Let’s face it—the need for freshwater is rising globally as more people move to cities, leading to hotter weather. This puts pressure on the largest desalination companies to reduce water stress, which is where the desalination process comes into the picture.
As water is an essential part of human existence, water desalination is an excellent long-term investment opportunity. If you’re looking to invest in desalination stocks, you’ve come to the right place.
This post will discuss everything you should know about desalination stocks to make the right investment decision. So let’s get started.
Best Water Desalination Stocks to Invest In
Here’s a list of some leading publicly traded desalination or clean water companies that enable investors to trade their shares. Let’s take a quick look for details.
1. Veolia Environnement S.A. (VEOEY)
Veolia Environnement S.A. designs and offers energy, waste, and water management solutions worldwide. The company manages the production and delivery of fresh drinking water and the collection, treatment, and recycling of wastewater.
Veolia provides drinking water to 100 million people and wastewater services to 61 million people. The company operates around 2,300 water treatment projects in more than 100 countries.
Also, though Veolia is not a pure-play water desalination stock, it is a renowned name in the industry. With a water purification capacity of 13 million m3 per day, the company builds water desalination plants of all sizes. For instance, its reverse osmosis desalination project in Sydney covers around 15% of Sydney’s everyday water requirements.
Veolia Environnement S.A. (VEOEY) is a profitable long-term investment option. For the latest Veolia Environnement S.A. stock quote and performance, refer here.
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2. Consolidated Water Co (CWCO)
Consolidated Water Co. Ltd. builds and runs water treatment and supply plants and water distribution systems. The company operates through four segments: Bulk, Retail, Manufacturing, and Services.
CWCO uses reverse osmosis desalination technology to generate potable water from seawater. The company operates around 11 water production facilities in the British Virgin Islands, the Cayman Islands, and the Bahamas, with a total water treatment capacity of 25.5 million gallons.
Consolidated Water Co produces and distributes water to government-owned distributors and end-users, including commercial, residential, and government customers. Though Consolidated Water Co (CWCO) is a small company, it is profitable and pays dividends.
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3. Energy Recovery Inc (ERII)
Energy Recovery, Inc. designs, builds, and sells technologies that provide international solutions to industrial fluid-flow industries. This company operates through two segments: Water and Oil & Gas.
ERII makes energy recovery devices to help industrial companies lower energy expenses. The company started with a water desalination plant, in which their PX Pressure Exchanger ERD device utilizes wasted energy in the seawater reverse osmosis desalination process.
The data shows the company saves around $2.5 billion in energy costs yearly for their water desalination clients. The best part is that the devices don’t release greenhouse gases and help lower carbon emissions. Overall, the entire investing process is online and seamless. In addition, to check the Energy Recovery Inc (ERII) share price, browse here.
4. Acciona SA (ACXIF)
ACCIONA is one of the leading water infrastructure businesses, serving areas worldwide suffering from the highest levels of water stress. This Spanish conglomerate manufactures and invests in water, energy, finance, and other projects.
Though ACCIONA is not a pure-play desalination firm, it designs and builds reverse osmosis desalination plants. These plants can clear around 5 million m3 daily, enough desalinated water for about 25 million people.
One positive aspect is that ACCIONA’s reverse osmosis technology is less energy-intensive, more efficient, and has a minimal carbon footprint compared to traditional thermal desalination procedures.
For instance, their reverse osmosis desalination releases 6.5 times fewer greenhouse gases than conventional desalination methods. The company has introduced several desalination plants in different countries, making it a good choice for desalination investment. Check here for the latest updates about their stock price or other details.
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5. ACWA Power Co (TADAWUL: 2082)
ACWA Power is one of the famous developers and operators of power generation and seawater desalination projects in Saudi Arabia.
The company operates through two segments: Water & Thermal Desalination and Renewables. It distributes and wholesales desalination water, electricity, and steam. ACWA Power runs several desalination plants, most of which use reverse osmosis. These plants treat around 6.4 million m3 of water per day.
If you feel comfortable investing in a Saudi Arabian company, this company could be an excellent pick. As the firm doesn’t have a U.S. listing, you must contact a share broker who can help you trade foreign shares to invest in this company’s stocks.
