As investors thirst to fortify portfolios with stocks that can combat the deep slump in economy, can anything get more recession-proof than water? The Dow Jones U.S. Water Index bears testament to the fact, by gaining 15.2% in the last three months, compared to the 27.4% decline in the S&P 500 and 22.6% decline in Dow Jones Industrial Average.
Exploding global population has made water a very valuable and fragile resource and in many struggling economies demand outpaces supply. Although about 75% of the earth is made up of water, much of this water is unsuitable for use. Seawater represents about 97% of earth's water component, 2.5% is frozen ice and a meager 0.5% is available for use. This small percentage also includes polluted water that is unfit for consumption. Like the famous poem goes, Water, water, everywhere, nor any drop to drink…
Hence, desalination - the technology that turns seawater into fresh water becomes critical to survival. Existing desalination techniques are however, energy-intensive and expensive. This is where Energy Recovery, Inc. (ERII), more commonly known as ERI, comes into play with its special device -- PX pressure exchanger that has helped change the economics of desalination.
Using a desalination technique called Sea Water Reverse Osmosis or SWRO, the PX pressure exchanger recuperates up to 98% of the energy that would have otherwise been wasted during the desalination process, and then circles back this energy to drive the SWRO, cutting desalination costs dramatically down from the mid-1960s. The cost of producing a cubic meter of fresh water from seawater has dropped sharply from an average of $10 during the mid-60's to $0.46 by 2005.
About ERI(R)
Energy Recovery, Inc. (ERI) is a leading manufacturer of energy recovery devices, which by significantly reducing energy consumption is helping make desalination affordable. ERI's PX Pressure Exchanger(R)
The company has research, development and manufacturing facilities in the San Francisco technology corridor as well as direct sales offices and technical support centers in key desalination hubs such as Madrid, UAE, Shanghai and Florida. ERI service representatives are based in Algeria, Australia, China, India, Korea, Mexico, Taiwan and the Caribbean.
As the demand for clean, potable water increases; ERI is poised to face the global challenges ahead. For more information on ERI and PX technology, please visit www.energyrecovery.com.
