Hawaii company taps deep ocean for new business

AP , HONOLULU
Sunday, May 27, 2007, Page 12

A crew of former crab fishermen from Alaska has found a new livelihood in warmer and less dangerous waters off Hawaii, harvesting water from 915m below the surface to use in everything from beer to face creams.

The crew was hired by Deep Ocean Hawaii, a Honolulu-based company that is desalinating deep seawater aboard a vessel off Oahu and then marketing it as an ingredient free of impurities.

The company projects that it can become a US$50 million business in two years, eventually pumping 1.8 million liters of fresh deep seawater a day. It also hopes to develop its shipboard technology as an emergency source for drinking water.

In just a few years, deep seawater already has become Hawaii's biggest foreign export, with four other businesses shipping US$37 million worth of bottled seawater a year, mostly for sale in Japan for up to US$5 a bottle.

DOHawaii the first company that will be exporting the Hawaii water in giant bladders for use in other products, rather than by the bottle.

"We're making ingredients, not the finished product," said Rudy Ahrens, chief executive of DSH International Inc, which operates as DOHawaii. "But this is going to add value to products all over the world."

The benefits and purity of any bottled water over treated tap water have been debated for years as the bottled water industry has expanded globally, but desalinated Hawaii deep seawater offers a special appeal.

It is touted by DOHawaii and other companies as a commodity that is thousands of years old, protected from modern impurities and pollution by a layer of the ocean which separates the warm surface water from colder water near the bottom.

Unlike found above the thermocline layer, deep seawater does not contain hormones, pollution, pathogens or other compounds as the water has slowly migrated from the Arctic, said Hans Krock, professor emeritus in ocean engineering at the University of Hawaii and president of OCEES International Inc, a renewable energy consulting company.

"It's basically water that's been isolated from human influences," said Krock, who also advises and has a small ownership share in DOHawaii.

Independent confirms that deep seawater is more pristine and isolated from chemicals and other human-caused impurities found near the surface of the ocean, said Daniel Repeta, a senior scientist with the Woods Hole Oceanographic Institution in Massachusetts.

But the water could still be affected by materials dropped into the ocean, said Repeta, who has independently studied the deep water off the Big Island.

DOHawaii's Spirit of the North, anchored more than three 4.8km off the west coast of Oahu recently, started filling 19,685 liters bladders installed in 6.1m-cargo containers. Current production is at 302,825 liters of fresh water a day.

Much the crew of the ship has spent the past 25 years in Alaska fishing for king crab, so development of the technology to harvest the water was a new challenge, said Ken Ostebo, president of DOHawaii's maritime operation.

"The idea of deep ocean water is simple, but being able to get it is the key," Ostebo said.

DOHawaii entering a market developed by Koyo USA Corp and other companies based on the Big Island.

DOHawaii cashing in on an unlimited resource and the reputation the islands have as an exotic, isolated spot surrounded by relatively clear and clean waters.

Ahrens beer companies want to develop "Hawaiian deep-ocean brews" and health and beauty businesses are searching for purer water for cleansers, face creams and other products. Companies producing sauces and juices and those packaging products such as tuna have also shown interest and some local hotels plan to use the water in their spas, he said.

The company has inked contracts with a bottling company in Taiwan and with Deep Ocean Enterprise, which creates packaging for companies wanting to sell bottled water.

DOHawaii also in talks with a major US beer company and another brewery in Japan, cosmetic companies on the mainland and in Europe, as well as hotels, said Ahrens, who has a background as a merchant banker.

After researching other methods for nearly four years, DOHawaii developed a new system which lowers a hose into the ocean and then pumps it onto a moored boat. The water is then desalinated through reverse osmosis, packaged in the cargo containers and lifted onto a barge, which travels back and forth to the shore.

On the Big Island, the state, as a commercial venture, pumps the water using a 915m pipeline and then transports it to the companies, which do the desalination, filtering, bottling and packaging.

Four already selling the water, and other enterprises are planning to enter the market, said Ron Baird, chief executive officer of the National Energy Laboratory of Hawaii Authority. A Maui company uses that water to make a vodka called Ocean.

Ahrens retired veteran Air Force pilot Rich Treadway to serve as his chief operating officer after meeting him during a flight from Honolulu to Los Angeles. Treadway said he hopes to develop a market with the military, which spends millions of dollars to get water to troops in desert areas.

Ahrens a future focus of the company will be on emergency relief, as water becomes scarce.