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6. SafBon Water Service (300262.SZ)
SafBon Water Service offers water treatment services in China. The firm provides industrial wastewater desalination solutions, including lime technology for reclaimed water treatment, membrane bioreactor technology for reclaimed water treatment, and more.
SafBon Water Service also provides ceramic flat membranes, eliminating pollutants like microorganisms and particles to produce freshwater free from toxic and biological hazards. Moreover, their dissolved air flotation systems treat water and wastewater. To know their recent stock performance, visit the official website of Yahoo Finance.
7. Abengoa, S.A. (ABG.MC)
Abengoa is a Spanish company that operates in the water and energy sectors. The company has two segments: Concession-Type Infrastructures and Engineering and construction. It provides technology solutions for the water and energy sectors in Europe, South America, North America, Asia, and the Middle East.
Abengoa has constructed over 30 desalination projects in different regions across the globe. These plants produce industrial and drinking water through seawater’s traditional and advanced membrane procedures. Also, Abengoa’s freshwater installed capacity is nearly 1.7 million m3 per day, whereas another 2.6 million m3 per day is under construction.
8. Hitachi Zosen Corporation (7004.T)
Hitachi Zosen Corporation is a Japanese company that designs, constructs and produces desalination plants, waste treatment plants, and water and sewage treatment plants internationally.
The firm operates through varying segments: Machinery & Infrastructure, Environment, and others. Hitachi Zosen builds various water-related facilities, including desalination plants and sludge recycling centers.
The company and its subsidiary have fast-track emergency containerized saline water desalination plants that can be moved to clients’ sites worldwide. Also, Hitachi Zosen has acquired shares of Osmoflo, a leading company for desalination and wastewater treatment.
You may say that Osmoflo has become a subsidiary of Hitachi Zosen Corporation. As the demand for freshwater rises, investing in this company’s desalination stock can be a great way to profit.
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9. Doosan Heavy Industries & Construction Co., Ltd. (034020.KS)
Doosan Heavy Industries provides integrated desalination, energy, and power generation solutions. This South Korean conglomerate has an impressive portfolio in water treatment, including Reverse Osmosis (RO), Multi-Effect Distillation (MED), and Multi-Stage Flash (MSF).
Doosan Heavy Industries is a global leader in water purification systems and wastewater treatment technology for industrial and infrastructure markets. The company has been producing desalinated water to fulfill people’s water needs. You may check their current desalination stock price here.
What are Desalination Stocks?
Desalination is an artificial process that makes saline or seawater fresh by eliminating excess salt or other impurities. The water passes through semipermeable, tightly wrapped membranes under high pressure, separating small water molecules from mineral components.
Desalination stocks are companies that specialize in the production and distribution of desalination technologies and services. These companies treat saline water to make it suitable for human consumption and industrial use.
Investing in desalination stocks can be a good option for those interested in supporting sustainable water management practices and potentially profiting from the growing demand for clean water solutions. Some of the top desalination stocks include Consolidated Water Co. Ltd., IDE Technologies, and Doosan Heavy Industries & Construction Co. Ltd.
Are desalination companies a good investment?
Desalination companies are a viable investment option for those interested in the water industry. With freshwater scarcity becoming increasingly pressing, the demand for desalination technology is expected to rise. Additionally, advancements in desalination technology have made the process more cost-effective, making it a potentially profitable industry to invest in.
Growth in the Desalination Market
Due to innovative technologies, the global water desalination industry is expected to reach USD 39 billion by 2028. Considering the expansion of desalination plants over the past few years, the market has a strong future.
That means investing in desalination companies can be a great deal to make good money and support the environment. However, it is essential to consider all aspects of desalination before investing in it.
What is the most promising desalination technology?
Desalination technology removes salt and other minerals from seawater or other saltwater sources to make it suitable for human consumption.
The most promising desalination technology is Reverse Osmosis (RO), which uses a semipermeable membrane to filter out salt and other impurities from seawater. RO has become the most popular and widely used desalination technology due to its high efficiency, low energy consumption, and reliability.
