degremont ra 2011 en

Committed together to water, a source of life

Through its subsidiaries, SUEZ ENVIRONNEMENT, currently supplies 91 million people with drinking water, and 63 million with wastewater treatment services. The Group provides 57 million people worldwide with waste collection services, and is firmly committed to waste recovery in all its forms. With 80,410 employees, SUEZ ENVIRONNEMENT reported annual revenue of 14.8 billion for 2011. Its major shareholder is GDF SUEZ, with 35.68% of share capital.

Degrmont is a wholly-owneD subsiDiary of sueZ enVironnement anD the worlDs leaDing water

treatment company.

for more than seVenty years, Degrmont has

been Designing, builDing, equipping, operating anD financing facilities that combine technical anD economic performance

with respect for natural anD urban enVironments.

Degrmont applies its extensiVe expertise to

supporting its public anD priVate sector customers with the most aDVanceD,

most appropriate, most reliable anD most afforDable solutions,

tailoreD to local resources anD conDitions.

strong Values

Be amBitious for DeGrmoNt/Commit with CouraGe/Create trust throuGh respeCt aND iNteGrity/proGress aND help others to proGress

contents

Key figures

Governance

pioNeeriNG sustaiNaBle water maNaGemeNt

Working with our stakeholders to create the water solutions of tomorrow

Jean-Louis Chaussade, Chief Executive Officer of SUEZ ENVIRONNEMENT

Boosting our international growth

Thierry Mallet, Chairman of Degrmont


Rmi Lantier, Chief Executive Officer of Degrmont

Areas of Activity and Expertise

Highlights of 2011

ComplemeNtary areas of aCtiVity

Capitalising on our global presence and seventy years of experience

Jacques Blein, Chief Operating Officer of Degrmont

The preferred partner of industry and local authorities

Customised production of drinking water

Innovative desalination processes

Municipal wastewater purification

Sludge treatment and processing

Industrial water cycle optimisation

a raNGe of proVeN solutioNs

Turnkey plant design and build

Operation, services and day-to-day/long-term support

Equipment and technologies that maximise plant efficiency

BOT contracts: from project design to funding

Innovation

Flagship products

CommitteD to the future

A responsible and dynamic approach

Protecting natural resources and environments

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1,584m in revenue for Degrmont in 2011,

including 119m for Ondeo IS14.5m invested in research and innovation 21.7 millioN people supplied with drinking water by our operations teams

24.4 millioN people supplied with wastewater treatment services 10,000 plants designed and built worldwide1 BillioN people served by a facility built by Degrmont 5,500 employees More than 70 years of international experience

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Key fiGures

GoVerNaNCeThe Executive Committee is the ideas development, consulting and decision-making body that ensures company strategy is implemented consistently and effectively. For cross-disciplinary issues, it is supported by the Business Units and Business/Activity departments responsible for delivering operational performance and for working closely with customers. The full spectrum of expertise and human resources is implemented as part of being Committed together to water, a source of life, and to ensuring that Degrmont continues to be an efficient, successful and innovative company.

Rmi LantierJacques BleinXavier BoulatClment de Villepin Samy BenoudizFranois BernsFrdric ClauxJos del CastilloFranois FvrierMarc Hauchecorne Pierre-Yves Pouliquen

Sabine RousClaudio TagninMichel Ulrich

Chief Executive OfficerChief Operating OfficerChief Finance Officer Director of Human Resources Executive Vice President in charge of IndustryExecutive Vice President in charge of Equipment BusinessExecutive Vice President in charge of BOT Business Executive Vice President in charge of Europe, Latin America & AfricaExecutive Vice President in charge of Middle East, India, Asia and PacificDirector of Processes and OrganisationExecutive Vice President in charge of Municipal Services Business and France AreaDirector of CommunicationExecutive Vice President in charge of Design & Build BusinessExecutive Vice President in charge of Melbourne

executive committee

Gabriel ToffaniGuillaume MizonRoch CherouxPierre-Yves PouliquenJean-Luc VenturaJos del Castillo Shyam Bhan Loc Voisin Pierre Pauliac Samy Benoudiz

Chief Executive Officer for the Latin America BUChief Executive Officer for the Asia BUChief Executive Officer for the Australia BUChief Executive Officer for the France D&B BUChief Executive Officer for the France Services BUChief Executive Officer for the Iberia & Africa BUChief Executive Officer for the India BU Chief Executive Officer for the Italy & Eurasia BUChief Executive Officer for the Middle East BUChief Executive Officer for the OIS Europe BU

regional business units

Tony Hargrave

Andrew ReedHubert Grienenberger

Chief Executive Officer for the 3W (Water & Wastewater) + Incineration BUChief Executive Officer for the Industrial Solutions BUChief Executive Officer for the 2D (Drying & Disinfection) BU

equipment business units

breakdown of revenue

France 23% International77%

number of employees by sector

Design and Build 2,002

Equipment 856

Services 1,836

BOT 129

Industry 653

analysis of revenue by business sector

analysis of revenue by region

%

%

%

americas 24%

europe 33%

africa4%

asia/oceania 30%

middle-east 9%

analysis of revenue by customer type

%

%

%

local authorities 80%

industry 20%

others (including bot + holding company) 3%

%

%

%

industry8%

equipment13%

operations and services 14%

Design & build62%

how did sueZ enVironnement handle the complex economic environment of 2011?

Jean-louis Chaussade. We continued to implement our long-term strategy of being a pure player in the water and waste industries, with a strong and selective presence in Europe and internationally. This strategy has once again demonstrated its value, because we have been able to deliver excellent operating performance, and both areas of activity have delivered solid performance.

how do you go about deploying this strategy?

J.-l. C. We believe that being efficient means being open and working with partners to build joint successes at every level of our business. We base our continued international growth on local partnerships that allow us to gain a much better understanding of the countries and regions in which we work.

4 pioneering sustainable water managementworking with our stakeholders to create the water solutions of tomorrow

So in China, for example, we have been working with the Chinese group New World since 1985. In terms of innovation, we are building partnerships with universities, industry and start-up companies to accelerate the pace at which we develop new solutions. At local level, we are committed to meaningful dialogue with all stakeholders through sustained contact and discussion with our Foresight Advisory Council (FAC) and in our stakeholder sessions. Working with all our stakeholders to create the water solutions of tomorrow is our unifying thread for green growth.

how do you see the groups long-term challenges?

J.-l. C. The world develops through step changes. The first was the revolution in hygiene and public health at the end of the 19th century that marked the birth of our business. The second - urban comfort and convenience - came nearly a century later, and enabled our expansion. We are now experiencing a third step change: the increasing scarcity of resources. Our areas of activity are central to these challenges, and have the potential to be part of the solution. We want to help our customers to become leaders in environmental performance. Our ability to reinvent our areas of activity, our traditional markets and the ways in which we are rethinking our relationships with all stakeholders firmly establish us as a positive contributor to green growth.

more fromJean-louis chaussadechief executive officer of sueZ enVironnement

partnershipwe intend to partner even more closely with our customers to effectively bolster their environmental performance. the expertise, creativity and commercial energy of our teams is supporting this period of business transition in the field.

innovationinnovation is central to our ambition to protect resources, combat climate change, reduce pollution and promote a circular economy.

step changeas resources become increasingly scarce, the group is offering high value-added solutions based on synergies between energy and water, remote service delivery, sustainable infrastructure management and network performance.

how did the group and Degrmont perform in international markets in 2011?

thierry mallet. SUEZ ENVIRONNEMENT generated 28% of its revenue from international markets in 2011 and intends to increase this proportion to one-third. In the water sector, the Group has the benefit of a very strong base in Europe, but it also has a substantial presence on the continent of America, China, Australia, North Africa and the Middle East, all of which offer strong growth potential for future development. Degrmont already generates 77% of its revenue outside France through its presence on every continent. The company achieved some important successes in 2011, with particularly strong performance coming in the Czech Republic, Algeria, Brazil, China and Australia. Nevertheless, its performance was significantly impacted by delays on the Melbourne desalination plant construction site, which suffered from extremely damaging weather conditions and employee relations issues in 2011. By 28 June, physical progress on the site had reached 94%. Commissioning of the reverse osmosis plant began in May and desalinated water production began at the end of June.

what international market opportunities has the group identified for future years?

t. m. The markets in Europe are more mature, but our excellent results in North Africa and the Middle East encourage us to press ahead with growth and capitalise on those experimental models that have proved so successful. We are also well placed in growth countries like Australia, which offer the added benefit of being excellent laboratories for sustainable development. We are also committed to becoming a major player in the key emerging markets of the world, beginning with India and Brazil. This will require us to develop new models for these countries, which have significant requirements in terms of environmental services and, like other countries, are also having to cope with increasingly scarce resources.

against that background, how does the integration of ondeo is contribute to Degrmont?

t. m. This integration is absolutely logical, because the two companies are almost a perfect complementary fit. Ondeo IS brings substantial industrial expertise to the table, whilst Degrmont contributes its knowledge and experience of international markets.

more fromthierry malletchairman of Degrmont

melbournethis achievement is exceptional in terms of its size and scale: it is the largest of its type in australia and the worlds biggest water industry public-private partnership project.

new modelswe have developed new contractual models, including the algiers management contract, which was renewed in 2011.

industryin the developed countries of the world, industry now accounts for nearly three-quarters of all water consumption.

