I had an interesting meeting yesterday with Gershon Baskin, who is Co-CEO of the Israel/Palestine Center for Research and Information, who also happens to work with Terry Spragg, on introducing a new way of transporting water to countries in need. Spragg has developed waterbag technology, which may be a cheaper way of transporting water than by using tankers.
With countries all over the Middle-east suffering continued drought conditions, this type of technology has the potential to ease the problem. I may be wrong but I doubt that they can move enough water for the waterbag to be a total solution, rather is can be used as part of a more comprehensive plan.
You turn on the faucet, and-voila-you have a drink of water! Those of us who come from western nations tend to take water for granted. However, after a few years in Israel, we appreciate the fact that whatever water we receive is a gift. The media is filled with reports about how the world is running low on crude oil, but not too much attention is paid to the growing water crisis. Water as an Investment
As abundant as it appears to be, only about 20% of the global population has access to running water. Additionally, only one-third of the world’s population has access to clean water. In fact, many estimate that in 40 years, more than four billion people, half the world’s population, will be living in areas that are chronically short of water. Moreover, economic development has placed greater pressure than ever on the supply of fresh water. In 1900, the global annual water use per capita was 350 cubic meters. In 2000, that number had grown to 642 cubic meters. In the United States alone, the demand for water has tripled in the past 30 years, while the population has grown by just 50%. China, Africa and the United States
The need to increase access to clean water around the world has led some to call water the “oil” of this century. As the world becomes more and more developed, wealthy countries will not only be able to afford, but will also have a moral obligation to provide this basic necessity to their citizens. China and India, which are experiencing economic booms right now, are therefore investing hundreds of billions of dollars in improvements to their water infrastructure, while many sub-Saharan African countries that are beginning to show signs of economic growth will soon need to begin to provide basic resources to their population. In all three of these examples, these are huge populations that are in their infancy when it comes to the basic needs of their citizens. They have been steeped in poverty for decades, and they are emerging only now. As such, they need to start from scratch, which means access to water and building roads.
In terms of the United States, the Environmental Protection Agency estimates that up to $1 trillion will have to be spent on upgrading U.S. water infrastructure over the next few years. The country’s aging infrastructure, much of which is more than 100 years old and has long exceeded its useful life, is in a state of utter disrepair. In the United States alone, the network of drinking water pipes extends more than 700,000 miles - more than four times the length of the National Highway System. This all adds up to the need for new reservoirs, better water canals and more efficient irrigation systems. Israel happens to be a global leader in the innovative technology needed for making such repairs. Get Advice
While many experts believe that there will never be substitutes for water, I tend to take a much more optimistic view of things. All kinds of technologies are being created to tackle the issue before it turns into a crisis. If we were to fast-forward 50 years, I am sure that we would be shocked at the technological advances made. Investors should speak with their financial advisers to see what options are available to invest in the water industry.
Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
Written by: Israel Investor Newsletter | July 27, 2008
A couple of months back, a jewel in the Israeli cleantech crown raised some additional funds (some even coming from Sir Richard Branson). GreenRoad Technologies, with development in Or Yehuda, employs a in-vehicle device that improves driver safety and betters fuel consumption for car fleets. Read Cleantech-Israel’s review of the deal as well.
I’m reading the article and it looks great. GreenRoad’s Safety Center, the firm’s flagship product, seems to be getting traction with fleet operators and insurance firms, looking to decrease accidents and improve efficiencies. While GreenRoad is doing wonderful things for Israeli Cleantech and kudos to them, I’m struck with that fact that Pointer Telocation (PNTR), whose Chairman, investor Yossi Ben Shalom, we interviewed a few months ago, is not a player in this space.
Pointer has an interesting business. While providing road-side services in Israel and abroad, Pointer provides a lot of location-based services for the auto industry. Via RF-systems, the firm can locate autos. Via cellular units, the company has essentially combined GPS and GPRS systems with embedded software together in on box. They also have an impressive command and control system that allows for fleet management and stolen vehicle recovery (SVR).
With a install base and global sales, why isn’t Pointer forging ahead beyond SVR and into more value-added service like GreenRoad is providing? Maybe a partnership is in order?
Disclaimer: Author’s fund holds a position in PNTR as of 7/27/2008.
Globes out today with an article about Project Better Place CEO, Shai Agassi’s recent address to the House of Representative’s Select Committee on Energy Independence and Global Warming. Agassi, an Israeli uber-entreprenuer who had sold his software firm to German software giant SAP, had pretty compelling statitics backing his new venture — a venture focused on developing the infrastructure for mass-market electric cars.
Couple of points from Agassi’s presentation
for the cost of 2 months of oil ($100B), the U.S. could put in place electric car infrastructure to end oil dependence
for the price of 1 year worth of oil ($500B), the U.S. could “creat[e] fully renewable electrical generation sufficient to power all of the nation’s vehicles”
Operating costs for electric cars is about $0.06/mile while traditional combustion engines cost $0.16/mile
You can see the entire webcast that took place last week here. It’s an Interesting discussion and we’ve discussed Agassi’s plans previously on this site. We’ve also interviewed one of his initial investors, Israel Cleantech. Shai’s blog is also a good resource for his plans.
Shai and Co. have made a lot of PR success in Israel and it appears that from a partnership perspective, they are putting the pieces together. Large Israeli investors continue to throw money at cleantech and it appears U.S. investors are also getting bulled up on the project.
A couple of months back, a jewel in the Israeli cleantech crown 
uber-entreprenuer who had sold his software firm to German software giant SAP, had pretty compelling statitics backing his new venture — a venture focused on developing the infrastructure for mass-market electric cars.