Let’s face it – the need for freshwater is rising globally as more and more people are moving to cities, leading to hotter weather. This puts pressure on the largest desalination companies to reduce the water stress. This is where the desalination process comes into the picture.
As water is an essential part of human existence, water desalination makes an excellent opportunity as a long-term investment. 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.
Table of Contents
- Best Water Desalination Stocks to Invest In
- 1. Veolia Environnement S.A. (VEOEY)
- 2. Consolidated Water Co (CWCO)
- 3. Energy Recovery Inc (ERII)
- 4. Acciona SA (ACXIF)
- 5. ACWA Power Co (TADAWUL: 2082)
- 6. SafBon Water Service (300262.SZ)
- 7. Abengoa, S.A. (ABG.MC)
- 8. Hitachi Zosen Corporation (7004.T)
- 9. Doosan Heavy Industries & Construction Co., Ltd. (034020.KS)
- Growth in the Desalination Market
- What are Desalination Stocks?
- Potential Pros and Cons of Desalination Plants
- Pros of Desalination Plants
- Cons of Desalination Plants
- Why Should You Invest in Desalination Stocks?
- How to Invest in Desalination Stocks
- 1. Invest in Individual Stocks
- 2. Invest in Exchange-Traded Funds
- Things You Need to Have to Invest in Desalination Stocks
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)
Market Cap: 25.965 Billion USD
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 as well as 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 data states that Veolia supplied fresh water to around 95 million people in 2020 alone.
The current market capitalization of Veolia is $25.965 billion. The company builds water desalination plants of all sizes. For instance, their reverse osmosis desalination project in Sydney covers around 15% of Sydney’s everyday water requirements.
See Related: Best Climate Change Stocks to Invest in Today
2. Consolidated Water Co (CWCO)
Market Cap: 150 Million USD
Consolidated Water Co. Ltd. builds and runs water treatment & supply plants and water distribution systems. The company works 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.
This shareholder-owned company has a US $150 million market cap and is available to trade on the NASDAQ exchange. Though Consolidated Water Co (CWCO) is a small company, it is profitable and pays dividends, with a current dividend yield of 3.43%.
3. Energy Recovery Inc (ERII)
Market Cap: 1.1 Billion USD
Energy Recovery, Inc. designs, builds, and sells technologies that provide solutions to industrial fluid-flow industries internationally. 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 out with a water desalination plant, in which their PX Pressure Exchanger ERD device utilizes wasted energy in the seawater reverse osmosis desalination process.
As per the data, the company saves around $2.5 billion in energy costs every year to their water desalination clients. The best part is that the devices don’t release greenhouse gas and help lower carbon emissions.
The market cap of Energy Recovery Inc is $1 billion. To invest in ERII stocks, you need valid ID proof. Overall, the entire investing process is online and seamless.
In addition, to check Energy Recovery Inc (ERII) share price, browse here.
4. Acciona SA (ACXIF)
Market Cap: €9.1 Billion
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 per day, enough desalinated water for about 25 million people.
One good thing is that the reverse osmosis technology of ACCIONA 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.
Also, the company has nearly €7.3 billion in sales, €9 billion in market cap, and a 2.70% dividend yield.
Overall, 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.
See Related: Best Renewable Stocks to Invest in Today
5. ACWA Power Co (TADAWUL: 2082)
Market Cap: 73 Billion SAR
ACWA Power is one of the famous developers and operators of power generation and seawater desalination projects in Saudi Arabia.
The company operates through different segments; Water & Thermal Desalination and Renewables. It engages in the distribution and wholesale of desalination water, electricity, and steam.
ACWA Power runs several desalination plants, most of which use the reverse osmosis method. 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 need to contact a share broker who can help you trade foreign shares to invest in this company’s stocks.
6. SafBon Water Service (300262.SZ)
Market Cap: 2.297 Billion USD
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.
In addition, the company has a market cap of $2.297 billion, making it one of the best water stocks for investment. To know their recent stock performance, visit the official website of Yahoo Finance.
7. Abengoa, S.A. (ABG.MC)
Market Cap: 132.744 Million USD
Abengoa is a Spanish company that operates in the water and energy sectors.
The company works through two segments: Concession-Type Infrastructures and Engineering & Construction. It provides technology solutions for 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. Moreover, the company has a 132.74 USD million market capitalization.
8. Hitachi Zosen Corporation (7004.T)
Market Cap: 132.976 Billion USD
Hitachi Zosen Corporation is a Japanese company that engages in the design, construction, and production of desalination plants, waste treatment plants, and water & sewage treatment plants internationally.
The firm operates through varying segments: Machinery & Infrastructure, Environment, and others.
Hitachi Zosen builds a range of 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 anywhere across the world.
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.
The company has a market cap of $132.976 billion. As the demand for fresh water is rising, investing in this company’s desalination stock can be a great deal to make profits.
See Related: Best Hydrogen Fuel Stocks to Invest in Today
9. Doosan Heavy Industries & Construction Co., Ltd. (034020.KS)
Market Cap: 9.33 T USD
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).
The company won a $203.9 million desalination project in Oman in 2018, along with various other projects in the Middle East.
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.
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 are Desalination Stocks?
Desalination is an artificial process that eliminates excess salt or other impurities from saline or seawater to make it fresh. In this process, the water passes through semipermeable, tightly-wrapped membranes under high pressure, separating small water molecules from mineral components.
Desalination stocks are publicly traded companies specializing in the process of desalination. These companies basically provide funds for desalination plants for water purification applications.
Potential Pros and Cons of Desalination Plants
Desalination plants make 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 use of 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 point of discussion worldwide. The data shows that nearly 2.5 billion people experience water stress at least one month a year. As water is a basic necessity and the demand for it 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. That means 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
When it comes to investing in desalination stocks, there are two main ways: invest in individual stocks and invest in 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 for you.
Things You Need to Have to Invest in Desalination Stocks
Whether you’re 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.
On the whole, if you’re looking to invest in water stocks, you may consider investing in any of the stocks mentioned above.
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