grew 3.5% organically. | France | water, wastewater, waste and energy services; Water Technologies | 110 million people supplied with drinking water | 2025 | [Veolia in brief; 2025 results (via Smart Water Magazine, Feb 2026)](https://www.veolia.com/en/veolia-group/veolia-in-brief) |
| **Suez** Revenue EUR 9.5 billion in 2025; 46 million people under CSRD rules. Unlisted since 2022, owned by an investor consortium. | France | water and waste services, desalination and treatment | 67 million people supplied with drinking water | 2025 | [Suez group key figures 2025](https://www.suez.com/en/about-us/group) |
| **American Water Works** Regulated revenue USD 4,723 million (92% of total) in 2025; 10-year capital plan USD 46-48 billion. | US | regulated water and wastewater utility | 14 million people served | 2025 | [American Water Works Form 10-K FY2025](https://www.sec.gov/Archives/edgar/data/1410636/000141063626000034/awk-20251231.htm) |
| **United Utilities** Revenue GBP 2,616 million; RCV GBP 16.5 billion; AMP8 investment raised to about GBP 11.5 billion. | UK | regulated water and wastewater utility for North West England | 5.6 million domestic customers | FY2025/26 | [United Utilities 2025/26 preliminary results (30 Apr 2026)](https://www.unitedutilities.com/globalassets/documents/corporate-documents/2025-26-preliminary-full-year-results-rns-final.pdf) |
| **Xylem** Physical volume not published; 2026 revenue guidance USD 9.1-9.2 billion. | US | pumps, meters, treatment and analytics equipment | not published | 2025 | [Xylem Q4 and full-year 2025 results (20 Feb 2026, via Impeller.net)](https://impeller.net/?p=132321) |
| **Ecolab** Volume not published; about USD 16 billion annual sales; says it helped customers save 245 billion gallons of water in 2025. | US | industrial water treatment chemicals and services | not published | 2025 | [Ecolab 2026 impact release (12 May 2026)](https://s204.q4cdn.com/218790897/files/doc_news/Ecolab-Delivers-Strong-Performance-and-Impact-2026.pdf) |
| **IDE Technologies** Private. Cumulative: nearly 500 plants in 40 countries with over 6 million m³/day of capacity built; annual output not published. | Israel | desalination plant design, build and operation | not published | 2025 | [IDE Technologies 60th anniversary release (Business Wire, May 2025)](https://www.businesswire.com/news/home/20250506286539/en/IDE-Technologies-Celebrates-Sixty-Years-of-Innovative-Water-Treatment-Solutions) |
| **Acciona (water division)** Group capacity not published in source; completed Shuqaiq 4 desalination plant in Saudi Arabia, to serve 3.5 million people. | Spain | desalination and treatment plants (EPC and operation) | not published | 2025 | [Smart Water Magazine, Acciona water milestones 2025 (Mar 2026)](https://smartwatermagazine.com/news/acciona/accionas-water-milestones-2025-sustainable-water-solutions-transform-world) |

#### Who does it: India

| Company | Country | Activity | Volume | Year | Source |
|---|---|---|---|---|---|
| **VA Tech Wabag** Volume not published; consolidated revenue Rs 3,944 crore and PAT Rs 370.5 crore; order book Rs 17,200 crore including framework contracts. | India | EPC and O&M of water, wastewater and desalination plants | not published | FY2026 | [Wabag FY26 results (Construction World, May 2026)](https://www.constructionworld.in/amp/policy-updates-and-economic-news/wabag-reports-profitable-growth-and-strong-order-book-in-fy26/92150) |
| **Ion Exchange (India)** Volume not published; consolidated revenue Rs 2,914.8 crore, PAT Rs 143.2 crore; engineering order book Rs 2,643 crore (Mar 2026). | India | water treatment plants, resins, membranes and chemicals | not published | FY2026 | [Ion Exchange Q4 FY26 results (Multibagg, Jul 2026)](https://www.multibagg.ai/market-pulse/articles/ion-exchange-q4-fy26-results-cmresc0ha001jnp0jjqlmiw44) |
| **Bangalore Water Supply and Sewerage Board (BWSSB)** Volume not published in source; operating costs about Rs 200 crore a month against revenue of about Rs 120 crore before the 2025 tariff rise, the first in 11 years. | India | state-owned city utility: Cauvery water supply and sewerage for Bengaluru | not published | 2025 | [Deccan Herald (10 Apr 2025)](https://www.deccanherald.com/amp/story/india%2Fkarnataka%2Fbengaluru%2Fbengalureans-will-now-have-to-shell-more-for-water-bills-rates-revised-after-11-yrs-3486983) |

India is the world's largest user of fresh water (647.5 km³ in 2022, FAO) but has few listed water utilities: supply is run by state boards, municipal bodies and farmers' own wells. Listed exposure is mainly through engineering and equipment firms (Wabag, Ion Exchange) and pump and pipe makers. The Jal Jeevan Mission is the main public spending programme for rural taps.

## Other sections

- [Summary](https://www.materialinsights.org/commodities/water/index.md)
- [Overview](https://www.materialinsights.org/commodities/water/overview/index.md)
- [Correlation](https://www.materialinsights.org/commodities/water/correlation/index.md)
- [Production](https://www.materialinsights.org/commodities/water/production/index.md)
- [Stocks](https://www.materialinsights.org/commodities/water/stocks/index.md)
- [Cycles](https://www.materialinsights.org/commodities/water/cycles/index.md)
- [Trading](https://www.materialinsights.org/commodities/water/trading/index.md)
- [Movement](https://www.materialinsights.org/commodities/water/movement/index.md)
- [Criticality](https://www.materialinsights.org/commodities/water/criticality/index.md)
- [Characteristics](https://www.materialinsights.org/commodities/water/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/commodities/water/emissions/index.md)
- [Relationships](https://www.materialinsights.org/commodities/water/links/index.md)