Boosting our international growth

We believe that this will lead to significant growth and a stronger presence for the company amongst industrial customers, which represent a fundamental challenge for both Degrmont and the Group. This challenge is one of the four priority strategic action areas identified by the Group, with an annual revenue growth target of 10% for industrial water services.

what do you see as the greatest strengths of Degrmont?

rmi lantier. The primary strength of Degrmont is that it provides a truly meaningful service that is essential to life. This fact is reflected on a day-to-day basis in our strong commitment to serving our customers and the exacting standards we apply to our operational performance.The breadth and diversity of our offer is our second major strength. We offer a range of solutions that provide an effective response to the enormous diversity of needs expressed by our customers.Our third strength is our global presence. We are simultaneously European, American, Asian and African, with local roots that go back a very long way in many cases. We know how to operate in all our countries, from Kazakhstan to Nigeria and Iraq to Mongolia. Degrmont is a global group of companies that has managed to retain its pioneering spirit.

what are the potential growth areas for Degrmont?

r. l. In a fast-changing world on a quest to find a more balanced way of capitalising on its resources, new geographical opportunities are opening up right in front of our eyes. To begin with, we are investing heavily in the industrial services market, which represents a dynamic source of growth, and in which we are the standard bearers for the industrial ambitions of SUEZ ENVIRONNEMENT in the water sector. The oil, gas, energy, mining, paper making and fine chemicals markets also offer significant opportunities that we can respond to with customised solutions, from mobile units to specialised high-technology equipment and operational services.

Then theres the water treatment equipment market, which offers us another opportunity to increase our presence and extend our range of services. Lastly, we are continuing to develop our policy of partnership with local stakeholders in the municipal market, in exactly the same way as in the industrial market. The municipal market is a powerful opportunity for Group growth and expansion, and one that has brought us considerable success in our BOT, Services and D&B activities.

how would you describe the Degrmont commitment to its customers?

r. l. Our seventy years of experience and more than 10,000 customer relationships make us a substantial and reliable partner with recognised expertise. Listening to our customers is absolutely essential for progress and innovation. We provide each of them with an attentive response specific to their individual needs. It is this level of commitment that allows us to contribute to establishing our customers as leaders in water resource management and environmental performance. And thats precisely the meaning of our mission: Committed together to water, a source of life.

6pioneering sustainable water management


more fromrmi lantierchief executive officer of Degrmont

innovationresearch and the implementation of innovative and competitive solutions in partnership with our customers are cornerstones of the Degrmont growth strategy.

excellenceDegrmont puts continuous improvement at the heart of its business processes, and translates them into improvement measures that deliver continually enhanced fulfilment of its quality, lead time and cost commitments.

competitivenesseconomic optimisation of the solutions we offer is a central focus for Degrmont in meeting the budgetary restrictions of its customers.

iNteGrateD areas of aCtiVity

bot: build, operate, transferWhether it is signed with a local authority, a province, a nation state or an industrial company, a BOT contract involves Degrmont in every stage of the project, from funding to building and operation. For these contracts, Degrmont is represented by a company dedicated solely to the project. In return, the customer pays a fee covering the operating costs and depreciation on the capital invested. At the end of the contract, the facility is transferred to the customer.

industryFrom resource to re-use, Degrmont responds to the individual needs of industrial customers for water resource protection, process water production, industrial effluent purification and industrial sludge processing. Degrmont supports its industrial customers in managing every stage of the industrial water cycle to meet a series of challenges: optimising water treatment installations to gain competitive advantage, securing water supply and improving the reliability of industrial production, reducing environmental impacts and complying with increasingly stringent environmental standards.

Its expertise and complementary areas of activity allow Degrmont to strengthen its position as a global pioneer in water treatment.

Design and build Carrying out both project management and water treatment expertise, Degrmont takes responsibility for every stage in the process of designing and building new units and extending or refurbishing existing facilities, from the choice of process and site location to purchasing management, site supervision, equipment assembly and commissioning. In this way, Degrmont offers future operators user-friendly plants and ensures that new facilities blend seamlessly into their environment.

operations and services From day-to-day plant management to proactive recommendation of new services (supply of spare parts, refurbishment and training), Degrmont contributes at each and every stage. Its experts are involved in all the preliminary project phases to ensure that the needs of future operators are fully addressed. This joint expertise as both builder and operator is the customers guarantee of reliability and performance.

equipment and technologiesDegrmont offers equipment packages designed to improve and/or diversify the performance of existing facilities. Drying, sludge incineration, water disinfection using ozone and UV treatments, ultrafiltration, reverse osmosis, ion exchange, industrial process water treatment, biological treatment and separation all these applications are the focus of Degrmonts expertise, delivered in conjunction with high-profile international names, such as Innoplana, Ozonia, Triogen, Aquasource, Infilco, Anderson and Water & Power Technologies.


iNteGrateD areas of aCtiVity

Degrmont offers its customers cost-optimised expertise tailored to economic and regional conditions.

proVeN expertise

Drinking water productionAs they are faced with serious difficulties in accessing water, developing countries are seeking reliable and affordable production solutions. At the same time, the industrialised world is setting new standards to improve comfort and public health. The diversity of technologies developed by Degrmont (sand filtration, flotation, ultrafiltration, etc.) offers major advantages in order to respond effectively to these multiple challenges, regardless of water resource origin and quality.

DesalinationAs part of combating water stress, Degrmont has developed technologies that can produce fresh water from seawater. As demand for water grows from domestic and industrial users, desalination offers an effective and proven alternative. Degrmont offers original and efficient processes at every stage of treatment, with particular emphasis on preliminary purification upstream of the reverse osmosis desalination stage. In practical terms, the preliminary purification stage governs the efficiency, reliability and durability of membrane-based systems.

municipal wastewater purification and re-useDegrmont technologies provide local authorities and industrial customers with the levels of public health and environmental safety required for full compliance with regulatory requirements. Customers can also opt for processes that enable purified wastewater to be re-used in agricultural, urban and industrial applications.

biosolids and sludge treatmentAs a by-product of wastewater treatment, sludge poses a major economic and environmental challenge. Better wastewater treatment processes have resulted in significantly higher quantities of sludge to be treated. Degrmont provides an effective response to this trend by offering a wide range of processes applicable to every stage of treatment, from digestion to thickening, dewatering, drying and incineration.

industrial water treatment and productionDegrmont supports its industrial customers in identifying and adopting the best solutions which meet their individual requirements in terms of drinking water production, process water production and effluent treatment. Degrmont and Ondeo IS offer a range of water production solutions that are 100% compatible with the requirements of even the most sensitive industries.

hiGhl iGhts10pioneering sustainable water management

proDuCtioN CapaCity tripleDDar es salaam, tanzaniaExtension of the Lower Ruvu drinking water production plant in Dar es Salaam. Working as part of a consortium with Kenyan civil engineers Spencon, Degrmont was awarded this 26 million contract to triple the treatment capacity of the existing plant from 90,000 cu. m per day to 270,000.

sustaiNaBle partNershipadelaide, australiaThe State of South Australia awarded the partnership formed by Degrmont, SUEZ ENVIRONNEMENT and Transfield Services the Alliance contract to operate and maintain the water and sanitation services for Adelaide and its surrounding area. This 10-year, 840 million contract will provide services to around 1.1 million residents, and covers six drinking water production plants, six water treatment plants, 16,000 km of pipelines and wastewater re-use systems.

eNViroNmeNtal performaNCenice, franceThe urban community of Nice Cte dAzur has renewed its contract with Degrmont to operate and maintain the Haliotis wastewater treatment plant for a further 10 years. This plant is one of the most efficient in France, and treats around 220,000 cu. m of wastewater every day. The 100 million contract also includes the development of a wastewater recycling system and carbon balance monitoring.

ultrapure waterohio, usaDegrmont has acquired Ameriwater, the US specialist in ultrapure water production systems, which provides the biomedical and industrial markets with cooling tower filters, reverse osmosis and deionisation systems, water filters and water softeners.

