Water Education Foundation
This is just one post in the Investing in water Category
Click here to view all posts

California’s drought could mean water boom, say experts; This week’s state-issued drought could attract more interest to an already booming market

Posted by: Maven on June 7, 2008 at 5:33 am

From CleanTech:

While “drought” is not the kind of word that people generally enjoy hearing, especially when it’s coupled with “statewide” and “catastrophic,” California’s drought has the potential of turning bad into good, say industry experts. “This is going to be truly explosive. It’s going to be a boom,” said Neil Berlant, a fund manager of the PFW Water Fund at Crowell, Weedon & Co. investment group. “People have always over looked [water] because it’s been inexpensive,” he said, pointing out that was about to change in California.

Berlant has been investing in water for almost two decades and claims his water fund has beat the market every year, for the past 18 years. According to Berlant, water is the largest industry in the world and encompasses a large spectrum of companies—from treatment to pump manufacturers, to filter and membrane companies—all of which could be needed in much larger supply in California soon.

One such company making a difference is San Leandro, Calif.-based Energy Recovery, a desalination company founded in 1992 with the aim of making seawater desalination affordable by reducing energy costs—one of the most common complaints with desal. “Their equipment has made a significant impact of reducing the cost of desalinating water,” said Berlant. “It’s an energy intensive process, but they’ve made a dent and dramatically decreased the cost.” Representatives from Energy Recovery were unable to speak with Cleantech Group, as the company filed for a share sale to raise up to $175 million earlier this year (see Cleantech water deals diving into rough market).

Conversely, David Henderson—a managing director of Toronto’s XPV Capital—looks to substantial growth in reuse, recycling and conservation areas. “Those are the low hanging fruit when it comes to managing water resources,” continued Henderson.

Find out more from the CleanTech website by clicking here.

June 7, 2008 · Filed Under Investing in water

Comments

Leave a Reply