Israelis make millions from water tech
Israeli companies sell purification technologies for drinking water, agriculture and manufacturing for some $2 billion in 2012. 'This is one of the future growth engines,' says Export Institute CEO
IEICI CEO Ofer Sachs estimates that in 2013, the Israeli figure will climb to $2.2 billion.
"The scope of the global water market is some $700 billion," he explains. "Most global investments in the water industry are channeled towards building and upgrading infrastructures in Latin American countries, the Far East countries and Africa."
According to Sachs, "Israel's water industry is considered one of the future growth engines of Israeli exports. We are talking about an inexhaustible reservoir of exporting products, services, knowledge and technology from Israel.
"This is a market which combines the traditional industry that employs tens of thousands of workers in production facilities and advanced high-tech technologies, and innovative startup companies which are increasingly turning to this developing field."
According to IEICI figures, some 280 companies operate in the Israeli water industry, and 150 of them are involved in exports. The 20 leading exporters in the Israeli water industry had exports worth some $1 billion in 2012 – about 50% of the volume of exports in the industry.
Filtration of sea water in Singapore (photo courtesy of Amiad Water Systems)
According to international studies, the global population is expected to grow from 6.9 billion people in 2010 to 8.3 billion people in 2030. This figure is expected to increase the demand for the production of water, both for direct personal consumption and for the consumption of energy and agriculture and the food industry, due to the expected increase of 50% in the demand for food.
The human water consumption does not just include drinking and hygiene. In fact, the consumption for the production of food and energy is the most significant.
For example, according to the Water Footprint Network organization, the amount of water required for the consumption of one slice of bread is 40 liters. The amount of water required for 1 kilogram (2.2 pounds) of wheat is 1,300 liters. The production of a sheet of paper requires 10 liters of water, and the production of 1 megawatt per hour of electricity requires 30,000 liters of water.
'Israeli products in every continent'
One of the Israeli companies operating in the water industry overseas is Amiad, which is based in a kibbutz by the same name in northern Israel. The company has been active in the field for 50 years now and its shares are traded on London's AIM Stock Exchange. Amiad provides filtration solutions for irrigation, manufacturing, the oil industry, etc.
According to Amiad CEO Arik Dayan, "Although the water technology export figures are encouraging, we must not get caught in complacency and slow down the pace.
"The successful Israeli products are in every continent on earth these days, and many countries see the success and want a share of the market. In China, Korea and India there is today an entire generation of brilliant engineers, a developed industry and a welcoming economy.
"We are not the only wise people around, and in a global world it's easier and simpler to copy products and technology. Creativity and innovation, on the other hand, are much more difficult to duplicate."
In the past two years, Amiad has been focusing on implementing water technologies in third world countries. In Angola, the company operates a system supplying clean water for domestic and agricultural use. In Vietnam in 2012, it performed a project of purifying drinking water from a local lake using a special system of filters.
In India, in the state of Maharashtra, the company was involved in a water filtration project for agricultural use (irrigation pipes) in 2012. In Dominica, an island in the Caribbean Sea, the company launched a project for treating river water in order to supply the capital city of Roseau with clean drinking water for local residents and for cruise ships arriving on the island.
The Watec 2013 conference was initiated by the Israel Trade Fairs and Convention Center and held in cooperation with the Economy Ministry, Foreign Ministry and IEICI. The companies participating in the conference included Netafim, Tahal, Dorot, Blue I and Strauss Water.