Coastal CoNserVatioNgozo, maltaThe Gozo plant now treats 80% of the islands wastewater. With a capacity of 60,000 cu. m per day, the plant occupies a 4-hectare site and contributes to reducing pollution in the Mediterranean, as well as serving 500,000 Population Equivalent.

You can find details of other 2011 highlights by visiting www.degremont.com

hiGhl iGhtsresourCe proteCtioN Doha west, qatarHaving won the design, build and 10-year operation contract for the Doha West wastewater treatment and recycling plant in 2005, Degrmont has now been appointed to extend the facility. This $50.5 million contract will boost plant capacity from 135,000 cu. m per day to 175,000.

loNG-term operatioNciudad Jurez, mexicoThe Ciudad Jurez water treatment plant operating contract has been extended by a further fifteen years. The water savings made will enable the city to remain self-sufficient in drinking water for the next thirty years, with a daily volume of 311,000 cu. m.

expert maNaGemeNt of the water CyCle punta pereira, uruguayDegrmont has won the 43 million contract to design and build the industrial water treatment, drinking water production and industrial wastewater demineralisation treatment facilities that will manage the industrial water cycle of the Montes del Plata paper pulp production plant. The plant capacity is 360,000 cu. m per day.

ethiCal poliCy aCCreDiteDcorporate As the first company in its industry to have been granted GoodCorporation certification in 2009, Degrmont has received a new certification in recognition not only of its ethical management of employees, suppliers and shareholders, but also of its environmental protection initiatives and contribution to the community.

maNaGemeNt system CertifiCatioNauditDegrmont is the first company in the Group to receive certification for its Design and Build activities right across the business, following an audit conducted in six of its entities: Degrmont Construction Nord, Degrmont Construction Sud, Degrmont France Assainissement, Degrmont Limited Inde, Degrmont Sudamrica and Degrmont SA.

iNNoVatiVe solutioN tianjin binhai, chinaDegrmont Technologies-Innoplana has signed a third major contract in China, and has also installed two Innodry 2E lines in the New Economic Area in the north-east of the country. The new lines will treat 200 tonnes of wet sludge from the surrounding regions four water treatment stations.


New CoNtraCtalgiers, algeriaThis design, build and commissioning contract covers phase 2 of the Baraki municipal wastewater treatment plant serving 900,000 Population Equivalent. The plant as a whole will serve 1.8 million Population Equivalent.

europeaN staNDarDs CompliaNCele havre, franceOfficial opening of Edelweiss, the new water treatment plant for Le Havre. With a capacity of 415,000 Population Equivalent, it meets European requirements for nitrogen and phosphorus treatment, enabling treated water to be discharged directly into the Seine estuary. This is the largest implementation in Europe of Cyclor, the compact wastewater treatment process that treats carbon, nitrogen and phosphorus pollutants.

eNerGy effiCieNCyinnovationThe Greenbass innovation from Degrmont has been adopted by two local authorities: Dijon in France and Tournus in Belgium. Nominated for the European Environmental Press Awards, this system optimises the most energy-hungry plant process - aeration - on the basis of fair energy use. By reducing energy consumption, it also reduces energy costs and the carbon footprint.

iNGeNious proCesspartnership

An innovative partnership agreement has been signed with the Swiss company Bucher Unipektin for the development and marketing of a new sludge dewatering solution known as Dehydris Twist. Applied to water treatment sludge, this automatic press system delivers higher dewatering quality than so-called traditional processes. maJor reNoVatioN

achres, france

Degrmont is currently contributing to the refurbishment of the biological treatment process in operation at the Seine aval municipal wastewater treatment plant in Achres. The plant capacity is 2.3 million cu. m per day, and the contract value is 165 million.

smaller eNViroNmeNtal footpriNtangers, franceDegrmont and Lyonnaise des Eaux have won the 6-year contract to manage the La Baumette plant: the contract value is nearly 20 million. This water treatment plant processes the wastewater generated by local industries and residents (285,000 Population Equivalent). The plant will be operated by a joint venture company called Valomaine, which has a target to reduce the plants environmental footprint by 1,100 tonnes of carbon equivalent per year.

Quality assureDprague, czech republicIn responding to European Union targets requiring water quality to be reinstated in a particularly sensitive area before 2015, the City of Prague has awarded Degrmont and other consortium members (SMP, Hochtief and WTE) a 257 million contract to design, build and operate the capitals wastewater treatment plant. With a daily treatment capacity of 350,000 cu. m, it will serve 1.1 million Population Equivalent.

ComBiNiNG forCes internationalOndeo Industrial Solutions, the specialist in industrial water cycle optimisation and management, is now a wholly-owned subsidiary of Degrmont.

teChNoloGiCal prowessmelbourne, australiaBuilding work has been completed on the Melbourne desalination plant project, which began in 2009 and is designed to provide drinking water for one-third of the citys residents (4 million people with a plant capacity of 450,000 cu. m per day).

eNerGy reCoVeryadeje arona, canary islesThe Canary Isles government has awarded the contract for phase two of its Adeje Arona water treatment plant construction project to the consortium of Degrmont, Satocan and Canaragua. The plant will use a membrane bioreactor treatment process to maintain bathing water quality. The biogas produced by this new 413,000 Population Equivalent plant will be used to generate electricity.

syNerGy of expertisewuhan, chinaThe Wuhan Sino French company has been formed to manage the 30-year build and operate contract for the wastewater treatment plant of the Wuhan industrial and chemicals site. This joint venture involves Sino French Water Development (SUEZ ENVIRONNEMENT), Wuhan Chemical Industry Park, Degrmont and Shanghai Chemical Industry Park. The plant capacity is 60,000 cu. m per day.

GhG measuremeNtnew systemThe Lifecarbontool website designed by Degrmont is now available online. It uses the carbon calculator developed in conjunction with PricewaterhouseCoopers and is designed to enable local authorities and industrial customers to evaluate the greenhouse gas emissions generated by their water treatment plants.

suCCess iN the freNCh oVerseas DepartmeNtscontractsAt Matiti in French Guiana, the Communaut de Communes du Centre Littoral authority has awarded the Degrmont France Rgions-Sogea consortium a 16.2 million contract to build a drinking water production plant with a capacity of 10 million m per year. At Leblond, the same consortium will build a water treatment plant with a capacity of 90,000 Population Equivalent under a contract worth 21 million. In Guadeloupe, Degrmont France Assainissement has won the contract to provide the wastewater treatment plant at Baie-Mahault.


14

Degrmont responds to the high expectations of its customers by providing them with increasingly innovative solutions and expertise. its long-term support and assistance is provided in a context of close partnership and experience sharing.

what is your view of Degrmonts achievements in 2011?

Jacques Blein. 2011 was marked by a number of major international events and a serious economic crisis that continues to affect nation states, the public, the global financial system and a few of our customers. Some have already put in place precautionary measures to guard against any economic slowdown. In this difficult environment, we have once again demonstrated our ability to secure renewal of our contracts and win new business in our markets thanks to the suitability and competitiveness of our bids and the quality of the services we provide. Damaging weather conditions and industrial relations issues together resulted in a 6-month delay in the Melbourne desalination plant construction schedule. Nevertheless, our teams spared no effort to achieve the lead times set, and the new plant will be operating at full capacity by the end of 2012.We have therefore had a difficult year of transition and I would like to take this opportunity to pay a tribute to the commitment shown by our employees, who have effectively ensured continuity of our business despite all these difficulties.

what is Degrmonts role as a water treatment partner?

J. B. I see partnership as a fundamental and cross-functional factor, because it is absolutely central to everything we do. In practical terms, the ability to draw on the expertise of our partners extends our own skills set and ability to compete in the market. The complementary nature of our areas of activity therefore makes it possible to develop products and services that provide the best possible response to the needs of our customers. In our construction activity,

we are, of course, involved in industrial partnerships with civil engineering companies. We also have technology-based partnerships with some of our suppliers. We work with co-investors and financial partners. In addition, we develop partnerships with some of our customers, especially in areas like applying innovative products and processes, conducting joint research programmes and implementing social and environmental responsibility initiatives.

what makes Degrmont distinctive in terms of sustainable development?

