Innovations in global

desalination

Company Profile
Aqualyng is a global leader in
seawater desalination using
reverse osmosis technology.
With competitive advantage gained
via our proprietary technologies
and state-of-the-art products &
services, we apply our engineering,
development, construction
management, and operations
& maintenance capabilities to
produce desalinated water when
and where it is most needed
across the globe.
2
Over the past decade, Aqualyng has
built and operated desalination plants
in 7countries around the world. Our
technology solutions and modular
desalination water systems
have brought about cost efficiencies
and reduced assembly times for plants
in the GCC, Africa, and China. By applying
some of the most advanced engineering
know-how in the industry, Aqualyng’s
team of industry professionals are
dedicated to helping communities,
businesses and industries around
the world overcome water shortages.
3

1989 Bjørn Lyng unveils the Anfi del Mar tourist resort in Gran Canaria

1992 The seed of Aqualyng is sown at Anfi del Mar

1995 Aqualyng is founded in the Canary Islands

1998 Installation of the first commercial desalination plant at Anfi Del Mar

1999 Bjørn Lyng registers Lyng Agua S.L. in Gran Canaria

2002 Aqualyng AS, Aqualyng›s parent company, establishes itself permanently in Vanvikan, Norway

2004 Aqualyng is awarded the prestigious ‹Innovation award› by DNB

2006 The company takes the decision to focus on Build Own Operate desalination projects as a primary business activity

2007 Aqualyng established itself in Dubai

2008 The company takes initial strides into the lucrative Chinese market

2008 Aqualyng is voted the No.2 desalination company in the world

2010 Aqualyng starts construction of 50,000m3/day BOO project in Caofeidian, China

History
Aqualyng was founded as a Lyng
Group company. The Lyng Group is
a renowned Norwegian industrial
conglomerate working across
sectors in areas as diverse as
electronics, energy, and offshore
drilling. The company was the
brainchild of noted Norwegian
industrialist, Mr. Bjørn Lyng, who
started Aqualyng to serve water
needs at the Anfi del Mar hotel
resort which he had developed
in the Canary Islands in the early
1990s. Aqualyng is today owned
by Staur Holding AS, The Lyng
Group AS, Aqua Venture AS, Pareto
and CLSA Capital Partners.
Aqualyng has historically been a
provider of advanced technology
energy recovery equipment for
desalination plants. Today, the company
is focused on not just selling this
equipment but selling water produced
by building, owning, and operating
desalination plants employing Aqualyng
equipment and technology.
 4

Aqualyng sets itself apart

in the desalination industry
by offering our clientele
a wealth of business advantages.

Our Business Idea

The Aqualyng Business Vision
is to bring high efficiency, low
life-cycle cost, water desalination
solutions to places far and
wide around the world.

In addition to our Fast Water product

offerings, we are seeking to sell water
under long term contracts, such as
BOO and BOOT contract structures,
to bulk consumers.
5 Our Business Idea
Proven, Patented Technologies
We have been installing desalination
plants with our own technology since
1998. Our technological innovations
and system design are carefully tested
through multiple installations, backed
up by test results that are unmatched
in the industry.
Project Development
Capabilities
With the renewed vision of the
company to participate in water
industry privatization initiatives around
the world and to sell water under long
term contracts such as in BOO/BOOT
projects, our project development team
is supported by the company’s in-house
engineering, construction management,
and O&M capabilities to devise and
implement customized solutions
fit to each consumer’s purpose and
consumption parameters.
Strength & Flexibility
The Aqualyng family comprises
top desalination experts from around
the world. Our team has the flexibility
and inventiveness to tackle minute
demands and enter regions sometimes
eschewed by mega corporations,
while maintaining the strength,
structural capabilities and logistical
resources to satisfy the most
exhaustive client requirements.
Proprietary Energy-saving Device
Aqualyng is currently the only
developer of desalination projects
with its own patented energy
recovery system, The Recuperator.
Unlike other suppliers who depend
on 3rd party energy recovery devices,
we have complete control over
the process and guarantee record
low-energy consumption with
significantly reduced costs.
An Experienced Team
Aqualyng prides itself on having sought
out and attracted talented individuals
to help us build an in-house team
capable to meet our high targets.

