Aqwise signs cooperation agreement with Mekorot to field-test biological treatment system for drinking water

Aqwise, a Herzliya, Israel-based provider of advanced solutions for wastewater treatment, has signed a cooperation agreement with Mekorot, Israel's national water company, for field-testing an innovative technology for biological treatment of nitrate contamination in drinking water.

The agreement was signed in the framework of WaTech, Mekorot’s entrepreneurship and partnership center for water technologies.

Aqwise has recently begun developing innovative solutions for contaminants removal from drinking water. According to the company, these solutions are based on the unique technology and extensive knowledge that were achieved in the company in the field of biological treatment of wastewater, through the development and implementation of its moving-bed technology, AGAR (Attached Growth Airlift Reactor) process, utilizing biomass carriers.

Nitrate is one of the most common contaminants of groundwater in the world and originates in agricultural fertilization, cesspits and dairy farming. Tens of thousands of wells in the US and in Europe contain Nitrate concentrations that exceed permitted standards. As a result, a significant part of the wells is closed and millions of cubes of potential drinking water are not being used.

Elad Frenkel, CEO of Aqwise, commented “The company engages in constant research and development of innovative technologies for wastewater treatment and is glad to penetrate the drinking water treatment field, thus significantly expending its potential target market. Cost-effective groundwater contamination treatment has a great importance, especially nowadays, when the global water crisis becomes severe. The cooperation with 'Mekorot' is strategic for the company”.

Mekorot CEO Ido Rosilio said, "The collaboration with Aqwise will help Mekorot find an effective and environmentally friendly solution for treating contaminants in drinking water. This solution can help return tens of thousands of cubic meters of clean water to Israel's water reservoirs."

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BotanoCap raises $2.3m to develop environmentally-friendly pesticides

BotanoCap Ltd., an Ashkelon Technological Industries (ATI) portfolio company, has raised $2.3 million from Swiss holding company BHCO Group, a current investor, at a company value of $11.3 million, according to a report in Globes. BotanoCap is developing patented environmentally-friendly pesticides and disinfectants based on microcapsules of essential oils.

BotanoCap is collaborating with Mekorot to develop pesticides for water sources and drinking water. BotanoCap CTO Prof. Arie Markus, vice CTO Paullina Strongin, and Regulatory Affairs Officer Dr. Charles Linder founded the company. Dr. Yigal Gezundhait, the company's CEO, recently participated in the California Israel Chamber of Commerce Cleantech Tour. BotanoCap was profiled on Israel21c last week.

U.S. Army venture fund looks to Israel for water technologies

Christopher Fountas, a General Partner at Arsenal Venture Partners, was recently in Israel to examine the potential for investment in early-stage water technology companies.

Arsenal Venture Partners is a leading venture capital firm focused on the intersection of the commercial and defense markets. AVP manages an early-stage venture capital fund (OnPoint Technologies), and a seed-stage venture fund (MILCOM Technologies). It already has an extensive cleantech portfolio and co-invests with many of the leading venture capital funds and corporate investors in the sector.

According to a report in "Globes", Fountas was invited to Israel by Dr. Orna Berry, a venture partner at Gemini Israel Funds, as well as Chairperson of the Israel Venture Association and former Chief Scientist of the Ministry of Industry and Trade; and Assaf Barnea, CEO of the Kinrot Water Technology Incubator.

Fountas said, "We manage investments in technologies for the US Army to meet needs that arise in wartime, such as during operations in Iraq, and for the government and industrial markets. We've come to Israel with the understanding that it’s a global leader in water technologies."

Joining Fountas on his trip to Israel was Melissa Meeker, a governing board member of the South Florida Water Management District (SFWFD). According to Meeker, Florida is reviewing the establishment of a state venture capital fund for cleantech.

During their visit, Fountas and Meeker met with Mekorot - the Israel National Water Company; executives at venture capital funds including Gemini, Evergreen Venture Partners, and Israel Cleantech Ventures; and Booky Oren, President of the Arison Water Initiative.

