It's been a good month for Energy Recovery. The company, which makes energy efficient systems for desalinating seawater, pulled off an IPO in the beginning of July in the middle of a swoon on the stock market. The stock is trading in the $11 range, or 40 percent plus the initial price. Ironically, the IPO took place a day after there was much hand-wringing about the lack of IPOs. And since then, it's announced two big deals. The company will supply equipment to the Hadera Sea Water Reverse Osmosis Desalination Plant going up near Haifa, Israel. The plant, being built by IDE Technologies, will open in 2009. Initially it will be capable of converting 100 million cubic meters of sea water into drinking water a year. Eventually, it could be expanded to 130 million cubic meter. ERI will also participate with IDE on the expansion of a desalination plant on Cyprus. Today, meanwhille, Singapore's Hyflux said it will adopt the company's PX Pressure Exchanger for a desalination plant in China. Desalination is a great idea, but it remains an expensive way to produce water. It takes quite a bit of pressure to get the water through the membrane, and over time the membrane can foul up and clog. ERI helps lower the energy costs by converting the pressure in the wastewater into electricity. Other companies like NanH2O are working with better membranes. Todd Kimmel, of Advanced Technology Ventures, is among the many in Silicon Valley scouting for water deals. He's particularly hot on desalination, he told me in a meeting yesterday. 98 desalination projects have been launched in the last three years. The tough part of the market, however, is that utilities are some of the main buyers. They aren't known for being speedy. "The value of water goes up when you don't have it," he said.