Potential Pros and Cons of Desalination Plants
Desalination plants have both positive and negative environmental impacts. In this section, you will come across some of the benefits and drawbacks of desalination plants.
Pros of Desalination Plants
- Desalination plants can provide fresh water in regions with no natural potable water supply.
- Water movement from desalination can be used to create more energy.
- Desalination is an excellent way to offer more water independence to communities.
- Desalination facilities can benefit different industries.
- Desalination provides filtered water, which is safe for use in the irrigation of plants.
- Desalination could build a future water reserve for the next generation.
- Desalination is a great way to eliminate or reduce issues in the food supply chain.
Cons of Desalination Plants
- The desalination process produces chemical waste, which needs to be disposed of to keep the environment and people safe.
- Desalination requires unlimited saltwater to be boiled at very high temperatures to make it potable.
- Desalination plants are expensive; their installation and operating costs are high.
- They consume a significant amount of power or energy to produce usable water.
- The process can eliminate all the nutrients available in water during reverse osmosis, including calcium, potassium, and magnesium.
Why Should You Invest in Desalination Stocks?
Water scarcity is already a topic of discussion worldwide. Data shows that nearly 2.5 billion people experience water stress at least once a year. As water is a basic necessity and its demand will hardly fall, the desalination industry is estimated to reach $32 billion by 2025.
Since 97.5% of the world’s water is saltwater, desalination seems like one of the apparent solutions to boost the supply of fresh, drinkable water. Also, many companies across the globe are making desalination investments to turn saltwater into freshwater.
Investing in desalination companies’ stocks can be an excellent, long-term investment deal. Overall, keeping the rising demand for water in mind, desalination or water stocks are often considered safe and lucrative investment options.
How to Invest in Desalination Stocks
There are two main ways to invest in desalination stocks: individual stocks and ETFs (Exchange-traded funds).
1. Invest in Individual Stocks
This is a perfect way to reap high returns, but it also includes greater levels of risk. As you may know, the desalination share market is quite volatile, and there are several gains and losses in investing in individual stocks.
2. Invest in Exchange-Traded Funds
An ETF is a professionally managed combination of bonds, shares, and other securities. It is made up of a range of different investment types. ETFs usually provide modest returns compared to some individual stocks. However, they are safer than individual stock investments. So, if you’re not a risk-taking person, investing in ETFs is a better option.
Things You Need to Have to Invest in Desalination Stocks
Whether investing in individual stocks or ETFs, you need to consider the following things to invest appropriately.
- Create a valid investment account.
- Know how much money you can invest initially and all year long.
- Search for brokerage firms and pick the best with minimal fees and a hassle-free account management system.
- Set up recurring investments, weekly or monthly, to generate long-term wealth.
If you want to invest in water stocks, you may consider investing in any of the abovementioned stocks.
FAQs
Who is the largest producer of desalination?
Desalination is the process of removing salt and other minerals from seawater to make it suitable for human consumption. The Kingdom of Saudi Arabia is currently the largest producer of desalination in the world. The country produces over 5 million cubic meters of water daily, accounting for approximately 20% of the world’s total desalination capacity.
Are desalination companies a good investment?
Desalination company’s stock is a potentially good investment opportunity. These companies specialize in removing salt and other minerals from seawater to make it suitable for human consumption or industrial use. With the increasing demand for clean water, especially in arid regions, desalination companies are poised for growth.
However, investors should consider factors such as the cost of desalination technology, regulatory hurdles, and competition from alternative water sources before making investment decisions.
What is the largest desalination company in the US?
The largest desalination company in the US is IDE Technologies. IDE Technologies is a global leader in water treatment solutions with over 50 years of experience in providing advanced water treatment solutions. They specialize in desalination, industrial water treatment, and water reuse.
Who are the market leaders in desalination?
Desalination is the process of removing salt and other minerals from seawater to make it potable. The market leaders in desalination are companies that have a significant market share in the desalination industry. Two of the top market leaders in desalination are IDE Technologies and Doosan Heavy Industries & Construction.
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