J. B. The most obvious distinctive factor relates to what we do. The fact is that we are not a typical company, because protecting resources and the environment is central to all our areas of activity. Our development is inherently sustainable, because it is based on a permanent commitment to our employees and to the customers who use our solutions to enhance their own economic, environmental and social performance. The Degrmont Way involves all our employees, and is based absolutely on this commitment to permanent and sustainable development through innovation, quality, safety, local identity and respect for people and their environments. We are all united around the same ambition, which we sum up as: Committed together to water, a source of life. Now thats a sustainable commitment, isnt it?

16complementary areas of actiVity

Capitalising on our global presence and seventy years of experience

more fromJacques bleinchief operating officer of Degrmont

mobilisationwe invest in the decisive factors that leverage growth, like training, research and development. we capitalise on our global presence, which allows us to draw on high-profile expertise and a huge diversity of talent.

commitmentwe create value for our customers by offering them solutions that meet their cost and performance requirements. we then support and assist them in a context of close partnership and experience sharing.

adaptationwe support our customers by addressing changes in their own business environments, whether financial (infrastructure funding issues, etc.), economic (rising energy bills), regulatory (compliance with changing standards) or technological (adopting new processes).

18complementary areas of actiVity

targeted services for industrial customersThe integration of Ondeo Industrial Solutions in 2011 made the year a decisive turning point for Degrmont, establishing the Group as a leading player in industrial water cycle optimisation and management. From resource to re-use, Degrmont responds effec-tively to the requirements of industrial customers on every continent. This offer covers a broad portfolio of technological solutions and innovative services that combine eco-nomic performance with environmental performance. From the production of ultrapure water by deionisation to the most sophisticated wastewater treatment techniques for effluents and sludge processing, Degrmont adapts its expertise to the special require-ments of every industry.

a comprehensive offer for local authorities Degrmont is committed to helping local authorities protect their natural resources in a number of different ways, with particular focus on providing equipment for wa-ter treatment and wastewater recycling, and the treatment and processing of water treatment sludge. All the facilities provided by the company are equipped with a broad spectrum of advanced technologies developed by Degrmont research and its technology partnerships.

the preferreD partNerof iNDustry aND loCal authoritiesDegrmont mobilises its expertise and technologies to support its private and public-sector customers in achieving sustainable management of their water resources.

acknowleDgeD expertise The internationally-recognised expertise of Degrmont has been developed over more than seventy years of experience in a broad range of industry, from electricity generation and fossil fuel energy to chemicals, healthcare, mining, paper making, food processing and microelectronics. The Group shares all the same challenges as its customers, from quality and reliability to safety, cost control and compliance with environmental standards.

Designed, built and financed by Degrmont under a bot contract, the san luis potos wastewater recycling plant supplies water for two types of users: cooling water for the comisin federal de electricidad conventional power station, and irrigation water for the regions farmers. the farmers can now rely on excellent water quality, which is making a valuable contribution to remediating soils eroded by decades of poor irrigation. under the terms of a new bot contract, the power station will soon have a new water production unit to supply steam generated using recycled wastewater. we will then regain the drilling permits required to produce drinking water for san luis potos, which currently suffers from a shortage equivalent to 60 million cu. m per year.

the Degrmont solutionReverse osmosis filtration enables water to be produced at a quality compatible with its intended use. The osmosis unit membrane removes bacteria, microbes, viruses, limescale, chlorine, nitrates, metals, chemicals and any other pollutants present in the water. This system guarantees that 90% to 99% of the contaminants are filtered out.

san luis potos (mexico), a wastewater re-use plant

alberto rojaswastewater treatment Director, comisin estatal del agua

this new plant will allow us to serve both agriculture and industry

CustomiseD proDuCtioN of DriNKiNG waterGuaranteed health quality and cost control: these are the challenges addressed by Degrmont in delivering stable and accessible processes and services. This ambition is underpinned by continual development of processes at the cutting edge of technology.

New SUCCeSS iN AFRiCA Degrmont has won the contract to build a 60,000 cu. m per day drinking water production plant close to the Kashimbila dam in Nigeria.

More than

3,000drinking water production plants built worldwide

combining technologiesThe quantity and quality of water resources vary very significantly from region to region. To succeed in the challenge of providing universal access to drinking water, Degrmont offers a wide range of solutions, from sand filtration to flotation and ultra-filtration. These solutions cover the entire production cycle, from special treatments (reduction of metals and advanced removal of dissolved organic matter and micro-pollutants) to clarification/filtration (removal of suspended matter and some dissolved organic matter) and disinfection.

20

The Morsang-sur-Seine drinking water production plant in France.

supporting the expansion of Dar es salaam Degrmont was awarded the Design & Build contract to extend Dar es Salaams Lower Ruvu drinking water production plant in June 2011. The expansion of this major port in Tanzania and the associated increase in demand for drinking water made it essential that the capacity of this plant should be increased. The work to be carried out by Degrmont will triple its capacity to a level sufficient to supply half the citys population, i.e. 1.5 million people. The treatment line includes robust high-performance technologies that are particularly well suited to the local climate: Pulsatube (settling) and Aquazur V (sand filtration).

complementary areas of actiVity

iNNoVatiVe DesaliNatioN proCesses As the number of world regions affected by water stress has increased over the last forty years, Degrmont offers an environmentally-friendly alternative for all that time: reverse osmosis desalination.

environmentally-friendly processes As a pioneer in domestic and industrial water desalination, Degrmont continues to develop units built around high-efficiency processes: pre-treatment of seawater and brackish water by clarification and filtration, reduction of salinity by reverse osmosis and final re-mineralisation treatment of osmotically-filtered water to make it drinkable. Particular attention is focused on upstream purification, which is absolutely essential to ensure that membrane-based systems remain reliable and durable. The solutions offered by Degrmont include using renewable energy sources to power desalination plants and recovering as much energy as possible. The processes used to disperse salt concentrates are designed to protect marine life.

water for al Dur in bahrain 2011 saw completion of construction work on the largest reverse osmosis desalination unit in the Middle east. Operated in conjunction with an electricity generating plant, this facility has a production capacity of 220,000 cu. m per day. Advanced pre-treatment enables this unit to produce excellent quality water at a competitive price to meet local requirements and the needs of a growing population.

More than

250desalination plants built worldwide to serve approximately 10 million people

The Melbourne desalination plant in Australia.

The Al Dur desalination plant in Bahrain.

22muNiCipal wastewater purifiCatioN Municipal wastewater treatment accounts for half of all water treatment worldwide. The solutions offered by Degrmont address the twin challenges of protecting the environment and combating resource scarcity.

a challenge successfully met for industrial companies and local authoritiesDemographic trends and increasing urbanisation are the two key factors that explain the increase in wastewater volumes. Treating this wastewater poses a significant envi-ronmental challenge for local authorities and industrial companies. The quality of its stormwater and domestic wastewater purification processes means that Degrmont can guarantee high-quality discharges, even in sensitive areas, as well as new agri-cultural, industrial and municipal uses for treated water. At the same time, the use of innovative techniques like physico-chemical, biological and ultrafiltration treatments ensures that biodiversity is properly respected.

the Doha west plant extension The growing population of Doha and the need to protect water resources have led the State of Qatar Public works Authority to award Degrmont this new contract to extend the Doha west wastewater recycling plant. The project will increase plant capacity to 175,000 cu. m per day to serve 650,000 Population equivalent. The facility uses state-of-the-art membrane ultrafiltration technology to recycle 85% of treated wastewater. The water is then re-used for landscape and market garden irrigation and to replenish natural aquifers.

Ultrablue process racks in the Doha west plant, Qatar.


A MAJOR FiRST The Dehydris Twist was installed for the first time at the Chteaubourg drinking water production facility (Ille-et-Vilaine, France).

a comprehensive range of innovationsAs the end-product wastewater treatment, sludge poses a major economic and envi-ronmental challenge, to which Degrmont is responding with a range of process op-tions, from digestion, thickening, dewatering and drying, right through to incineration. In terms of biosolid recycling for use in agricultural and energy generation applica-tions, Degrmont focuses consistently on innovation in treatment quality.

an innoVatiVe partnership with bucher unipektinin June 2011, Degrmont signed a partnership agreement with the Swiss company Bucher Unipektin to develop and market an innovative sludge dewatering solution known as Dehydris Twist. This innovation uses the Bucher hydraulic press, which automatically adjusts its operating parameters to match sludge characteristics, and delivers a significant improvement in dewatering quality.

