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.
"Repurposing fossil fuel infrastructure to deliver clean water
to underserved communities is core to our mission," said Cadiz CEO
Susan Kennedy. "Securing this steel
will enable the Company to bring this critical infrastructure
online faster and more efficiently."
"It's inspiring to see that sometimes hope and history align.
The steel from the Keystone pipeline has found a new purpose—now
transporting what gives life to everything: water. I commend the
Cadiz leadership for their vision of creating a better future for
our children." Dave Archambault II,
Former Tribal Chairman Standing Rock Sioux Tribe.
The Keystone XL crude oil pipeline project sponsored by Canadian
company, TC Energy, was terminated in 2021 after the Biden
Administration revoked a presidential permit which would have
allowed the pipeline to cross the Canada-U.S. border. Approximately 200 miles of
unused steel pipeline from the abandoned project is currently
stored on land in North Dakota.
After several months of diligence to determine the suitability of
the 36" steel pipe for transportation of water, Cadiz determined
the Keystone pipe was a perfect fit for the Company's groundwater
banking project in the Mojave Desert (the "Mojave Groundwater
Bank").
"Converting the Keystone from an oil pipeline to a water
pipeline serving disenfranchised communities is the ultimate
definition of environmental justice," said David Sickey, former Senior Advisor to the U.S.
Department of Energy and former Chairman Coushatta Tribe of
Louisiana.
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.
About Cadiz Inc.
Cadiz is a California water solutions company dedicated
to providing access to clean, reliable and affordable water for
people through a unique combination of water supply, storage,
pipeline and treatment solutions. With 45,000 acres of land in
California, 2.5 million acre-feet
of water supply, 220 miles of pipeline assets and the most
cost-effective water treatment filtration technology in the
industry, Cadiz offers a full suite of solutions to address the
impacts of climate change on clean water access. For more
information, please visit https://www.cadizinc.com.
Forward-Looking Statements
This release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and such forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements include, without
limitation, statements regarding the Company's expectations for
completion of the purchase of the pipeline assets and timing of the
expansion of its pipeline network and the expected coverage, reach
and benefits of the pipeline network. No assurance can be given
that the pipeline expansion discussed in this release will be
completed according to the timing or to the extent described in
this release. Management believes that these forward-looking
statements are reasonable as and when made. However, such
forward-looking statements are subject to risks and uncertainties,
and actual results may differ materially from any future results
expressed or implied by the forward-looking statements. Risks and
uncertainties include, without limitation, changes in market
conditions and permitting, risks and uncertainties associated with
the Company's business and finances in general, as well as other
risk factors described from time to time in the Company's filings
with the SEC, including its Annual Report on Form 10-K for the year
ended December 31, 2023, and
subsequent filings. In light of the significant uncertainties in
these forward-looking statements, you should not rely upon
forward-looking statements as predictions of future events. The
Company undertakes no obligation to publicly update any
forward-looking statement, whether written or oral, that may be
made from time to time, whether as a result of new information,
future developments or otherwise, except as required by
law.
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SOURCE Cadiz, Inc.