Israeli inventor Alon Bodner has developed an
underwater breathing system that literally squeezes oxygen
directly from seawater, doing away with the need
for tanks.
Called “LikeAFish,” the battery-powered artificial
  gill extracts small amounts of dissolved air that exist
  in water to deliver it to the diver. It uses a high-speed
  centrifuge to lower the pressure of seawater in a small
  sealed chamber. The dissolved air escapes back into a
  gaseous state — much as carbon dioxide is liberated
  from a soft drink when you pop the bottle cap. The
  air is then transferred into a small impermeable light
  weight bag, for the diver to breathe.  
Bodner’s system must circulate 200 quarts of water/
  minute to accommodate the breathing needs of an
  average diver, he says. A one-kilo battery should be able
  to supply a diver with one hour of dive time.  
Today, his system exists as a laboratory model with
  approved European patents and US patents pending.
  He eventually plans to reduce the size of the apparatus
to a small, lightweight vest for divers. 
Some people like Mike Rowley, a British Sub Aqua
  Club Instructor, aren’t so sure it will serve divers.
  Bodner makes the assumption that a closed-circuit rebreather
  diver will use a quart of oxygen per minute.
  However, with heavy swimming against a strong current
  this can require at least 3.5 quarts/ minute. Says
  Bodner, the device will need “some form of reserve
  capacity to enable it to cope with lengthy periods of
  high oxygen metabolism.” And that would mean a
  much larger device, perhaps too large to make it practical
  for divers.  
Craig Billingham, a technical diving instructor, says
  to get the time one gets from a rebreather or twin
  tanks, you will need a lot of batteries. “Also batteries
  and seawater don’t mix. It isn’t a case of if it leaks but
  when.”  
Bodner says that it would be undesirable to use the
  system if the water lacks oxygen or is polluted. A small
  compressed air tank built into the system could act as
  a reserve in case of battery failure. He says a fully functional
  prototype is about two years away.  
By Lakshmi Sandhana, BBC News, January 31, 2006