If you think I’m making up the problem of water scarcity, or you think it’s a problem for places far far away, or it’s just another hippy trend that isn’t real – talk to the developers in California who have piles of wood stacked up that they can’t turn into houses because the state won’t approve “will-serve” letters. In other words, the state can’t promise they will serve fresh water. Trust me, the state has no motive to stop economic growth like this.
Desalination is the process by which most of the world will likely turn to, as they need fresh water. Not too many investments open to the retail investor, yet. But eyes are open, and ideas are rampant.
I already own Hyflux. And I’ll likely buy a little ERII if I can get it for anywhere near $6 upon the ipo.
But thinking outside the box here, I’d like to own the names selling the membranes, and doing the chlorination & dechlorination, or pH neutralization. My favorite idea on how to invest in desal is buy the guys handelling/channeling the brine. The brine is the salt the facilities need to deal with. Usually it means dumping it back in the ocean, which, on a conservation of mass basis looks okay, but studies have shown clouds of shrimp dieing and discoloration of beaches. Of course, less unique, you could own the names selling oil-less pumps. That seems easy.
Check out this facility in Cypress:
Check out this bore in Australia:
It’s what’s used to drill horizontal holes for the brine. Link to Source.
