Water Treatment Outsourcing Agreement With GE Provides Italy’s Yara S.p.A. With Secure Water Supply, Cost Savings

An $18 million outsourcing agreement and facility upgrade for Yara S.p.A.’s Ferrara, Italy, plant with industrial water treatment leader GE is helping meet increasing customer demands for profitability and reliability. The plant in Ferrara supplies ammonia and urea liquids fertilizers to agricultural markets, which are growing strongly. But while production of these products requires copious amounts of clean water, the plant must rely on brackish, low-quality surface water sources.

Yara S.p.A., a unit of Yara International ASA, world leader in mineral fertilizers, outsourced its Ferrara water treatment operations to GE in 2005 to reduce costs, increase reliability and focus on its main businesses. With the recent contract expansion, GE will continue to build, own and operate the water treatment plant with onsite GE personnel through 2020. The facility currently produces up to 320 m 3 /hr of demineralized water using two proprietary GE technologies: brackish water reverse osmosis filtration and electrodeionization.

“The arrangement we have with GE enables us to capitalize on more favorable market conditions, which can be fleeting. We are confident we can meet the strong demands for fertilizers at acceptable margins because we can find alternative sources of water, and it also gives us substantial cost savings,” said Frank De Vogelaere, plant manager, Yara’s Ferrara, Italy, plant. “The cost savings come in two ways: we don’t have to buy expensive demineralized water from an outside supplier, and we have avoided production losses caused by low-quality water. Our expanding activities with GE are a direct result of GE’s performance over the years, and thus we have evolved out of a traditional supplier-vendor relationship into a more effective collaboration.”