Starting in 2030, the Elbe River will supply industrial water to Dresden’s chip factories

Starting in 2030, a river water treatment plant is set to supply industrial water to Europe’s largest semiconductor cluster in northern Dresden. The goal is to permanently separate the drinking water supply from industrial use and to make both systems future-proof.

Dirk Panter, Saxony State Minister for Economic Affairs, Labor, Energy, and Climate Protection: “With up to 100 million euros in funding, the Federal State of Saxony is sending a clear signal: We are strengthening Europe’s most important microelectronics hub and laying the groundwork for further strategic growth, innovation, and competitiveness. At the same time, this project—in close collaboration with the City of Dresden and utilities such as SachsenEnergie—demonstrates that large industrial developments can only succeed with a robust water, energy, and transportation infrastructure—and that such forward-looking projects can be implemented in Germany.”

  • Closed-loop water system: Treated water flows back into the Elbe

To future-proof the water supply for both the population and industry, SachsenEnergie has been separating the drinking water supply from the industrial water supply in several steps since 2023. The river water treatment plant is being built in the Übigau industrial park and will supply chip manufacturers in northern Dresden via two new pipelines starting in late 2030. At peak times, the plant can provide up to 67,000 cubic meters of water daily, and scalability has also been planned for. About 80 percent of the water used flows back into the Elbe, treated, via the city’s drainage system. Thus, even during low water levels in the Elbe, less than 0.23 percent of the water that flows through Dresden every second is withdrawn.  

  • Here are the next construction steps

The site investigations for the new river water treatment plant are largely complete. In the next step, the State Dam Administration will upgrade the flood protection dike in Übigau. Once the necessary permits and detailed plans are in place, construction will begin. Work on the transmission lines that carry the water north has been underway since 2024. 

  • Clear financing: No burden on residential customers

The total cost of the industrial water supply system, including transmission lines, currently stands at over 300 million euros and will be largely covered by SachsenEnergie. The state capital of Dresden and the Free State of Saxony are contributing 150 million euros. Until the river water treatment plant goes into operation in 2030, the industry’s rising water demand will be met through self-financing investment measures in the drinking water infrastructure by SachsenEnergie. Residential customers will not bear any costs attributable to the production of industrial water. SachsenEnergie allocates the expenses for the two separate supply systems—industrial and drinking water—on a user-pays basis. 

  • A project with far-reaching significance beyond Dresden

The construction of the river water treatment plant is also attracting international interest. SachsenEnergie CEO Dr. Frank Brinkmann emphasizes the project’s sustainability: “We don’t just want to meet current needs, but to lay the foundation for a resilient industrial cluster with a stable supply infrastructure that enables further business expansion in the future. Our experience is already in demand from other regions in Germany and Europe.” Inquiries are coming from the Netherlands and France, among others. The project can thus serve as a model for other industrial sites across Europe.