he MOU also establishes a framework to evaluate the feasibility of siting, permitting and constructing dedicated hydrogen transportation infrastructure—including hydrogen pipelines and other transport solutions—utilizing Cadiz's existing 220-mile Northern Pipeline corridor and other rights-of-way to support future delivery of hydrogen to regional markets and other off-site customers.
The MOU announced today expands a strategic collaboration launched by the two companies in October 2024 to develop green hydrogen production at Cadiz Ranch by adding on-site solar generation as the first phase of an integrated renewable energy platform. Under the MOU, RIC will develop solar facilities to power Cadiz's agricultural operations while the companies continue advancing hydrogen production facilities and related infrastructure at Cadiz Ranch. Together, the solar and hydrogen projects are intended to provide reliable, cost-effective, low-carbon energy resources for Cadiz's agricultural operations, the Mojave Groundwater Bank and other regional water supply projects in San Bernardino County.
"Our partnership with RIC demonstrates how renewable energy and low-carbon fuels can power the next generation of water infrastructure," said Susan Kennedy, Chairman and Chief Executive Officer of Cadiz. "Last year we transitioned away from diesel and are advancing clean energy solutions for future operations. This MOU enables the next step—powering those operations with on-site solar generation while advancing green hydrogen as a future fuel source for the Mojave Groundwater Bank and other regional water infrastructure. Together, we're building an integrated clean energy platform that leverages the abundant solar, water and land resources at Cadiz Ranch."
"The opportunity extends well beyond a traditional solar and battery energy storage project," said Jonathan Rappe, CEO of RIC Energy North America. "Together we are designing an integrated renewable energy platform that can evolve alongside the hydrogen economy and support one of California's most important water infrastructure developments."
Under the MOU, the companies will negotiate a definitive power purchase agreement (PPA) for electricity generated by new on-site solar facilities while jointly planning infrastructure to support future hydrogen production, storage and delivery. The framework also provides for coordinated evaluation of electrical infrastructure, transmission facilities and other systems needed to integrate solar generation with future hydrogen production at Cadiz Ranch.
As part of this effort, the companies will evaluate the feasibility of siting, permitting and constructing dedicated hydrogen transportation infrastructure, including hydrogen pipelines and other transport solutions, within Cadiz's existing 220-mile Northern Pipeline corridor and other rights-of-way to support delivery of hydrogen to regional markets and other off-site customers. The infrastructure planning effort is intended to preserve practical, cost-effective pathways for future hydrogen transportation while supporting development of regional water and energy infrastructure projects throughout San Bernardino County.
The MOU follows two recent milestones that position the Company to commence construction of the Mojave Groundwater Bank upon completion of project financing. Earlier this month, the U.S. Bureau of Land Management approved a new right-of-way grant for Cadiz's 220-mile Northern Pipeline, allowing the Company to convert the pipeline from natural gas service to water conveyance. Earlier this year, San Bernardino County and Fenner Gap Mutual Water Company formed the San Bernardino Water and Power Authority to support the financing and development of regional water and energy infrastructure projects throughout San Bernardino County.
