Israel Innovation 2.0

Headlines related to the Eilat Eilot Renwable Energy Conference dominated this past week. Israel Cleantech Ventures filed with the SEC that it is about half way to raising $100 million and the cities of Jerusalem and Chicago formed an environmental partnership. In the IT sector CSR bought Israeli imaging and video technology company Zoran for $679 million. For these stories and more, see this week’s headlines below.

Cleantech
1. The Holy City & The Windy City To Form Historic Environmental Partnership
“We need mammoth human collaboration in order to surmount our global environmental problems. And let’s face it, we have a few of those: coral reefs potentially a thing of the past by 2050, oil set to peak just as the demand for it increases, and water- the source of all life – already a luxury commodity in places like Yemen. But it isn’t over till it’s over. In recognition of their numerous challenges, but determined to overcome them, two cities are planning to create mutual solutions. Chicago and Jerusalem will soon announce their new “green” friendship…”

2. Israel and Poland sign agreement on water, energy (Roundup)
“Israel and Poland signed a joint declaration of cooperation on water supply and sustainable energy technology Thursday, as the two countries held a joint cabinet meeting that Israeli premier Benjamin Netanyahu said would strengthen ties…”

Investment and Economy
3. Israel Cleantech Ventures Raising $100 Million for Energy Innovation
“Israel Cleantech Ventures, the tiny but talented nation’s first cleantech-focused fund, is now more than halfway to raising a $100 million fund, according to a filing this week…”

4. CSR buys Israel’s Zoran for $679m
“The British company CSR has agreed to buy Israeli imaging and video technology leader Zoran in a $679 million all-share deal. The sale is expected to be completed in the second quarter of 2011…”

5. 4 Israeli Firms Headed to $1 Billion
“A $1 billion market capitalization is the dream of every entrepreneur who makes it to an IPO. Generally, the entrepreneur begins dreaming of that target after the company first passes the milestone which is considered the most difficult on that path — sales of over $100 per year…”

Information Technology
6. MoMonis Mobile Game Development Studio Launched
“Last June, TheWadi published an article about MoMinis, a promising start-up that was busy creating a mobile game development suite that would enable those who lack special programming skills to create, convert and market cross platform mobile games. Well, the wait is over, and MoMinis Beta stage has matured into a publicly available offering…”

Miscellaneous
7. Palestinians turn to technology to avoid roadblocks
“Adopting an attitude of “If you can’t beat’em, go around’em,” Palestinian computer programmers have developed a simple text-messaging system to help cope with surprise or crowded checkpoints set up by the Israeli army across the West Bank…”

8. EZchip Could Be an Acquisiton Target for Marvell: Analyst
“Israel-based EZchip Semiconductor Ltd. (NASDAQ: EZCH) is an acquisition target for a handful of communication integrated circuit companies and could be a logical fit with Marvell Technology Group (NASDAQ: MRVL), an analyst at Benchmark Capital wrote in a note to clients…”

9. Citi sees $5b gas revenue for Israel
“Citi Global Markets analyst David Lubin predicts a rosy future for Israel. He says, “Gas could eventually contribute about $5 billion per year to Israel’s balance of payments, at current prices…”

Israel’s TaKaDu and SolarEdge have developed solutions in the water and solar fields that make current technologies more efficient.

Israel’s TaKaDu and SolarEdge have been named Red Herring Europe 100 winners for 2010. The two cleantech companies are among eight Israeli startups to have made the list which considered financial performance, technology innovation and execution of strategy and other criteria.

Here’s a closer look at both companies:
continue reading…

During the week of May 23, 2010, Soluto, an “anti-frustration” software for making PCs more efficient, won the first TechCrunch Disrupt conference. Soluto is the latest Israeli startup to find success at a TechCrunch conference. Israeli and Taiwanese experts met in Taipei to discuss water technology and Israel’s highways are to go green, including wind-powered lighting. For these stories and more, see this week’s headlines below.

Cleantech
Taiwanese, Israeli water technology experts meet in Taipei

Wind-powered lighting for the highway

Sahara joins hands with Israeli co for solar plant

Investment
Netanyahu Says Israel in OECD Will Bring Investment (Update1)

Information Technology
Soluto Utility Shrinks PC Boot Times, Fixes Problems

Related: Israel’s Soluto Wins TechCrunch Disrupt

GoMidjets is Awarded IBM’s 2010 Beacon Award

Miscellaneous
Fox buys Israeli sitcom ‘Ramzor’

Why People Don’t Like Virtual Conferences

Over the past few Fridays, I have been exploring water technology in Israel and giving examples of why this is an emerging field for Israel and Israeli companies. So far, I have briefly explained the origins of this field in Israel and listed some government and VC initiatives that are helping this field emerge. To complement last week’s summary of current investment activities in Israel that will help make Israel known as the leader in water-technology solutions internationally, this week’s edition will detail the technologies that Israel has applied and excelled in over the years.

To begin with, according to the WATEC website, Israel has come to stand out in recent years for having the:

* The world’s largest RO (reverse osmosis) desalination plant
Located in Ashkelon, this plant is internationally recognized as the most advanced in seawater reverse osmosis. A synthetic membrane rejects salt while it passes fresh water at “reasonable flow rates and realistic pressures.” Though this technology has been around since 1959 in the United States, in recent years it has been widely adopted by Middle Eastern countries, with Israel emerging at the forefront with its highly advanced plant that is run by IDE Technologies, Ltd. The plant has attracted attention for producing 100 million m3/year at one of the lowest prices in the world. In doing this, the plant produces around 13% of the country’s domestic consumer demand – equivalent to 5–6% of Israel’s total water needs.

Overall, the plant provides:
* adequate pre-treatment
* a high-pressure pump and an efficient energy recovery system
* a membrane assembly
* post treatment (if necessary)

* The world’s most developed irrigation methods
66% of Israel is considered arid. The lack of water resources in these areas (mainly Southern Israel) has been the main inspiration for farmers to try new, innovative irrigation techniques to make the desert blossom. Probably Israel’s field with the most advancements when it comes to water technology, drip irrigation is the main method used to conserve water while making sure that plants and and farming land get enough water. According to the Israeli Government’s export Website,

“drip irrigation is the most efficient method as regards water saving. Since the drippers emit the water directly to the soil adjacent to the root system, which absorbs the water immediately, evaporation to the air is minimal. This effect is especially important under the conditions prevailing in arid zones.”

Additionally, the Website goes on to explain that unlike other methods, drip irrigation “makes it possible to utilize saline water by eliminating direct contact between the water and the leaves, thus avoiding burns.” It also “allows the use of sewage water because the water is delivered directly to the ground, minimizing health risks.”

While desalination and drip irrigation are more mature water areas with established revenue streams that are growing, Israel’s water industry is also becoming known for having “the world’s highest reused wastewater rate,” and “the world’s most advanced national water management system.” With Israel’s continued focus on becoming the “Silicon Valley” of water technology title, several Israeli companies in these areas are starting to get heightened attention from both the media and investors. Don’t miss next Friday’s entry on which Israeli companies you should watch out for in this field in the next few years.