Cadiz Inc. Advances Water Solutions with Northern Pipeline Project, Addressing Southwest Water Scarcity

Cadiz Inc. (NASDAQ: CDZI) has reached a pivotal milestone in its mission to combat water scarcity in the Southwestern United States by securing 85% of the capacity for its Northern Pipeline project through water purchase agreements. This achievement paves the way for construction to commence in 2025, targeting the delivery of 25,000 acre-feet of water annually to California's remote desert regions and the Inland Empire, areas currently dependent on the vulnerable State Water Project.

The Northern Pipeline, stretching 220 miles across California, represents a critical infrastructure development aimed at mitigating the impacts of climate change and population growth on water availability. With five contracts signed in 2024, the project is expected to supply 21,275 acre-feet of water each year under long-term agreements, addressing the urgent need for reliable water sources in drought-prone regions.

Susan Kennedy, Chairman and CEO of Cadiz, highlighted the importance of these agreements in supporting the construction of the Northern Pipeline, a key objective for the company. Beyond the Northern Pipeline, Cadiz is also planning a Southern Pipeline to the Colorado River Aqueduct, which will further enhance its capacity by an additional 25,000 acre-feet per year. Together, these projects will establish Cadiz as the operator of the largest new groundwater banking operation in the Southwestern U.S., offering a vital resource against water stress in critical basins.

Cadiz's commitment to water solutions extends to improving water quality through its subsidiary, ATEC Water Systems, which has secured $1.5 million in new sales contracts for filtration systems in 2024. These systems are set to provide clean water to communities across the U.S., showcasing the wide-ranging impact of Cadiz's initiatives.

For the business and technology sectors, Cadiz's progress underscores the growing importance of innovative water management solutions in addressing global challenges. The company's successful securing of pipeline capacity not only validates its approach but also attracts potential investment for future projects. With projected net revenues of approximately $850 per acre-foot, Cadiz's efforts are as much about financial viability as they are about environmental and social responsibility.

The broader implications of Cadiz's work are clear. As water scarcity becomes an increasingly critical issue worldwide, the company's projects offer a blueprint for sustainable water management that could inspire similar initiatives globally. By advancing the Northern and Southern Pipeline projects, Cadiz is not just solving immediate water needs but also contributing to long-term solutions for water-stressed regions around the world.