Cadiz announces Northern Pipeline contracted for 85% capacity

Cadiz has secured water purchase agreements for 85% of capacity of the company’s “Northern Pipeline”, bringing the cumulative total acre-feet per year under contract for delivery via the Northern Pipeline to 21,275 acre-feet per year. Under the five water supply agreements signed so far this year, the Project is expected to deliver an annual supply of water under “take-or-pay” contracts over 40 – 50 years. The company is in final stages of contracting for the remaining capacity of the Northern Pipeline and anticipates construction of the Project to begin in 2025 as planned with initial water delivery targeted for as early as 2026. Following construction of the Project, Cadiz expects to receive net revenue of approximately $850 per AF in 2024 dollars for water purchased under the agreements. When constructed, the Southern Pipeline, will extend 43-miles southeast from Cadiz to the Colorado River Aqueduct. Once fully online, the Project is expected to be the largest new groundwater banking operation in the Southwestern U.S.