One of my favorite emcees is Mos Def. A while ago, he made a song titled “New World Water” on his first album. Now fast forward to 2014 and we realize that the record is more than just a song.
Water is a natural resource made available to all inhabitants on Earth. Many believe that the accessibility and availability of water is a human right. Now may be the time to reexamine these premises and assertions. Are you aware that the GLOBAL WATER SUMMIT OF 2014 just concluded this past April in Paris, France? Were you aware that they have GLOBAL WATER SUMMITS?
This summit is the “Who’s Who” of global executive leaders, private equity firms, hedge fund managers, technology strategists, and infrastructure development experts. Yes, the water we know, need, and love is currently being speculated on for venture capital investments as an emerging market.
The itinerary of the summit consisted of 45 sessions that addressed desalination, advanced water treatment technologies, water transport, developing public policies for urban water use, and devising sustainable water solutions in: Africa, Singapore, Israel, India, Australia, Canada, Hong Kong, Malaysia, Netherlands, Saudi Arabia, Spain, Pakistan, and Bahrain.
Here are 5 titles of the 45 sessions that were presented
1. Water’s impact on Profitability, New Metrics Underpinning Investment in Water Management Programmes
2. Water conflict and peacemaking in Future Cities
3. Venture Capital Investments in Water: Ingredients to success
4. Technology investor focus: Which water treatment technologies are getting investors’ attention and why
5. Competition in the urban water supply chain: What are the emerging trends?
This is the lexicon of speculators. It sounds more than just sustainability and environmental conservation.
Why is this important?
Globally and domestically, there are companies and individuals that are buying up water rights. What are water rights? When you purchase property, people typically think of acreage, square feet, and overall perimeters they will own. However, real estate savvy individuals recognize the importance of what is below your land. Your property may be pregnant with gold, oil, coal, water, and more. You can purchase the rights to own those resources below your property.
Some people own property but someone else may own the water rights to the H2O beneath it. Bloomberg Businessweek produced an article that detailed how the Royal Dutch Shell is buying groundwater rights in Colorado, Nestle is purchasing water rights throughout America, and investors in Australia are buying water rights and reselling it to farmers at a marked up value.
The article also details how an old Texas oil tycoon, T. Boone Pickens, owns 68,000 acres in the Texas Panhandle that sits on the Ogallala Aquifer that contains a QUADRILLION gallons of water. He projects that he will eventually sell 65 billion gallons a year to Dallas.
This is important because government agencies forecast that the demand for water will exceed the supply by 40 percent by 2030. The demand is based on increased population, climate change, urbanization, and industrialization. The principle basis of economics is scarcity. How do you manage scarce resources, and match it with the demand of the public, while making a profit? Throughout America, water rights are being purchased like home foreclosures. This is occurring in Florida, Texas, California, Colorado, Connecticut, and other states.
The proposed technology and infrastructure
The proposed and current technological processes deal with desalination of ocean and seawater. This process is similar to hemodialysis. Water filtration plants are being built and renovated throughout America. The filtration plants will suck up ocean water and filter out the salt content so that it’s suitable and safe for human consumption and redeposit the remaining salt back to the ocean.
There is also reverse osmosis. This process is being used and heavily proposed nationwide. This takes groundwater, sewage waste water and systematically separates the particulate matter, contaminants, microorganisms, pharmaceuticals, and carcinogens and then passes them through ultrafiltration membranes, ultraviolet lights, and ozone to “purify” it. I encourage you to read everything on your bottle of Dasani, that’s all I will say.
Furthermore, according to three different stories in USA Today, The Huffington Post, and The Washington Times, the U.S. Navy has confirmed that they’ve developed a method that can convert seawater into jetfuel. We all know our country’s thirst for war (no pun intended).
Proponents for reverse osmosis feel that it’s safe for consumption, but currently many companies and utilities use it for agricultural irrigation, toilet, bath, cleaning, industrial needs (thermonuclear energy, semiconductors, and etc.).
It’s all about the Benjamins Baby
The Environmental Protection Agency said that America will need to spend at least $380 billion to upgrade the nation’s water infrastructure. This is why you have Private Equity Firms like Blackstone in attendance at the summit. The Clark County Water Reclamation District is currently estimating spending $585 million to construct a 17 mile long water pipeline to supply Las Vegas. California constructed a $481 million Groundwater Replenishment System that conducts reverse osmosis. In the U.K., a water service provider was propositioned by a conglomeration of Kuwaiti, Canadian, and British investors for $8 billion. In Melbourne, Australia a company named Tandou Ltd has approximately $30 million in water rights. Nikko Asset Management, a Tokyo based subsidiary tried to raise $100 million from Australia for water funds. A utility company called, Canadian River Municipal Water Authority purchased 43,000 acres of water in Texas for $14.5 Million.
The story gets even deeper… Stay tuned for “The New World Water Part 2.” This is too much info for one article.
Global Water Summit 2014 Itinerary link: http://www.watermeetsmoney.com/agenda
Rapper Mos Def was prophetic (Youtube link) New World Water, listen closely: http://youtu.be/IxvQKZPb6Wo
