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Choke 01 · Sector VIII

The Desalination Monopoly — Energy Recovery's Ceramic Devices

Pressure Exchangers · Seawater Reverse Osmosis · 60% Energy Reduction

One small Northern California company makes the ceramic device that ~90% of the world's seawater desal plants need.

Seawater reverse osmosis (SWRO) is how the Middle East, Singapore, the Mediterranean, and increasingly California get fresh water. Push seawater through a membrane at ~70 bar of pressure, the salt stays behind. Problem: 100% of that pressure energy gets dumped on the "reject" side and wasted — making desal expensive. Energy Recovery's PX pressure exchanger is a ceramic rotor that captures up to 60% of that pressure and recycles it. Per Evercore ISI and Raymond James, Energy Recovery has ~ 90% share of the global SWRO ERD market ; near-100% in the largest plants. The product is built around a 30-year ceramic core.

Why this is a chokepoint

Without the PX, every desal plant on Earth would use roughly twice as much electricity. Saudi NEOM, Mediterranean desal expansions, and California Carlsbad — all require this part. Only one company makes it at scale.

1 name on the watchlist

~90% of large-scale SWRO pressure exchangers. PX Q650 launched March 2026.

San Leandro, CA company that designs and manufactures ceramic pressure exchangers (PX) — rotating drums that recover hydraulic energy from the brine outlet of seawater reverse-osmosis desal plants . March 2026 launched the PX Q650 (250–650 gpm, 99% peak efficiency, 10-year doubled warranty). Expanding into wastewater and CO₂ recovery applications.

Sector sources