Summarizing his visit to Israel, Fountas said, "The water technologies that generally interest us are those that are synergetic to US Army and federal government needs.... All the water sectors relevant to us for investment are found here, from water security through water treatment and management, to desalination."

Mekorot to develop water infrastructure in India

Cleantech.com reports that Jain Irrigation Systems of India and Mekorot, the national water company of Israel, today signed an MOU to work together on water projects in India.

The two companies say they plan to explore projects in desalination, water resource management, water supply, municipal water management and/or wastewater treatment and reclamation projects.

Growing urban populations in India have made existing capacities of water treatment, waste water treatment and recycling inadequate. The country has introduced more stringent pollution control, which is rendering many existing technologies obsolete.

Mekorot is a leader in water resources management, desalination, wastewater treatment and effluent reuse, rain enhancement, water quality, water security and water project engineering.

It supplies 80 percent of Israel's drinking water and 70 percent of its entire water supply, operating 3,000 installations across the country.

Arison Water Initiative completes Dorot acquisition

Arison Water Initiative today completed the acquisition of 96% of Dorot Water Technologies Ltd. for NIS 106 million, reflecting a company value of NIS 130 million, and disclosed details of the takeover, ending months of leaks to media. Kibbutz Dorot will continue to own 4% of the water valves and meters, filters, and irrigation equipment manufacturer, and its CEO, Avi Harpaz, will keep his job.

Arison Water Initiative disclosed that its business plan was approved in June 2007 and that it has been making investments in Israel and other countries since then. Former Mekorot National Water Company CEO Baruch "Booky" Oren is the CEO of the $100 million venture.

Arison Water Initiative said that Dorot Water Technologies, which was founded over 60 years ago, has been growing by 20% a year since 2002 as it established its range of valves and meters for agriculture and municipal water systems. 80% of the company's output is exported. The company has 220 employees.

Last month, Arison Water Initiative made its second investment: a $250,000 venture capital investment in StreamControl Ltd., which develops a comprehensive solution for leakage reduction by pressure management

Blue I raising funds; company is leading developer of water quality control systems

Sources inform ''Globes'' that Shaked Global Group, the private equity firm of the Shaked family - the controlling shareholders of online gambling company 888 Holdings plc - has acquired the 20% stake of Kibbutz Ramat Rachel in Blue I Technologies Ltd. This is the first investment in cleantech by Shaked Global Group, founded by Ohad Shaked. Blue I CEO Tsur Ben-David and Shaked Global Group CEO Shai Onn were not available for comment.

Kfar Saba-based Blue I develops real-time water quality control systems.

The sources added that Shaked Global Group will also participate in a $6 million funding round that Blue I is now holding from current shareholders. The company expects to close this round by the end of March at a company value of $16-20 million before money. The proceeds will be used to finance the company's newly launched platforms, including a comprehensive municipal network water quality control system. Blue I is reportedly about to install the first system in Barcelona.

After the financing round, Blue I plans to enter into a strategic partnership with large international water quality control systems makers. The company already supplies its systems to General Electric Company and Veolia Environnement SA.

Blue I has raised $7 million to date, including $2.7 million in its previous round in 2006, which was one of Israel's most significant cleantech investments that year. In addition to Shaked Global Group, Ben-David and Tene Investments each own 20% of Blue I, Blue Drink (European and Israeli angels led by Blue I chairman Ronen Melnick) owns 18%, and Docor International Management Ltd. and TN Ventures (a private fund owned by Tamar Naor) jointly own 15%. Company employees, including four in China and two in the US, own the rest.

Blue I's Israeli customers include Central Bottling Co. Ltd. (Coca-Cola Israel), Israel Electric Corporation (IEC), Mekorot National Water Company, and Oil Refineries Ltd. Foreign customers include Nestle, an Italian power station, Bayer, and hospitals in France.

In November 2007 it was reported that Blue I will supply real-time water quality control systems for the 2008 Beijing Olympic Games.

