Iran war’s next humanitarian disaster — lack of water
Plus, Octopus expansion in California continues with second investment in carbon removal firm
As we enter week three of the Iran war, oil prices remain high and markets churn on any headlines from the Strait of Hormuz. But a far greater disaster than disruptions to oil supplies threatens the Middle East if the war drags on much longer — a lack of water.
Iran is one of the most water-stressed countries in the world and almost had to evacuate Tehran four months ago as authorities said a five-year drought was bringing it close to what’s called Day Zero, in which there is not enough drinking water to sustain the population.
Other cities have come close to Day Zero in the past five years. Cape Town, South Africa, for instance. Or Chennai, India, or even Mexico City. Corpus Christi, Texas is facing catastrophe right now as it suffers from a major drought, according to reports.
But the war makes things in the Middle East even worse, as many countries rely on expensive and sophisticated desalination plants to provide water to populations too large for the desert environment.
Desalination plants are supposedly off limits from attack because of the humanitarian risk, but already in the first few weeks two plants — one in Iran and one in Bahrain — have been hit by drone missiles.
Iran reportedly responded to a hit to its plant from the U.S. with a hit to the plant in Bahrain. Several other plants operate within range of its missiles in a half dozen other Middle East countries, each of which would create an immediate humanitarian crisis if destroyed.
While Middle East countries in the past have shared water reserves with each other in times of drought, this is not guaranteed in the middle of a major regional war. The crisis is made even worse by attacks on oil facilities that can lead to pollution in available water supplies, or by the fact that many desalination plants are located next to energy facilities that are targets.
War strategists have always speculated that Iran closing the Strait of Hormuz would be the single most dangerous thing it could do if attacked. But the longer the war goes on, and the more water becomes the country’s top vulnerability, the desalination plants will become priorities — and possible targets.
Octopus boosts U.S. growth with California carbon removal deal
. . . . Octopus Energy, the British renewable energy giant which pledged two months ago to invest up to $1 billion in green technology in California said last week that its investment arm will expand a carbon removal deal with Pleasanton-based Cultivo Land to help identify nature-based areas around the world to help lower emissions.
The $60 million investment from Octopus Energy Generation expands the carbon removal partnership between the two companies to $100 million and follows a direct investment by Octopus in a Cultivo funding round last year.
The deal, coming at a time when the Trump administration in the U.S. is attacking California on everything from offshore oil drilling to vehicle emission regulations, illustrates that green capital continues to flow to carbon removal technologies and projects despite the shift in political winds.
As the latest energy crisis spurred by the Iran war hits oil prices and other energy, some investors are acting as if they think the war on green investment projects might be nearing an end in Washington. Indeed, some offshore wind projects are already back in action.
Octopus, from its perch in the UK, seems also to be spreading its bets outside Britain as energy security and prices continue to roil the ruling Labour Party at Westminster.