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The Honolulu Advertiser
Posted on: Tuesday, November 7, 2006

Deep-sea water bottler operating off O'ahu

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By Sean Hao
Advertiser Staff Writer

The barge: It is a key part of DSH International's plans, allowing it to reduce production costs by operating off the O'ahu shore.

D.O. Hawaii

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Hawai'i's deep-sea water industry has a beachhead on O'ahu.

Until now the booming water bottling business was based on the Big Island at the Natural Energy Laboratory of Hawaii Authority, which operates a pipeline that descends thousands of feet into the waters off Kailua, Kona. However, demand for the water, which sells for up to $6 a bottle, has prompted one company to seek its fortune elsewhere.

DSH International Inc. this week plans to export its first cargo containers of desalinated deep-sea water pulled from the depths four miles west of Ko Olina. The company pumps the water from a depth of 2,000 feet, removes the salt and then fills plastic-lined cargo containers that can hold 5,200 gallons of water.

"The potential is absolutely huge," said Rich Treadway, a spokesman for DSH, which operates as D.O. Hawaii. "In our estimation, water will be one of the great products produced in Hawai'i for many years to come. We're at the very toe of an industry."

Hawai'i's deep-sea water industry, which sprang up about three years ago, has been a boon for the state, creating an estimated $100 million in capital investments, 100 jobs, and drawing hundreds of thousands of dollars in royalties from a previously untapped natural resource. Just how big the industry will get remains to be seen. At present, four Hawai'i companies sell deep-sea water, and exports of drinking water from Hawai'i have soared to $25 million through August, compared with $16.8 million in water exports in 2005.

That has made nonsweetened water Hawai'i's top all-locally produced export, according to figures provided by the Foreign Trade Zone Division of the state Department of Business, Economic Development and Tourism. Bottled water also is Hawai'i's biggest food-related international export, topping both chocolate and coffee.

So far, health-conscious Japanese are the biggest buyers of bottled Hawai'i deep-sea water, which is sold as a pure and nutrient-rich drink. However, deep-sea water may soon find its way into foods, cosmetics and other products. DSH, a privately owned company, plans to sell deep-sea water in bulk to companies that bottle the water or add it to a variety of consumer goods.

"What we can provide these finished-product manufacturers is a unique ingredient that makes their product unique and different," Treadway said.

In Japan, desalinated deep-sea water is marketed as a dietary supplement that is said to help with weight loss and stress reduction, and improves skin tone and digestion. However, another important attribute of Hawai'i's deep-sea water is what it's missing: modern contaminants, said Ron Baird, chief executive officer of NELHA. According to various tests, water mined from the depths is at least 4,000 years old, he said.

The state's first and largest bottler of deep-sea water is Koyo USA Corp., which this summer opened a third plant at the energy laboratory that quadrupled production to 1 million bottles a day. Koyo claims to have invested $80 million in Hawai'i. The other two bottling companies now in operation are Enzamin USA Inc. and Deep Sea International. Hawaii Deep Marine Inc., Savers Holdings Ltd., Hawaii Deep Ocean Waters and Kama'aina Waters LLC also have plans to eventually begin bottling at the lab.

Unlike the rest of the industry, DSH opted to base its operations on a barge. That was done to reduce costs and give the company freedom to move anywhere, Treadway said. DSH plans to ship containers of water to potential customers in Japan, South Korea, Taiwan and China for testing this week. Commercial production rates of 60 containers per barge trip could follow within weeks, Treadway said.

Just how long the Japan boom will last is unknown, though Hawai'i's water companies are targeting markets outside Japan, including other Asian countries, Europe and the Mainland U.S. As recently as 2003, Hawai'i's nonsweetened water exports were just $1.6 million. This year, the wholesale value of water exports is on track to top $37 million.

"It's going to be very significant," said NELHA's Baird. "It already is, quite frankly."

Reach Sean Hao at shao@honoluluadvertiser.com.

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