That's interesting about the ships being painted white; I hadn't known that. Yes, UAE makes no sense to me, but I could see someone trying this for Australia or southern Africa. They've been debating it since the 19th Century and I think someone just needs to try it. Either it will work well or will be a total boondoggle, but either way we'll learn which one. For processing, I would guess they'd need to set something up in a deepwater harbor where they wall it off somehow, maybe creating a giant condom for it or using a lock system to tow the whole mess into its own big tank that would have the salt water pumped out upon arrival.
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Good use of the word "boondoggle!" Ha ha. I think you're right that Australia or Cape Town would be a better location for a test run. The UAE likely has more money for such a venture though. And they would want to be the first place that had it done, at least for the notoriety. That's just my guess. I imagine someone is working on a solution that could put some sort of bag around the iceberg, but it would be challenging. How do you keep the bag from tearing, and how do you deal with the shrinkage as the ice melts and just becomes water? I'm curious to see if someone actually tries this.