DehydrisTM Twist.

The ThermylisTM incinerator at the Seine amont (SiAAP) plant in Valenton, France.

sluDGe treatmeNtaND proCessiNG Tighter regulation and better wastewater treatment processes are generating significantly higher quantities of sludge to be treated. Degrmont offers its customers a broad range of processes that is constantly expanded as a result of innovation and partnership projects.

24

More than

200operating and service provision contracts under management worldwide

More than

1,800process water treatment plants

More than

2,000wastewater treatment plants

special technologiesIn industrial applications, water quality and quantity requirements vary widely, de-pending on the type of process and the use made of water resources: pure or ul-trapure water, combined water, washing water, water for steam generation and water for cooling systems. Degrmont and Ondeo Industrial Solutions have developed a range of processes and services for water treatment and management, right through to re-use and effluent treatment. So from water resource to the return of treated water to the natural environment, industrial customers now have a range of high-technology solutions and services designed specifically for their needs.

eco-frienDly processes Ozone is the most economical chemical to use in paper pulp bleaching processes and avoids any subsequent presence of chlorine compounds. Degrmont subsidiary company Ozonia has conducted a significant body of research in this area and is now the unrivalled leader in optimised large-scale, high concentration, high-pressure systems. Many plants now produce paper pulp bleached using ozone, enabling them to comply with increasingly stringent standards and regulations.

Sludge treatment tank in Lacq, France.


iNDustrial water CyCle optimisatioN Degrmont is committed to creating value by contributing to the processes used by its customers through the adoption of special solutions capable of producing water that meets the most exacting industrial requirements.

rio de Janeiro (brazil), petrobras oil refinery

the Degrmont solutionMembrane bio reactor pre-treatment and treatment processes, producing water that can be re-used in the production of demineralised water for the site.

were looking to reduce the cost of treating water and effluents, which means optimising effluent re-use systems and installing them in our water treatment plants and operating units. we expect Degrmonts teams to work interactively with petrobras technicians in the design, build and operating phases, so that our requirements and needs are properly addressed and incorporated.i have to say that we are delighted with the very productive partnership we have built with Degrmont over recent years and with the performance of the company, which has helped us to identify good practices and obtain improved results in terms of cost, water quality and effluent quality.

a very productive partnership built on collaboration and performanceeduardo torres executive Vice-president, engineering, petrobras

a raNGeof proVeN solutioNs

26

Degrmont has offered a comprehensive range of design, build, equipment and operating services for water treatment plants for more than seventy years. these solutions are distinctive for their high innovation content and their combination of environmental, economic and social performance.

a raNGeof proVeN solutioNs

Maltaa compact, integrated plantat the beginning of June, the water services corporation of malta officially opened the islands new main wastewater treatment plant. with a capacity of 60,000 cu. m per day, the new plant serves 500,000 population equivalent and treats 80% of all wastewater on the island, including generated during the summer tourist season. Designed and built by Degrmont in only 21 months, the plant occupies a site that is restricted to 4 hectares in order to protect the sensitive coastal environment. it features two of the companys flagship processes: Densadeg 4D for flocculation and settling, and biofor for biological treatment. the biogas generated by sludge digestion is re-used directly on-site to power its gas engines. biological deodorisation is also provided to limit any risk of odour nuisance to local residents. lastly, this new facility also makes a significant contribution to reducing pollution in the mediterranean.

key figures

30%of plant energy needs met by cogeneration

6,000plants and trees planted by Degrmont as part of the architectural and landscaping scheme

28a range of proVen solutions

thomas palix, tk halli project manager, new Delhi, india

Degrmont is a leading player in india, with more than 160 plants

built over a period of nearly thirty years. at the end of 2012, these will be joined by a new drinking water production plant: the tk halli facility, with a capacity of 600,000 cu. m per day. equipped with aquazur V filter and aquadaftm technologies, it represents the final phase of a project to supply drinking water to 4 million residents of the bangalore urban community. my role is to manage the progression of studies and purchases in close coordination with building work on-site, as well as controlling the financial and contractual aspects of the project.

turNKey plaNtDesiGN aND BuilD Its twin skills in project management and water treatment mean that Degrmont has complete control over every stage of turnkey plant Design and Build. This longstanding expertise is available to local authorities and industrial customers, and is based on fundamental values of performance, reliability and respect for the environment.

guaranteed at every levelThe Degrmont commitment to Design and Build is structured around the guarantees it provides to its customers: technical performance, on-time delivery and cost of con-struction. These guarantees apply to every type of plant and every stage of the project, from bidding to building and services to consultancy.

substantial, dependable project management expertiseDegrmont offers its customers comprehensive project management services. From the plant design stage onwards, Degrmont teams take full responsibility for engi-neering studies, drawings and equipment purchase. On-site, the Project Manager coordinates the teams from the commencement of work right through to operational testing. In the construction phase, the project management teams manage equip-ment purchase and assembly, as well as plant commissioning. A network of technical experts is also involved in inspecting, validating and guaranteeing the performance of the future facilities.

innovation: at the heart of project successThe technical and economic optimisation of the solutions implemented as part of turnkey contracts is an integral part of all Degrmont proposals. Innovation is also central to design and build projects as part of ensuring health and safety, conserving energy resources, protecting the environment and maximising quality of life.

quality assureD in May 2011, SGS iCS awarded Degrmont its first iSO 9001 : 2008 Group certification covering the companys Design & Build activity worldwide.


taking full account of operating restrictionsPlants designed and built by Degrmont are user-friendly in order to facilitate the day-to-day tasks of the future operators. They combine technical and economic performance with high levels of safety as well as measures to protect their natural or urban surround-ings. From the earliest-possible stage, the design choices made reflect the companys commitment to use optimisation and adaptation as the route to controlling operating costs, maximising safety and minimising preventive and remedial maintenance costs.

environmental integrationFor many years, Degrmont has placed sustainable development at the very centre of its priorities by associating environmental performance with social performance. As a Design & Build specialist, Degrmont uses a range of processes to reduce the environmental footprint of its projects. For example, wetlands and planted discharge areas provide additional environmental protection, at the same time as conserving biodiversity.

Successful environmental integration at the Morsang-sur-Seine drinking water production plant in France.

the Degrmont solutionThis is the first plate membrane ultrafiltration plant to be installed in the French department of Var: this process contributes to the high quality of treated water discharged into the River Giscle.

we opted for a high-performance system and a targeted product

cogolin-gassin (france), municipal wastewater purification plant

our ageing plant was no longer able to meet european standards for river discharge and a feasibility study showed that it would be more cost-effective to build a new wastewater treatment plant. so we put the project out to tender and specified a number of non-negotiable requirements: since the facility was to be located on a restricted site in an urban business environment, we needed a compact plant to deliver very high performance in terms of deodorisation and low sound levels, as well as the ability to produce high-quality treated water for return to the river. we also wanted to be able to re-use treated water in spraying systems. Degrmont addressed all these criteria with a membrane-based solution and built the plant, which became operational in July 2011. since then, weve found that the deodorisation and production systems work extremely well, and that the water discharged into the river is of very high quality. were now examining how the treated water can be re-used.

anne-marie waniartchair of the syndicat intercommunal dassainissement

32a range of proVen solutionsNicecontract renewedhaving built the nice haliotis wastewater purification plant in 1988 and operated it ever since, Degrmont was awarded a new 100 million ten-year operating contract in 2011. located on the famous promenade des anglais, the haliotis complex is not only one of the most efficient in france, but is also iso 14001 certified. its effective odour management and seamless integration into the urban landscape make it a model for wastewater treatment. haliotis comprises the pre-treatment unit, the biological purification plant, the sludge treatment plant, the sea discharge station and the air treatment facility.

key figures

220,000 cu. mof water treated every day

650,000residents served

operatioN, serViCes aND Day-to-Day/ loNG-term supportAll Degrmont customers benefit from the companys long experience in plant operation, from operational management and infrastructure maintenance to a comprehensive set of associated services.

cost optimisationNot only do Degrmont operations teams provide expert control of operational systems and processes, but they also apply a continual process of identifying cost optimisation opportunities by implementing an effective preventive maintenance system. Trained as experts in best practices, the companys specialists share their methods internationally to ensure faultless continuity of service.

