Steel from terminated Keystone XL Pipeline Project to be repurposed for water delivery as Company prepares for construction of groundwater banking project
LOS ANGELES, Nov. 12, 2024 /PRNewswire/ -- Cadiz, Inc. (NASDAQ:CDZI) (the "Company" or "Cadiz") announced today that it has entered into an agreement to purchase 180-miles of steel pipe from the terminated Keystone XL Pipeline Project. The Company plans to use the steel pipe for the construction of a pipeline network connecting the Company's groundwater bank in the Mojave Desert to major water networks in the Southwestern U.S. The 180 miles of new steel pipe will be added to the Company's expansive portfolio of pipeline assets, including 220 miles of existing pipeline acquired by the Company from El Paso Natural Gas in 2021. The 180 miles of new steel pipe will be used to expand the Company's pipeline network creating the largest new groundwater bank in the Southwest. The Company plans to begin construction in 2025.
In October, the Company announced it had entered into a letter of intent (the "LOI") with a non-profit investment fund ("Fund') for a prospective investment up to $150 million for the construction, ownership, and operation of the Mojave Groundwater Bank. Under the terms of the LOI, the Fund along with other non-profit and public sector investors, including federally recognized Native American Tribes, will provide up to $401 million of equity capital to acquire assets and fund the construction of facilities for the Mojave Groundwater Bank, presently estimated in the amount of $800 million. The parties will coordinate to seek available grant funding for any remaining construction costs.
For additional details regarding the Company's agreement for the purchase of the steel pipe assets, please refer to its Current Report on Form 8-K filed with the SEC today, November 12, 2024.