en.Wedoany.com Reported - Cadiz, Inc. (NASDAQ: CDZI, CDZIP) and RIC Energy announced the signing of a Memorandum of Understanding to develop on-site solar facilities to accelerate the clean energy transition for agricultural operations and expand their collaboration on green hydrogen development. The memorandum also establishes a framework for evaluating the feasibility of utilizing Cadiz's existing 220-mile Northern Pipeline corridor and other rights-of-way to build dedicated hydrogen transportation infrastructure (including pipelines and other transport options) for future hydrogen delivery to regional markets and off-site customers.
This memorandum expands the strategic cooperation initiated by the two companies in October 2024, when they planned to develop green hydrogen production at Cadiz Ranch. Now, on-site solar power generation will serve as the first phase of an integrated renewable energy platform. Under the memorandum, RIC will develop solar facilities to power Cadiz's agricultural operations, while both parties continue advancing hydrogen production facilities and related infrastructure at Cadiz Ranch. These solar and hydrogen projects aim to provide reliable, affordable, low-carbon energy resources for Cadiz's agricultural operations, the Mojave Groundwater Bank, and other regional water projects in San Bernardino County.
Susan Kennedy, Chairman and CEO of Cadiz, stated that the collaboration with RIC demonstrates how renewable energy and low-carbon fuels can power the next generation of water infrastructure. She noted that the company has moved away from diesel and is advancing clean energy solutions for future operations. This memorandum enables the company to use on-site solar power for operations while advancing green hydrogen as a future fuel source for the Mojave Groundwater Bank and other regional water infrastructure. The two companies are jointly building an integrated clean energy platform that fully leverages the solar, water, and land resources of Cadiz Ranch.
Jonathan Rappe, CEO of RIC Energy North America, stated that this opportunity goes far beyond traditional solar and battery storage projects. Both parties are jointly designing an integrated renewable energy platform that can evolve with the hydrogen economy and support key California water infrastructure development projects.
Under the memorandum, the parties will negotiate a final Power Purchase Agreement (PPA) for electricity generated by the new on-site solar facilities, while jointly planning infrastructure to support future hydrogen production, storage, and transportation. The framework also provides for coordinated assessment of the power infrastructure, transmission facilities, and other systems needed to integrate solar power generation at Cadiz Ranch with future hydrogen production.
As part of this effort, the parties will evaluate the feasibility of siting, permitting, and constructing dedicated hydrogen transportation infrastructure (including hydrogen pipelines and other transport options) within Cadiz's existing 220-mile Northern Pipeline corridor and other rights-of-way to support hydrogen delivery to regional markets and other off-site customers. The infrastructure planning work aims to preserve practical, cost-effective pathways for future hydrogen transportation while supporting regional water and energy infrastructure project development throughout San Bernardino County.
Prior to signing this memorandum, the company achieved two recent milestones, including the U.S. Bureau of Land Management's approval of a new right-of-way authorization for Cadiz's 220-mile Northern Pipeline, allowing the company to convert the pipeline from natural gas to water transportation, and the establishment of the San Bernardino Water and Power Authority by San Bernardino County and Fenner Gap Mutual Water Company to support the financing and development of regional water and energy infrastructure projects.