customised servicesWhether or not the water treatment plant was built by the company, Degrmont offers a range of services that can be customised for every operator: these include personnel support, technical/economic optimisation, technical support and spare parts. Degrmont experts are able to provide consultancy in areas such as project construction, new plant commissioning and existing plant upgrading. Their services also include the installation of industrial IT solutions and recommendations to improve plant operation and energy performance. The companys in-house training centre has developed a comprehensive catalogue of training opportunities, including expertise transfer programmes.

plants operated worldwide

85

Jean-pierre hangout,service office Director

our priorities are providing technical support to Degrmont

plant operators and passing on operator feedback to plant builders.

perform&eau: specialist training in commissioning anD operation The PerForM&eau training centre was set up by Degrmont Services for the sole purpose of providing training for operator customers based on the companys forty years of experience and expertise in plant operation. Dedicated support is provided for plant commissioning, including the supply of operator manuals specific to each site. The theory and practical training programmes offered are individually tailored to the needs of operators and on-site technicians.

on-site supervision Degrmont engineering teams are involved in plant refurbishments, extension projects and the maintenance of previously-installed equipment. They provide expertise in all the systems and processes required by customers to upgrade their plants and work-shops, optimise processes, reduce consumption of energy from fossil fuels and ensure that their facilities fully comply with current regulations.

state-of-the-art after-sales serviceTo support maintenance and repair operations, Degrmont buyers offer customers spare parts and equipment at the best-possible cost. They supply ready-to-use equip-ment, as well as reagents and consumables, such as resins, sands, anthracite and lime. In the event of plant shutdown or a temporary need for water production or wastewater treatment, Degrmont can provide its customers with self-contained mobile treatment units as an emergency backup measure.


La Farfana is the largest wastewater purification plant in Latin America, treating 50% of the wastewater generated by the residents of Santiago in Chile. The plant capacity is 8.8 cu. m per second.

based on openness, mutual trust and the commitment of all involved, the first twelve months of this alliance have been both challenging and enormously rewarding. given the multitude of difficulties that come with a contractual transition of this size and the intricacies that must be overcome in order to succeed, i am extremely proud of all we have achieved. we have already benefited from the commitment shown by Degrmont, thanks to its effective local presence, its proven expertise and innovative abilities. more challenges lie ahead, of course, with the increasing financial pressures of a regulated environment and the rising expectations of our customers in the face of escalating prices, but im absolutely convinced that our relationship is on a sound footing.

our relationship is based on openness, mutual trust and the commitment of all involved

the Degrmont solutionAdelaide, the state capital of South Australia, has been severely affected by drought, so Degrmont has been involved in optimising its facilities and resources at every level to guarantee high-quality service, at the same time as driving down operating costs. The project is based on a wide-ranging road map called Efficiency through Innovation.

adelaide (australie), drinking water treatment and wastewater purification plant

rob Dowlinghead of operations, south australia water corporation

key figures

350 tonnes of sludge processed every day

A power demand averaging

700 kwh per tonne of water evaporated: an energy saving of more than 30%

36 a range of proVen solutionsSuzhou, Chinainnodry dryers for low water content sludgeit was in september 2009 that Degrmont won the contract to build the sludge treatment unit for the china-singapore suzhou industrial park. the innodry dryer used in this project is one of the flagship technologies developed by Degrmont. this state-of-the-art drying technology reduces the quantity of sludge to be processed by combining indirect drying (thin-layer evaporator) with direct drying (belt drier). this drying process reduces sludge water content from 80% to 10%, and the dried material is recycled as fuel for the industrial parks electricity generating plant.

eQuipmeNt aND teChNoloGiesthat maximise plaNt effiCieNCyThe companies united under the Degrmont Technologies banner offer the most appropriate solutions to water treatment plant integrators and operators and draw on a global network of approved manufacturers.

a comprehensive rangeThe range of equipment offered by Degrmont encompasses the design, manufac-ture, installation and maintenance of treatment technologies and processes. Tailored to the needs of the municipal authority, industrial, medical and leisure markets, it offers a broad spectrum of solutions for implementation at every stage of the water cycle, from pre-treatment, biological treatment and separation by filtration (ultrafiltra-tion and reverse osmosis) to disinfection, sludge processing (drying and incineration) and industrial treatments.

a wide array of applicationsDegrmont provides its customers with standardised equipment for applications such as sludge drying (Innodry 1E and Innodry 2E), ozonation and UV disinfection. Some of these solutions are modular, such as the membrane ultrafiltration, reverse osmosis and ion exchange skid-mounted units. The definition of equipment also includes complete systems, such as ThermylisTM incinerators, Densadeg clarifier/softer/thickeners, Biofor biofilters and AquadafTM clarifiers. In every case, Degrmont is responsible for the design and manufacture of these patented, standardised and packaged technologies, as well as their supply, installation and commissioning. This comprehensive proposition also includes technical support and after-sales service.

strong brandsDegrmont equipment is offered by dedicated Degrmont Technologies companies. Aquasource serves the drinking water treatment and wastewater recycling markets with ultrafiltration membranes and standard clarification/disinfection units. Ozone and UV disinfection solutions are the specialties of Triogen and Ozonia. The sludge treatment systems supplied by Innoplana are recognised as effective solutions all over the world, as are the demineralisation, electrodeionisation, ion exchange, reverse osmosis, deep gasification, ultrafiltration and nanofiltration technologies of Anderson/WPT. Lastly, In-filco offers a range of pre-treatment, clarification, filtration, biological treatment and thermal oxidation processes.

Jeff savage, head of operations at water & power technologies (wpt), usa

wpt is a Degrmont subsidiary company

specialising in the supply of complete water treatment systems. we provide membrane filter systems, but our range of technologies also covers an extremely broad spectrum, including ozonators and clarifiers. we manage projects in synergy with other group companies to provide our customers with a comprehensive and highly efficient service.


an expanded range of servicesDegrmont Technologies supports its customers before, during and after equipment purchase, beginning with site monitoring and preventive maintenance to guarantee continuity of production, followed up by local support and the provision of spare parts, refurbished parts or repaired parts.

economic solutionsDegrmont Compact Units (UCDs) are standardised modular plants, whose flexibility of installation and operation appeal particularly to urban centres, small local authorities and industrial users. The straightforward installation of these ready-to-connect units is combined with speedy delivery. The treatment processes used by UCDs enable these units to deliver high production capacities. The payoff for customers includes space saved and substantial economies.

an international innovation networkDegrmont Technologies implements its sustained policy of research and development through its three centres in Richmond (USA), Toulouse (France) and Zurich (Switzer-land). The innovative solutions and existing process optimisation opportunities devel-oped by these centres enable the company to maintain its technological advantage.

UCDPulsapak, AquadafTM Package System, Ferazur/Mangazur, UltragreenTM Package System and UltraforTM Package System are the leading UCDs currently available.

MOBiLe SOLUTiONFrench Polynesia now has a drinking water production UCD. Installed in a transportable container, the unit can be easily relocated from one island to another. This solution has been developed out of synergies between Degrmont and SPEA (the Polynesian Water Company owned by Lyonnaise des Eaux).

Xoxoxoxoxoxoxo

inside an ozonator.

exxonmobile (texas, usa), refinery

at the exxonmobil beaumont refinery, we plan to continue implementing our maintenance policy to ensure that our water treatment equipment is always fit for purpose. the expectations we have of our partner Degrmont focus not only on the supply of mobile units we can rely on, but also on accurate quality evaluation of our water as the basis for offering us better options for meeting our requirements.

the Degrmont solutionMobile industrial water treatment units are as suitable for planned locations and long-term use as they are for emergency and temporary applications. This rental service for trailer-mounted and containerised treatment plants is available worldwide from Ondeo IS and WPT. They can supply water flow rates from just a few cubic metres per hour to many hundreds of cubic metres per hour.

inside an ozonator.

David trujilloutilities manager

Degrmont offers us options that meet our requirements

key figures

2 million Population Equivalent

260,000 cu. m per day

40 a range of proVen solutionsAs Samra, Jordanenergy self-sufficiencythe as samra water treatment plant in Jordan processes the wastewater generated by one-third of the local population using technically-advanced solutions for water treatment (activated sludge and primary settling) and sludge processing (digestion and composting). Designed to produce approximately 100 million cu. m of very high-quality treated water per year, it also reduces the volume of drinking water used by agriculture and industry. the success of the project has yet to be equalled anywhere else in the world, because this plant is 95% self-sufficient in electricity consumption as a result of biogas production and hydroelectric generation.

