New study: water security is a prerequisite for the Flemish economy

The 15 sectors with the highest water consumption account for a quarter of all jobs. These sectors generate more than 70 billion in gross added value. “The new figures clearly show that water security is crucial for the industrial fabric and for Flanders as an investment location,” says Dirk Halet, strategic coordinator at VITO Kennispunt Water. At the same time, water costs are rising faster than inflation, and cooling water remains a critical component in industrial processes. “Innovation will be the key to strengthening water security and economic resilience together,” explains Halet.

Water Security is a Prerequisite for Economic Security

The new insights confirm that Flanders is at a tipping point. This is also recognised by the Flemish government, which is implementing further measures for a water-resilient Flanders with the Blue Deal.

Cooling Water Usage Exposes Vulnerability

A notable trend is the resurgence of cooling water usage. After a significant historical decline between 2009 and 2015 (-43%) due to the closure or conversion of coal-fired power plants, usage has been increasing again since 2015 (+28%), particularly in energy and chemistry sectors. Warmer rivers and strict thermal norms further hinder industrial cooling.

“Cooling is increasingly determining the operational margin of industrial facilities,” says Halet. “The future of industrial water security depends as much on innovation in cooling technology as it does on innovation in purification or reuse.”

Process Water Increases, Companies Accelerate Transition to Alternative Sources

Total water usage (including cooling water) has fallen by 22% since 2009, mainly due to a sharp reduction in cooling water usage. However, process water usage (water needed in production processes and agriculture) has increased by 11% (comparing the period 2009-2011 to the period 2020-2022). Water usage in industry remains almost stable and decreases slightly by 1%; in agriculture, however, there is a clear increase of 25%. Additionally, we see a decrease in the use of drinking and groundwater, and companies are focusing more on alternative water sources, such as rainwater and treated wastewater.

“The transition is absolutely positive, but insufficient to eliminate structural vulnerability,” says Halet. “We need innovation and resources to rapidly scale up circular water flows, data-driven management, and efficient processes.”

The main consumers of groundwater are agriculture, the food sector, and the beverage industry, accounting for 68% of total groundwater consumption. The main consumers of drinking water are the chemical sector, the sector of coke and refinery products, and the food industry, together accounting for 42% of drinking water consumption within the Flemish economy.*

Price Incentives are Useful, but Innovation Builds Resilience

Although price can play a role in discouraging waste, according to VITO Kennispunt Water, innovation is key for successful transitions. “A pricing policy can provide direction,” concludes Halet, “but it doesn’t build a robust water system. Therefore, we must innovate on multiple fronts simultaneously: in terms of technology and capacity, but also the business models and regulations must evolve. The new figures show how urgently Flanders needs to strengthen these levers.”

Innovation is thus one of the seven strategic levers of the Flemish Blue Deal, alongside natural recovery and nature-based solutions, water as a guiding principle in spatial processes, and a higher water awareness.

*The drinking water sector is explicitly not included in the analysis of economic importance. Since water companies extract water (groundwater, surface water) to produce drinking water that is subsequently used by other sectors, using figures from the drinking water sector would result in double counting in water consumption.