In July 2016, Water. Desalination + reuse (Faversham House) reported that British water company Hydrology was set to build and run a desalination plant for industrial group Unigel in Cubatão, São Paulo state. The arrangement rested on a ten-year supply agreement, funded through a project bond with an expected IRR of 22.75 percent. The plant was to draw from the tidal São João river, whose salinity could shift between brackish water and seawater within one day, so it was designed for fluctuating chloride levels.
The report showed a financing model in which a small industrial plant was funded by a bond, secured by a long-term offtake agreement with the industrial customer.