The Water Sales Business
Aqualyng is active in
identifying and pursuing
opportunities to invest
shareholder capital in desalination
plants employing the company’s
own equipmentand proprietary
technologies. To this end, the
company’s Project Development
team targets sales of product
water produced utilizing the
company’s patented technologies,
via BOO (Build, Own, and Operate)
contractual structures, under long
term water purchase agreements
with creditworthy off-takers.
The team’s geographical focus spans
all five continents, targeting
opportunities to form consortia with
equity partners and contractors best
suited for a given prospect. Whereas
the company had traditionally been
regarded as a provider of high quality
desalination equipment employing
seawater reverse osmosis technology,
the company’s renewed focus is to sell
not just the equipment, but also the
product water.
Having assembled a committed
in-house technical team of seasoned
veterans, with focus on technological
advancement and R&D as well as plant
design and operations, Aqualyng is able
to leverage its superior understanding
of the core technology to devise
customized solutions around each
project’s unique set of requirements.
Aqualyng is today able to provide
equity, bring in partner equity on
a project by project basis, and to
arrange third-party financing for
projects in the $50MM to $150MM
range. Whereas on smaller projects
Aqualyng can take the role of the EPC
contractor, on medium to larger size
6
projects, Aqualyng employs turnkey
EPC contractors on a case by case basis
to manage construction period risks.
Following construction, during
the commercial operations period,
Aqualyng’s operations and maintenance
group, provides technical services
including inventory management,
maintenance planning, and long term
parts & services supply to the company’s
operating feet. Centralizing the operations
management function across the feet
allows for better efficiency achieved
from improved maintenance and parts
inventory management.
7
Undoubtedly the main point
of difference between
our competitors and us.
The Recuperator:
Our Key Competitive Advantage
The Recuperator is an energy
recovery / work exchanger
patented and owned entirely
by Aqualyng (making us the
only water supplier in the world
with its own patented energy
recovery device).
A compact, tower-like structure,
there have been three generations
of the Recuperator over the years,
each building on the strengths of its
predecessor. Aqualyng’s R&D team is
passionate about introducing newer
features to. The Recuperator. There is
a forth generation Recuperator that
will be introduced soon. By allowing
waste energy recycling up to 98.5%,
The Recuperator significantly reduces
operating costs.
The Recuperator
Background
From the very beginning, Reverse
Osmosis Desalination has been focused
on the improvement and development
of the membrane elements, which are
considered the heart of the process.
The ultimate objective in the process
is to have membranes, in terms
of material and configuration,
that feature high productivity; high
salt rejection; and resistance to high
operating pressures, chemical products
and pollutants present in the
feed water.
The development of Aqualyng’s
system design technologies, together
with many years of experience in the
operation of RO systems, better
pre-treatment solutions and the use
of more efficient equipments and
better materials, have resulted in
a reduction of operating costs as well
as an incremental decrease in the
system life-cycle costs.
Workings
The Recuperator uses the saline reject
(brine) from the membranes
to pressurize pre-treated seawater
in a sequential process regulated by
the brine flow from the RO membranes.
The device consists of vertically
standing pairs of duplex stainless
steel chambers that work alternatively
in a compression-transfer and
decompression-discharge sequence.
Pre-treated seawater comes from
a pressurized feeding tank to keep
constant flow and pressure into
8
the system. The Recuperator allows
the pressurized brine to “recycle”
itsenergy back to the membranes
in conjunction with a booster
pump – the brine is replaced with
pretreated seawater at an
identical flow.
Remarkable Efficiencies
Via The Recuperator, Aqualyng has
brought high-effciency energy recovery
to projects in Taiwan, Oman, Egypt
and the Canary Islands. The latest
Recuperator installment is in a
50,000 m3/day plant currently
under construction in China.
9

Fast Water is an equally adept

solution to meeting temporary
as well as longer term water
supply needs.
Fast Water
Modular desalination solutions

