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Environmental solutions opportunities in post sanctions Iran

Hydrocarbon Engineering,

On 14 July, the Joint Comprehensive Plan of Action was signed in Vienna by Iran and the P5+1. It is an agreement in which Iran has agreed to curb some of its nuclear activities in return for relief from sanctions put in place by the UN. Should sanctions be lifted totally, Iran would be able to rejoin the global markets and gain access to fund previously tied up in overseas banks.

The process of unwinding 10 years of sanctions will not be a quick or easy task, however it could be lucrative for companies prepared to meet the pent up demand of many of the country’s critical sectors. Dev Dorasmay, Consultant, ANZ, Frost & Sullivan said, “one of the most critical areas of need for Iran at present is in relation to its water supply. Unfavourable climate conditions and specific policies of the previous government have put a heavy strain on the country’s water supply and needs to be addressed urgently.”

Frost & Sullivan’s ANZ team has assessed areas where environmental technologies could present significant opportunities for relevant Australian companies.


The Iranian government has proposed a number of desalination projects that look to produce over 1 million m3/d of water to supply the industrial provinces of Yazd, Kerman and Hormozgan in Southern Iran, as well as to mine sites in the east.

Renewable energy

Even though Iran is a net exporter of crude oil, it is keen on diversifying its dependence on carbon based energy sources. At present, the Iranian energy sector is faced with huge fuel costs against low productivity in power generation due to ageing power plants that employ outdated technology.

The renewable energy industry in Iran is at a nascent stage, but the current Iranian government has voiced its intent to significantly develop the domestic renewable energy sector over the coming decade. In an effort to encourage private investors to develop new projects in this sector, the government has initiated a range of incentive policies, such as providing necessary land for renewable energy projects free of charge for a period of 20 years, as well as long term guaranteed contracts for the purchase of electricity generated by renewable sources including prioritising energy purchase from private and cooperative sectors. The government will also guarantee the purchase price from renewable energy sources at US$0.24/KW against US$0.04 for power from fossil fuels.

This year, the government assigned US$5 billion for power plant optimisation, as well as renewable energy generating projects. Furthermore, the government has also assigned over US$1.7 billion for the replacement of current power plants with steam cycle power plants over the coming year.

Edited from press release by Claira Lloyd

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