ASX cleantech is all the rage. Here’s how to get exposure to water stocks - Getty Images

ASX cleantech is all the rage. Here’s how to dip your toes into clean water stocks

Tech

2 hours agoMarch 16, 2021 | Eddy Sunarto

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Investment in water seems to be a no-brainer. After all, water is essential for life, and safe drinking-water and sanitation are crucial to human health and well-being.

The numbers are also mind-boggling. According to the World Health Organisation (WHO), by 2025, half of the world’s population will be living in water-stressed areas, those with a lack of water supply or drinking from water sources contaminated with faeces. Nearly a million people also die each year from drinking unsafe water, mainly in less developed countries.

And as the world’s population grows, the price of clean water is expected to increase given the limited supply available.

In Australia, droughts are a major feature of the environment, and causes water shortages, environmental degradation, and loss of livestock and crops. Solutions to counter these problems are very much in demand.

There are fortunately, ample opportunities to get exposure into the water industry on the ASX.

The two big players in the market are Reece (ASX:REH), and Reliance Worldwide (ASX:RWC). Although the share prices of both companies have surged by 80 per cent and 90 per cent respectively, they are not pure water plays as they conduct other businesses across the whole supply chain.

There are however, small cap cleantech stocks on the ASX that you might consider to get direct exposure to water.

We’ve named five of these water stocks below.

Clean TeQ (ASX:CLQ)

Clean TeQ is a company focusing on water purification and recycling, and has been making news recently. The company undertakes significant research and development into new water treatment technologies, and is pursuing the development of graphene oxide membranes for water purification.

It was recently awarded a contract for a water treatment plant upgrade in Oman, and has just signed a contract with a coal mine in China to install its Bionex water purifier technology.

Although it reported a $10.13 million loss for the half, its share price has risen by more than 100 per cent in the past year.