Water Money Continues to Flow: Miox to Announce New Funding Soon

The dam is breaking for water companies.

Miox, an Albuquerque-based company that makes systems that disinfect water with salt, has recently raised another round of funding, according to sources. The company raised $14.5 million in January 2007 from, among others, Sierra Ventures. The name has popped up a lot lately.

The funding comes on the heels of an $11.5 million dollar round in July for Halosource. Halosource produces a system in which chlorine and bromine are used to disinfect water. The trick is that the chemicals are captured in beads so drinkers don’t get a chemical-y aftertaste. Earlier this month, of course, desalination company Energy Recovery held its IPO. The stock went out at $8 and is trading in the $11 range. And just yesterday I was speaking to Claude Laval, who told me about a water and energy incubator at Fresno State.

In Miox’s system, electricity converts salt into sodium hypochlorite and/or mixed oxidants, which then get injected into water.  Salt electrolysis has been around for decades—bleach giant Clorox started this way. Miox, however, claims that its onsite equipment is more electrically efficient than conventional products and has been optimized to squeeze the benefits of putting mixed oxidants in water.

Using solids to disinfect has numerous advantages over standard pressurized chlorine gas or bleach.  Delivering chlorine as salt cuts down on transportation and handling costs as well as improves plant safety, according to the company. Tests also show that it prevents fouling of membranes and pipes, which in turn reduces maintenance costs. Standard chlorine can also result in unwanted or dangerous chemical byproducts that have to be eliminated by further processes.

Several VCs have told me the love the concept of investing in water. There’s only a finite amount on the earth and demand is escalating. The tough part is finding good deals. The customer base can also be tricky. Municipal water districts are some of the big customers of this kind of equipment and they move at a glacial pace. Still, agribusiness buys a lot of water equipment.