Bot CoNtraCts:from proJeCt DesiGN to fuNDiNGBOT (Build, Operate, Transfer) plays a key role within the range of Degrmont business activities. This type of service provision requires total control of all the processes involved in funding, building and operating plants over many years and the ability to form sophisticated partnerships.

long-term supportWhenever Degrmont signs a BOT contract, the company commits to finance, build and operate a plant for twenty or thirty years. This integrated one-stop solution leaves customers free to operate their infrastructures at the end of the contract period, dur-ing which they will have benefitted from all the technical expertise and skills of De-grmont. BOT contracts draw on every Degrmont area of activity and its range of products and services.

complementary expertise BOT contracts are based on the provision of overall support and assistance to cus-tomers, from the design stage right through to plant transfer. Within this framework, all project participants contribute their own expertise and commitment. Degrmont agrees to build the plant, operate it and provide the financing required. The civil en-gineering partner supplies the skills needed to build the plant. The financing partners provide the budget required to deliver the project. The customer gradually repays the operating costs and depreciation on the capital invested over the contract period up to the point where the facility is transferred.

hassan abdallah, ceo of the as samra bot contract

this project is based on our high level of commitment

and on a series of features specific to the contract: the quality of treated water exceeds the requirements set by quality standards, we have reduced operating costs by using renewable energy to generate our electricity, and all the operations staff we employee are local people. we have also entered a key bot project stage: the transfer of expertise to local teams.

BOT contract plant at Ciudad Jurez in Mexico.

42

key figures

450,000 cu. mof water desalinated per day, rising eventually to 600,000 cu. m

27 yearsof operation by the AquaSure consortium

2 billion to build

1.2 billionin total revenue

a range of proVen solutions

Melbourne, Australiaa major public-private partnershipat wonthaggi in australia, the Victoria Desalination project is now in the construction stage under a bot contract. believed to be the largest public-private partnership in the world for a desalination project, it includes a reverse osmosis plant, an 84-kilometre water pipeline, an 87-kilometre electricity supply line and all the off-shore facilities required for seawater extraction and brine discharge. Designed to supply drinking water to one-third of the population of melbourne (nearly 1.5 million people), the new plant will be operated by the aquasure consortium of sueZ enVironnement, Degrmont, the australian civil engineering company thiess and macquarie group, the international provider of banking, financial and asset management services. fully integrated into its environment, the plant will conserve the natural habitat by creating an ecology park and reducing environmental impact though the use of planted roofs, site landscaping and protection for wildlife. it will also use 100% renewable energy generated by the new state of Victoria wind park.

sur le terrain

contrat bot majeur pour alimenter melbourne en eau potable

la solution DegrmontXoxoxoxoxoxoxoxo xoxoxoxoxoxoxo xoxoxox xoxoxoxoxoxoxo xoxoxox xoxoxoxoxoxoxo xoxoxox xoxoxoxoxoxoxo xoxoxox xoxoxoxoxoxoxo xoxoxox xoxoxoxoxoxoxo xoxoxox xoxoxoxoxoxoxo xoxoxox xoxoxoxoxoxoxo xoxoxox xoxoxoxoxoxoxo.

international growthFor many years, Degrmont has built a part of its growth strategy on the selective and controlled development of BOT contracts. The successes of this strategy have included seven government contracts in Mexico since the beginning of the 1990s, when the goal was to encourage private investment to supply equipment and infra-structures, at the same time as protecting the environment. Since 1996, Degrmont has provided operational management of the Prospect drinking water production plant that supplies 3 million cu. m of water every day to residents of Sydney in Aus-tralia. This filtration unit is the largest in the world and removes sediments and micro-particles to ensure that the treated water is completely free of all microorganisms and meets every requirement of the regional public health authority.

multiple benefitsEvery BOT contract gives Degrmont the opportunity to deploy the full range of its skills. This type of contract provides customers with four key benefits: project financing costs spread over a long period, transfer of all the associated risks to the private sec-tor, the ability to retain control of the asset and the water service, and a stable price per cubic metre treated.

Thirty years of BOT in China2011 saw the creation of the Wuhan Sino French Waste Water Treatment joint venture. Owned 43% by Sino French Water Development, 25% by Wuhan Chemical Industry Park, 22% by Degrmont and 10% by Shanghai Chemical Industry Park, the new company has won a major contract to build a 60,000 cu. m per day plant to treat effluent from the Wuhan industrial and chemicals site. The joint venture is responsible for the design, build and thirty-year operation of this wastewater treatment plant. It will also build a 300,000 cu. m per day water production plant beginning in 2013.

The As Samra wastewater treatment plant in Jordan.

a range of proVen solutions44iNNoVatioNDegrmont has a very special responsibility to offer its customers solutions that support growth in ways that respect people and the environment. Innovation contributes to fulfilling this commitment by creating products and services that favour the carefully-considered use of water, identify alternative resources and limit environmental impacts.

technological leadershipDegrmont has always leveraged significant financial and human resources with particular emphasis on improving public health, conserving natural resources and reducing dependency on energy from fossil fuels. As part of anticipating major de-velopments in water treatment, the Group develops its own technology solutions by contributing to collaborative research programmes and drawing on the expertise of its partners. The complementary nature of the specialist areas of expertise offered by all these contributors allows the company to offer customers innovations that are suited and tailored to their needs and expectations.

14.5million invested by Degrmont in research and innovation in 2011

More than

500technologies patented

marc chevrel, acquisition partnership and innovation Director at Degrmont

our key challenges are energy efficiency, the recycling

of biogas in our plants and the smart technologies used to provide optimum control, operation and regulation of our processes. in achieving these challenges, we can rely on the support of r&D programmes conducted in conjunction with sueZ enVironnement and are working with gDf sueZ to improve the energy performance of our facilities. in the wider sense, we identify new technologies with the potential to give us a competitive advantage and take up the challenges that Degrmont will embrace over the next three to five years.

The access ports of a SeacleanTM pressurised filter. ThermylisTM in the elbeuf water treatment plant in France.

reducing the environmental footprintThe technologies developed and applied by Degrmont research teams focus primarily on biology, desalination, biosolids and disinfection. The primary objective of this work is always the same: to reduce the environmental footprint of our plants by limiting their energy consumption and greenhouse gas emissions.

optimisationDegrmont continues to develop its new technologies using the RAFT process, which involves standardising and optimising all the phases involved in product creation, from design and engineering to purchasing and commissioning. The consistent goal is continuous improvement and the quest for new developments of existing technologies.

aquaray 36 is a new drinking water UV treatment system for large and medium-sized towns and cities, which disinfects by deactivating the pathogenic microorganisms found in drinking water distribution networks. equipped with medium-pressure UV lamps that generate high radiation levels, this system has a small physical footprint and can disinfect up to 8,000 cu. m per hour with very low pressure losses.

DriNKiNG wateraquadaftmSurface water clarification by rapid flotation using a plug-flow flocculator.>Customer benefitInstant start-up for optimum ease of use, and small footprint.

pulsazurtmThis powdered activated carbon contactor eliminates the majority of micro-pollutants and anticipates pollution peaks.>Customer benefitLow maintenance costs and reduced consumption of activated carbon, reagents and energy.

regulazurtm iiiComputerised management of open filter drinking water installations.>Customer benefitOptimises plant productivity and guarantees the reliability and regularity of water quality. Its strengths include savings on water, operating costs and maintenance costs.

ultrazurtm smartracktm*Drinking water production with pressurised out/in ultrafiltration modules.>Customer benefitUltrazur provides a bacteriological barrier to guarantee water hygiene and safety.

ultrazurtm Zw 1000Advanced clarification using immersed ultrafiltration membranes.>Customer benefitUltrazur ZW 1000 is a compact solution that provides a bacteriological barrier to guarantee water safety and uniform water quality.

