Cadiz Inc. Secures 85% Capacity for Northern Pipeline, Set to Begin Construction in 2025
TL;DR
Cadiz Inc. (NASDAQ: CDZI) secures 85% of Northern Pipeline's capacity, positioning itself at the forefront of water management innovations.
CDZI's Northern Pipeline project spans 220 miles across California and has a total capacity of 25,000 acre-feet per year (AFY), serving communities in remote desert regions.
CDZI's water solutions address urgent issues of water scarcity, providing reliable, clean, and affordable water to underserved communities, making the world a better place.
CDZI's ATEC Water Systems division secures sales contracts for iron and manganese filtration systems, providing clean water to rural communities and universities, an interesting educational development.
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Cadiz Inc. (NASDAQ: CDZI), a California-based water solutions company, has announced a major milestone in its efforts to address water scarcity in the Southwestern United States. The company has secured 85% of the capacity for its Northern Pipeline project under water purchase agreements, setting the stage for construction to begin in 2025.
The Northern Pipeline, spanning 220 miles across California with a total capacity of 25,000 acre-feet per year (AFY), is a critical infrastructure project designed to serve communities in California's remote desert regions and the Inland Empire. These areas currently rely on imported water from Northern California's State Water Project, making the pipeline a vital solution for improving water security in the region.
Cadiz CEO Susan Kennedy emphasized the significance of this achievement, stating, "Executing a critical mass of water purchase agreements to support construction on the Northern Pipeline has been our primary objective this year." The company expects to begin initial water deliveries as soon as 2026, with projected net revenues of approximately $850 per acre-foot in 2024 dollars, adjusted annually.
The progress on the Northern Pipeline project comes at a crucial time, as California and the Southwest face persistent drought conditions and increasing water demands due to climate change and population growth. Cadiz's infrastructure plays a critical role in addressing these challenges, offering both storage and delivery solutions to combat long-term water security issues.
In addition to the Northern Pipeline, Cadiz plans to begin contracting for water delivery via the project's Southern Pipeline later this year. This 43-mile pipeline extension to the Colorado River Aqueduct will add an additional 25,000 AFY in water supply. Once both pipelines are operational, Cadiz will manage the largest new groundwater banking operation in the Southwestern U.S., providing much-needed relief to water-stressed regions.
The company's ATEC Water Systems division is also contributing to expansion efforts, having secured three new sales contracts for iron and manganese filtration systems earlier this year. These contracts are projected to add $1.5 million in revenue for 2024 and will provide clean water to diverse communities, including rural Nevada and the University of Wisconsin, Madison.
As water scarcity continues to be a pressing global issue, Cadiz Inc.'s progress in developing comprehensive water supply and treatment solutions positions the company as a key player in addressing one of the world's most critical challenges. The successful implementation of these projects could have far-reaching implications for water management and accessibility in drought-prone regions, potentially serving as a model for future water infrastructure initiatives.
Curated from News Direct