Market sources estimate Blue I's 2007 revenue at several million dollars. Under a strategic plan prepared by Ernst & Young, the company plans to grow by 80% this year and by more than 100% in 2009. Ernst & Young declined to respond to "Globes"' questions.

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Ben-Eliezer calls for increased desalination

"Globes" reports that at its weekly meeting, the cabinet reviewed the option of increasing water production at desalination plants at Ashkelon, Hadera, and Palmachim. Last year, the government increased the planned quantity of desalinated water to 500 million cubic meters a year, and ordered the building of two plants, one to be operated by the Shafdan: Dan Region Sewage Reclamation Project in Rishon LeZion, and another plant to be operated by Mekorot National Water Company in Ashdod.

Minister of National Infrastructures Benjamin Ben-Eliezer presented an action plan to address the water crisis in Israel, in the light of the lack of rainfall so far this winter. His plan calls for, among other things, the imposing of restrictions on the watering of public and private parks; a further cut in fresh water quotas for agriculture, and an intensive PR campaign to encourage people to save water.

According to Ben-Eliezer, these moves will not suffice on their own. "The action needed now is to step up the planned building and expansion of desalination facilities," he said. "We're in a difficult situation."

Busy week for water technologies

More than 2000 visitors and 100 delegations from 80 countries worldwide attended the WATEC conference last week in Tel Aviv to survey the latest developments in water and environmental technologies.

Israel is a global leader in the water sector, and a number of new deals and agreements were announced at the conference. Below is a summary.

• Government launches new water R&D program. The Ministry of Industry, Trade and Labor today launched Israel NEWTech - Novel Efficient Water Technologies, the government program to promote Israeli water technologies. The program aims to double water technology exports to $2 billion by 2010.
  

• Mekorot nearing strategic cooperation with GE. Water industry sources inform ''Globes'' that Mekorot National Water Company is in advanced negotiations for a strategic cooperation agreement with General Electric Company (NYSE:GE) for the construction of the $450 million 100-million cubic meter desalination plant at Ashdod.

• Arison unit CEO sees water potential in purified wells. “Israel has 50 million cubic meters of untapped polluted water in the coastal plain alone, which can be treated, thereby saving local authorities a great deal of money, as well as helping raise money for the construction of desalination plants,” says Blue-Green CEO Amir Levi. Blue-Green is a division of the Arison Business Group.
  

• Aquarius CEO urges water start-ups to float shares. “The water industry doesn’t need better technology for the production of drinking water. Today’s technologies are excellent. The challenge is to improve the energy consumption needed to produce water,” says Aquarius Technologies Inc. president and CEO Thomas M. Pokorsky.

• U.S. investor acquires 17% of water management solutions company Arad. US Jewish businessman Bill Davidson is expanding his holdings in Israel and is reportedly acquiring 17% of water measurement and management solutions company Arad Ltd. at a value of $120 million.

• Israel-China 'water-trade' to rise significantly. Israel expects "to significantly increase" its water technology exports to China over the next few years following a successful round of meetings between National Infrastructures Minister Binyamin Ben-Eliezer and Chinese water-technology leaders attending WATEC Israel 2007.

• Israel and Mexico in water treatment deal. The Ministry of Industry, Trade and Labor, and Mexican National Water Commissioner Jose Luis Luege Tamargo have signed a water cooperation agreement between Israel and Mexico, NEWTech - Novel Efficient Water Technologies director Oded Distel told “Globes”.

Kinrot Incubator

Kinrot, an incubator focused on water technologies, has named Assaf Barnea as its new CEO according to a Globes report. Barnea recently served as VP of Business Development at the Mekorot National Water Company and oversaw the establishment of Mekorot's own incubator -- the WaTech Entrepreneurship and Partnership Center for Water Technologies.

Founded in 1993 as part of the Israeli technological incubators program, Kinrot was privatized last year. Based in the Jordan Valley, it has several portfolio companies that operate in the water sector.