DesaliNatioNseacleantm filterPressurised multimedia filtration for clarification of seawater.>Customer benefitThe Seaclean Filter can be fitted to any size of installation to stabilise and guarantee filtered water quality upstream of the reverse osmosis feed.

seadaftmSeawater clarification using rapid flotation.>Customer benefitThe ability to cope with the high circulation velocities required to clarify large volumes of seawater prior to desalination by reverse osmosis. Seadaf offers a flexible solution for treating turbidity

(algal blooms and suspended material).

ultramarinetm smartracktm*Pre-treatment of seawater using pressurised out/in ultrafiltration modules.>Customer benefitUsed upstream of the reverse osmosis process, this solution contributes to meeting sustainable development objectives by eliminating any discharge of iron salts into the marine environment.

iNDustryoxybluetmAdvanced wastewater polishing treatment using ozone and associated biofiltration.>Customer benefitRequiring 50% less ozone than other processes, OxyblueTM is highly flexible in its additional ability to remove micro-pollutants from municipal wastewater.

aN aDaptaBle raNGeCompakbluetmRemoval of suspended solids and associated pollutants using immersed disk filtration.>Customer benefitEfficient, and producing high-quality water for re-use or discharge in sensitive areas, Compakblue is a compact energy-efficient solution.

a range of proVen solutions46flaGship proDuCts

SeRViCe SOLUTiONSDegrmont offers a diverse range of Service Solutions to support local authorities in operating their plants. The local authority maintains operational control, whilst receiving assistance for specific services and tasks, such as commissioning, equipment maintenance, refurbishment, plant extension, rental of specialist equipment, process analysis, online parts and equipment purchasing and operator training.

innovations: a mine of solutions As an essential factor for company competitiveness, innovation has, for the last two years, had its own regularly-updated interactive guide available at www.degremont.com. The Innovations Guide showcases 21 innovative tech-nical processes in Degrmonts six proven areas of expertise: drinking water, municipal wastewater, desalination, biosolids, re-use and air. It also offers technology solutions for combating odour pollution.

ultrabluetm smartracktm*Cleared water treatment using pressurised out/in ultrafiltration modules for re-use.>Customer benefitSolution suitable for plant outlet applications where water is to be re-used for agricultural and urban applications, etc.

muNiCipal wastewaterCleargreentm Biological treatment of effluents containing high concentrations of ammonia.>Customer benefitCleargreen offers the opportunity to reduce aeration demand by 60% (compared with traditional activated sludge treatment) with zero consumption of reagents.

Cyclortm Activated sludge treatment using a sequencing batch reactor.>Customer benefitComplete treatment process producing water suitable for discharge in sensitive areas. Exceptionally small footprint.

GreenbasstmRegulation of sequenced aeration for activated sludge.>Customer benefitGreenbass reduces treatment plant energy consumption by continually fine-tuning the flow of air supplied to the biological treatment process.

GreendaftmTertiary phosphate removal by rapid flotation.>Customer benefitRemarkably effective in removing phosphates with very low reagent consumption.

meteortm mBrBiological purification of wastewater using moving bed cultures.

>Customer benefitComplete treatment of wastewater with a very compact footprint.

meteortm ifasBiological purification of wastewater using combined cultures.>Customer benefitSupports broad variations in load and meets the most demanding discharge regulations at controlled cost.

ultrafortmBiological purification using hollow fibre ultrafiltration membranes.>Customer benefitTreatment quality optimised to protect the natural environment and the public. Effluent re-use helps to protect water resources.

ultragreentmBiological purification using ultrafiltration flat sheet membranes.>Customer benefitA cost-effective solution that provides guaranteed water quality that exceeds the most demanding standards, even where seasonal fluctuations are high.

BiosoliDsDehydristm limeAdvanced dewatering of sludge by pre-liming before centrifuging.>Customer benefitSignificantly improved dewatered sludge quality, compared with that obtained using post-liming processes.

Dehydristm osmoAdvanced sludge dewatering using electro-osmosis.>Customer benefitDrier sludge without the need for mineral conditioning.

Dehydristm twistBoosted sludge dewatering using piston press technology.

>Customer benefitUp to 30% reduction in sludge bulk compared with conventional dewatering.

Digelistm turboEnhanced digestion of biological or mixed sludge.>Customer benefitHalf the digestion volume, higher biogas production and a 5-10 point gain in dryness.

evaporistm ltLow-temperature sludge drying system.>Customer benefitLess primary energy and extremely safe operation.

thermylistm 2sTwo-stage sludge incineration process.>Customer benefitDrastically reduced energy costs achieved by using the heat value of sludge.

airazurairtm B-twinBiological treatment of hydrogen sulphide and mercaptans.>Customer benefitA sustainable approach to odour pollution control.

azurair BoostDeodorization of wastewater treatment plants through advanced desulphurisation.>Customer benefitControl of odour pollution from wastewater treatment plants in warm climates.

*smartrackSmartrack is a standardised industrial-scale production system that can be adapted to cope with any changes in the plant, offering customers complete freedom of supplier choice when replacing ultrafiltration modules. It covers three Degrmont areas of expertise: drinking water, desalination and wastewater re-use.

flaGship proDuCts

Degrmonts sustainable development policy is realistic and practical. it is implemented in the form of projects guaranteeing the delivery of technological and economic performance that respect the companys stakeholders and the environment.

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CommitteD to the future

a respoNsiBle aND DyNamiC approaChBeing a world leader in water treatment means being the company that opens up new markets, drives progress in its areas of expertise by delivering the right solutions to customers, attracts talented new people and plays a full part in employee relations and society.

four sustainable priorities The unequal distribution of water resources is what drives Degrmont to offer solutions that form an integral part of economic, social and environmental projects designed to meet specific and local needs. With this context, the Group has adopted the four sus-tainable development priorities set by SUEZ ENVIRONNEMENT in 2009: to conserve natural resources and promote the circular economy, to make our employees active contributors to sustainable development, to innovate in order to meet environmental challenges and to build up development with all our stakeholders.

common vision and shared valuesIn todays world economic environment, the vision adopted by Degrmont is an es-sential one. Customers have new requirements in terms of shorter lead times, increas-ingly complex projects, new regulations and more competitive products and services. Challenges have also changed: environmentally-integrated plants, eco-footprints, user-friendliness, and so on. The Degrmont Vision is a road map designed to guide the company towards achieving its ambition of being Committed together to water, a source of life, and is based on the Degrmont Way, which defines the behaviour and procedures to be shared by all employees.

skills network As a subsidiary of SUEZ ENVIRONNEMENT, Degrmont benefits from the technolo-gies, expertise and information about local challenges and customer needs shared by all the entities operated by its parent group: the result provides powerful leverage for success. The same networked approach also applies within Degrmont itself, whose employees in more than 70 countries apply their expertise and experience in synergy with each other. This international pooling of skills also makes it possible to identify and develop high-potential staff, skills and diversity.

training: guaranteeing the future As part of passing on its individual culture and training its people in best practices, Degrmont is consolidating its training policy by incorporating todays new customer requirements and evolving its learning methods and resources. As part of this evolution, company training specialists are developing new learning resources tailored to new needs and a series of e-learning modules is already available. They offer the added benefit of exchanging good practices. A new project management training module was introduced in 2010 for employees involved in plant design and build. The new module is based on the internationally-recognised Project Management Institute methodology.

50committeD to the future

khadija mouhaddab, Deputy Director for sustainable Development and risk prevention

Diversifying the origins and skill sets of our people, reducing

the energy consumed by ourselves and our customers, and taking on-board the concerns of our stakeholders are just three of the areas in which we are gradually building our corporate social responsibility model. since 2008, our commitments have been regularly audited by goodcorporationtm, with special focus on interviews with our employees, customers and suppliers. goodcorporationtm evaluates the actions we implement to protect the environment, as well as measuring the effectiveness of our management procedures and business ethics policy. this is one of the ways in which we ensure that we are correctly addressing the three core issues of sustainable development: economic, environmental and social.

enhanceD performance identifying good as well as weaker practices is an excellent way of creating a flow of practical feedback. Run by the engineering-innovation Department for several years now, ReX (the in-house acronym for the feedback process) has become an effective and unifying method for analysis that is being rolled out across the Group. it is also essential for avoiding the repetition of substandard practices and failures and capitalising on successes.

camille bornstain, Diversity and remuneration manager

in 2011, we increased the proportion of disabled

employees working for the company from 0.7% to 2.7%, and negotiated framework agreements to increase the amount of purchases we make from the organisations with high numbers of challenged staff. we also conducted a survey amongst 400 women to try and identify those factors that inhibit equality of opportunity in the workplace. we used the results of that survey to put together an agreement on gender equality across all our career opportunities, and that agreement was signed during the year. we have also offered employees aged between 45 and 55 career appraisals to prompt discussion on inter-disciplinary mobility. lastly, we have begun consulting on quality of life in the workplace to evaluate the challenges we face in working conditions. the results will form the basis for a precise action plan in 2012.

listening to our customers The satisfaction survey first introduced in 2010 has been repeated to measure satisfac-tion levels amongst Degrmont custome

degremont ra 2011 en

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