Israel's National Water Company Focuses on Innovation

Despite the many challenges of the past year, Mekorot has continued to deliver one of the country's most critical resources: water. The national water company supplies more than 1.8 billion cubic meters of water annually to households, agricultural lands, and industrial zones across Israel.

Mekorot operates 11,000 km. of pipelines, 3,000 production and supply facilities, 1,200 wells, 1,000 reservoirs and pools, and roughly 20 desalination plants. With an annual infrastructure investment of NIS 1.5 to 2 billion, Mekorot follows a government-approved three-year development plan and also provides water to neighboring countries under international agreements.

State-of-the-art national control center
One of the company's most significant strategic moves this year has been the launch of a new, state-of-the-art National Water Control Center. For the first time, Mekorot has unified its monitoring and command systems – water operations, communication networks, cyber defense, and security – under a single roof. The center functions as the "brain" of Israel's national water infrastructure.

Historically, Mekorot operated through regional control rooms, each managing water infrastructure within its own geographical domain. The new centralized system allows for 24/7 nationwide oversight, from water sources and treatment facilities to distribution pipelines.

According to the company, this operational transformation drastically improves response time and coordination during extreme events, such as cyberattacks, security threats, natural disasters, and technical failures. Real-time data feeds, predictive monitoring, and streamlined communication among specialists make it possible to swiftly detect anomalies, deploy backup systems, and maintain a reliable water supply – even during emergencies. Dedicated control units, staffed around the clock, leverage cutting-edge technologies to detect early warning signs and guide immediate decision-making.

"This is not just a technological upgrade, but a strategic infrastructure shift that redefines national resilience," says Amit Lang, Mekorot's CEO.

Investing in start-ups and smart systems
Another area where Mekorot has doubled down is investing in start-up companies. Empowered by regulations that allow it to support Israeli water-tech companies, Mekorot is building a portfolio of innovative solutions for both domestic use and its growing global consultancy business. The company is active in Argentina, Italy, Singapore, Azerbaijan, India, and Cyprus, among others.

Mekorot recently completed two new equity investments via its Innovation Division, led by VP of Engineering Yossi Yaakobi, bringing its total collaborations to 11 start-ups. These companies specialize in areas ranging from water quality and operational maintenance to AI-based infrastructure management and cyber defense.

The first of the two new investments, Argu, offers real-time video analytics technology aimed at securing critical infrastructure. Its AI-powered platform integrates with Mekorot's camera systems to detect anomalies such as hazardous material events, water quality threats, tampering attempts, or operational failures. Argu's solution is designed to enhance Mekorot's water security, reduce risk, and improve response agility.

The second investment, Bimmatch, is developing a platform that uses AI and BIM (Building Information Modeling) methodologies to streamline water infrastructure design. By standardizing project specifications and automatically matching components to regulatory guidelines, Bimmatch helps Mekorot's engineers improve design accuracy, reduce planning errors, and boost field efficiency.

"These two companies are highly synergistic with our vision," notes Yaakobi. "They expand our innovation portfolio and bring real, immediate value to our operations."

To date, Mekorot has taken up to 20% equity stakes in companies focused on water delivery, quality control, infrastructure maintenance, energy optimization, and AI-driven data analysis.

New National Water Innovation Center
Beyond immediate investments, Mekorot is also laying the foundations for Israel's National Water Innovation and Research Center, in partnership with the Dan Region Wastewater Treatment Plant (Shafdan) operator, IGUDAN. The new facility will be located in Rishon LeZion and will include labs, training centers, and workspaces for both academic researchers and private-sector scientists.

The center is envisioned as a national hub for addressing the climate crisis and global water challenges. It aims to combine Israel's accumulated expertise in water treatment with cutting-edge research and development. Mekorot believes the center will attract start-ups, host international training programs, and support government and academic collaborations through platforms like the Israel Innovation Authority and the Ministry of Energy's Chief Scientist's program.

This partnership builds on Mekorot's long-standing role as the operational contractor for Shafdan, Israel's largest wastewater treatment facility. The plant processes wastewater from over 2.5 million residents in central Israel, recycling the water for agricultural use, primarily in the country's arid southern regions.

The new agreement, valid for up to 24 years, will include a dedicated test site for piloting new water technologies, for both Israeli and international companies. The Innovation Center is expected to begin operating in 2025.

"This project isn't just about infrastructure. It's about creating an ecosystem for water innovation that will serve both Israel and the world," Yaakobi explains.

A pioneering digital climate risk model
Over the past year, Mekorot launched a comprehensive climate risk survey that integrated extreme scenario frameworks from Israel's Ministry of Energy and heat maps from the national Meteorological Service. The result: a pioneering digital climate risk model that simulates long-term impacts – from decades-long heatwaves to flash flooding – on water infrastructure nationwide.

"We made a significant leap in how we prepare for climate extremes," says Riki Mor, Head of Corporate Responsibility at Mekorot. "Whether it's heatwaves, flooding, or the depletion of natural sources, we now have a dedicated model that looks far ahead. It's based on the understanding that water is a life-sustaining resource. Populations cannot function without it."

The model, built with the help of experts from across the company – hydrologists, engineers, electrical specialists, and operations teams – analyzes the potential impact of every climate scenario on every facility in the network. It also suggests practical, actionable responses. Field engineers can now open a digital map, check which facilities under their watch are at risk, and adjust maintenance or upgrade plans accordingly.

Climate risk management has been on Mekorot's agenda since 2022. But the development of this cross-disciplinary digital tool marks a turning point.

"This is not just a technological breakthrough – it's a strategic shift," says Gal Stal, Chairman of Entropy, who worked with Mekorot to develop the model. "From an investor's perspective, Mekorot is one of the most advanced companies in Israel when it comes to climate preparedness. That makes it not only operationally resilient, but also a safer financial investment."

Stal notes that global financial institutions and regulators, both in Israel and abroad, are raising the bar for environmental reporting and climate risk governance. Mekorot now views these factors as central to its investment strategy, financing terms, and long-term planning.

Innovation opportunities
Mekorot isn't just reacting to climate change – it's trying to lead through it. "There are enormous opportunities here," Mor says. "New technologies, smarter processes, and economic growth in the water sector are all within reach."

The company is investing heavily in innovation – advancing desalination technologies, water treatment, water conservation, and smart resource management. With robust research, cutting-edge tech, and proactive risk management, Mekorot aims to ensure a safe and efficient water supply even as the climate grows more unpredictable.

"We are committed to delivering the highest quality water, maintaining financial stability, and providing reliable service to the public," Mor concludes. "But above all, we are safeguarding one of the most precious resources on Earth – for the generations to come."

For more information, visit www.mekorot-int.com

Partnered with Mekorot