💧 If you wanted to invest in water, would you buy a water utility or a company that helps it save electricity?
I was intrigued by Energy Recovery $ERII . When seawater is desalinated, the waste brine remains under high pressure. Equipment from $ERII uses that pressure for the next batch of seawater, so the pumps have less work to do. According to the company, this can reduce energy consumption in reverse osmosis desalination by up to 60%.
In October, the company announced an order for a new plant in Saudi Arabia, which is expected to rank among the world's ten largest desalination plants once completed.
What appeals to me about $ERII is that customers can measure the technology's benefits directly on their electricity bill. But I have one reservation. Water is sold every day, while it can take a while to land another large equipment order.
Which would you rather hold for ten years, and why? Shares in a water utility operator, or a technology supplier like $ERII?