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Oasys Water, a Yale University spin-off, is commercialising a technology it calls ‘engineered osmosis’ that uses waste heat from power plant smoke stacks to filter water.

"The only real way to significantly reduce the cost is to eliminate the need for lots of electricity," said CEO, Aaron Mandell.

Mandell estimates that it currently costs between 90¢ and $1 to turn one cubic metre (or 264 gallons) of sea water into potable drinking water. He says Oasys' technology can lower the cost to 35¢ to 50¢ for the same quantity.

The current funding comes amid an active period for venture investment in the water purification sector. Companies that received money in the past six months include WaterHealth International, a producer of contaminated water treatment technology that raised $10m in January; NanoH20, a developer of membrane materials for water purification, which raised $15m in September; and Quench, a distributor of water purification coolers that secured $26m funding in August.

According to consulting firm Lux Research, spending on water treatment products and infrastructure is predicted to rise sharply, jumping from $522bn in 2007 to nearly $1tn by 2020. Researchers forecast that by 2030, the world will use 40% more water than today, and nearly half of the world's population will face severe water stress.