Israel's Desalination Boom

Money in the Mediterranean

By
Tuesday, May 18th, 2010

A grey whale recently appeared off the Mediterranean coast of Israel.

It's the first time a grey whale has been spotted outside the Pacific Ocean since the 18th century.

Because of melting arctic ice, the whale erroneously headed into the Atlantic via the Northwest Passage, before turning left at Gibraltar and heading into the Mediterranean.

The whale thought is was headed down the Pacific Coast to the Gulf of California.

Now you may be wondering what a gray whale has to do with green investing. The answer is more than you know...

Money in the Mediterranean

Having a mother who was born in Naples, I've visited the Mediterranean several times... eaten its fresh seafood... enjoyed its warm breezes... swam in the Blue Grotto... and taken boats to Sicily.

Its aesthetic value is immeasurable.

But I never imagined that it could put money into my own pocket.

Yet it's about to do just that.

Twelve hundred miles east of Sicily lies the Western Shore of Israel, the final destination of our grey whale.

And it's there that we can begin to see the money in the Mediterranean.

You see, the whale arrived just in time to witness the inauguration of the largest reverse osmosis desalination plant in the world.

Costing nearly half-a-billion dollars to build and with a network of pipes reaching far into the sea, the plant can take the salt out of 33 billion gallons of freshwater each year.

It's the third of five such facilities that will dot Israel's coastline, eventually providing two-thirds if the country's drinking water.

I must emphasize this point. These plants will provide 66% of Israel's drinking water.

The company behind them is IDE Technologies, and this outfit is doing nothing less than banishing water shortages from the face of the earth — a goal that has been ambitiously pursued by the entire world for decades.

Israel sees the impact, and has already allocated $500 billion to ensure the plants are connected to the country's water distribution system.

The Middle East to the Southwest

Part of Israel's need for new sources of freshwater have to do with climate change.

The same forces that allowed the grey whale to navigate the Northwest Passage have brought increasing drought to Israel.

According to a recent report by Friends of the Middle East, "Because of years of inadequate rainfall, the Sea of Galilee, a main source of water in the north, has reached record low water levels in recent years, while the Jordan River, which flows out of the southern end of the little sea, may slow to a trickle in some places."

Wherever you are in the world, I know a similar situation exists near you...

As populations continue to boom, water supply has remained constant, leaving countries in six continents with shortages. In addition to the Jordan, the Yangtze, Ganges, and Colorado Rivers often never reach the sea.

Whether in Israel, Australia, or the Southwest United States, drought warnings and water use restrictions have become the norm.

And freshwater doesn't make itself...

So in addition to conservation, the only way to combat this global problem is by taking the salt out of ocean water.

That's why so many companies are pursuing it: GE (NYSE: GE), Siemens (NYSE: SI), Doosan (KSE: 000150), Dow Chemical (NYSE: DOW), and the above-mentioned IDE, to name a few.

If you think oil companies have been making record profits, just wait until these companies monopolize the world's water supply.

The big boys — GE, Siemens — will be building and operating the world's desalination plants. But they won't do you any good as an investor.

Sure, they'll stay on par with the market, but they can't double — or even triple — your money in relatively short order.

But there's one company that can; one that already provides a crucial part of desalination plants to behemoths like GE and Siemens.

This company even has its parts in Israel's new series of desalination plants.

The piece they make, detailed in this report, dramatically reduces the cost of desalination. In fact, this company holds the key to making desalination affordable for everyone everywhere.

Big name investors are already on board, as they know the share price will soar along with the use of desalination.

Not only will the share price rise, but the company is also a major buyout candidate as global conglomerates jostle for market share in this valuable industry.

Investors and world leaders are already salivating over this technology. And you can own a piece of it, right now, for less than $6.00 a share.

Call it like you see it,

Nick Hodge

Nick


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Editor's Note: From solar and wind to geothermal and biofuels, Green Chip readers want to know which renewable energy resource will take over where fossil fuels leave off. The answer is...all of the above!

There is no one single solution to today's energy crisis. However, the combination of all viable renewable energy resources, coupled with energy efficiency, conservation and smart grid development will not only lead us to energy independence and a cleaner, more sustainable energy infrastructure — but also to what will soon prove to be the greatest investment opportunity of the 21st Century.







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Comments:

Comment by Peter Locke on 2010-05-24
Caught one typo, but that's beside the point. I'm all for green energy, but I'm thinking that the biggest problem is POPULATION If we still had the World population that we had as late as 1950, there seems reason to believe that we would have sufficient water... and even oil and gas to last A LITTLE WHILE. My horror scenario, is we will find energy so plentiful that we're living on top of each other in buildings that produce excess energy, topped with vertical growth medium gardens, that produce both vegetables and diesel fuel (That is carbon neutral). So, the walls of the building see the
Sun, so does the garden, but the people...only if they take an excursion to the roof...on holiday!

The whale thought is (IT) was headed down the Pacific Coast to the Gulf of California.
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