Fast Water is a series of modular
water treatment plants employing
Reverse Osmosis (RO) technology.
The units are designed to produce
potable water at flow rates ranging
from 250m3/day to 1000m3/day.
This product suite offers an energy-
efficient, cost effective solution
catering to the water needs
of the Power, Construction, Oil & Gas,
Petrochemicals, Agriculture, Chemicals,
Mining & Minerals, Metal Processing,
Food & Beverage, Hotel & Tourism
and Water Bottling Industries.
Easy to transport, install and operate,
Fast Water is an equally adept solution
to temporary water supply needs and
water supply droughts in arid, desert
climates - giving harsh climates a vital,
refreshing boost. Compact and mobile,
Fast Water can be quickly transported
to various environments to service
different water needs.
Aqualyng looks after the
commissioning, installation, technical
assistance, regular servicing and
remote monitoring of Fast Water,
ensuring fresh water
– whenever, wherever.
Fast Water 10

Strength
• Optimally Sized
Fast Water’s compact dimensions allow
it to be delivered quickly and at short
notice via routine shipping methods.
• Flexible
The product’s fexible configuration
allows for a large range of
capacities,to meet wide ranging
client requirements.
• Easily Operable
Easy to install, easy to operate – Fast
Water is a no-fuss solution to several
industry requirements.
• High Purity Water
Fast Water systems remove not only
dissolved ions, but also bacteria,
pyrogens, organics, particles, colloids,
color & oxidizing agents up to 99.9%.
• Operationally Efficient
Fast Water is energy-efficient,
low-maintenance and cost-effective,
making it the ideal purchase for large
industries and mid-sized factories alike.
• Various Options
Units can be purchased or leased,
and the entire system can also be
monitored remotely. Further, clients
can choose between customized
and off-the-shelf units.
• Reliability
With a long history of successful
project involvement in the Canary
Islands and other developments based
around the world, Fast Water has the
credibility to deliver on its promises.
• Ready Availability
Through a well-coordinated
network of sub-suppliers and short
manufacturing lead times, Fast Water
can be delivered as and when customer
needs are identified

Fast Water’s compact size allows for quick and low cost shipping.

Key Components • Feed Water Pressure Pumps

Fast Water has several unique features
that give it a distinct edge in the
industrial water desalination space.
• Energy Recovery Device
• Chlorination / Dechlorination, Antiscalant
Dosing and Flocculant Dosing

• ORP / Conductivity / Flow / Pressure Instrumentation

• Cleaning & Flushing System

11
Aqualyng 50 000m3/day Build
Own Operate(BOO) desal plant
solving water challenges in
Caofeidian area.
Beginning 2010, Aqualyng China and
the Tangshan Caofeidian Infrastructure
Construction Investment Co. Ltd. (IIC)
set up a joint venture company to
construct and undertake the design,
operation, ownership and maintenance
of a 50,000 m3/day seawater
desalination plant in the Caofeidian
Industrial Zone. The project is the first
phase of a larger development with an
expected total size up to 400,000 m3/d.
The construction phase of the project
was kicked off March 15, 2010, and
the first phase 50 000m3/day plant is
scheduled for commercial operation Q3
2011. The product water will supply
the Caofeidian Industrial Zone 220
km east of Beijing, and is one of first
2 large scale desalination plants in
construction as foreign investment in
China. The plant is being constructed
by HZWT, a leading Chinese water
treatment contractor, and Aqualyng
is supplying its patented proprietary
energy recovery device, the
Recuperator, to the plant.
Aqualyng will operate the plant
during the 30 year term of the offtake
agreement as part of a joint venture
with IIC. IIC is wholly owned by the
local governing authority in Caofeidian
and the project enjoys strong
government support.
The growing Chinese market for
desalination has proven difficult for
foreign companies to enter, and it is a
source of pride that Aqualyng has been
able to develop this project based upon
a contractual framework that can serve
as a model for future BOO projects in
China. Key Information:
Fast Water
Key Information:
• RO desaliantion project, supplying
water to the Caofeidian Industrial
Development Zone, 220 km east
of Beijing
• Size Phase 1: 50 000 m3/day
• Type Of Contract: Build Own
Operate Transfer, 30 years
• Offtaker: Tangshan Caofeidian
Infrastructure Construction
Investment Co.
• Raw Water Quality: 36 000 TDS
• Product Water Quality: Chinese
drinking water standard
• Configuration: 5 * 10 000 m3/day
RO skids
• Through the WPC, the offtaker
guarantees to buy 90%
of produced water
• Aqualyng delivers patented ERD,
the Recuperator, to ensure lowest
possible energy consumption
• Commercial operation Q3 2011
www.aqualyng.com