Cadiz Inc. announced that it has signed a Memorandum of Understanding (the “MOU” or “agreement”) with Hoku Energy Limited, a UK-based company, and its affiliates to build a significant clean energy campus at Cadiz Ranch in the Mojave Desert of California. The MOU with Hoku strengthens the company’s commitment to sustainable development of its land and water assets and marks the second potential land lease for clean energy development that the company has signed in the last 12 months.
Hoku Energy has a three-year exclusive option to build the project on more than 10,000 acres at Cadiz Ranch under the terms of the MOU. Large-scale renewable and low-carbon power generation, large-scale battery storage facilities, green hydrogen production facilities, and integrated digital infrastructure, like data centers, on the leased property or integrated with facilities off the leased property are all possible components of the Hoku project.
Current agricultural operations, the construction of the Mojave Groundwater Bank, the construction of a green hydrogen production facility in collaboration with RIC Energy, and the 400 acres set aside for future commercial development—which may include a data center—are all unrestricted by the agreement. According to the agreement, Hoku Energy will have the first say in whether or not to provide electricity to any data centers built inside this 400-acre territory.
“This agreement with Hoku Energy is the capstone of our long-term land use strategy,” stated Susan Kennedy, Chair of Cadiz Inc. “Hoku Energy’s vision aligns with our mission to support sustainable, scaled development of critical energy and water infrastructure in California and the Southwest.”
The Cadiz site is well-suited for large-scale, integrated data center and renewable energy development due to its considerable infrastructure, which includes pipelines, pipeline corridors, water resources, and rail lines. Following Cadiz’s 2024 deal with RIC Energy to build up to 3,000 acres for green hydrogen generation, the agreement with Hoku enhances Cadiz’s development of the Mojave Groundwater Bank, its flagship water supply and storage project. Cadiz Ranch is anticipated to become one of North America’s biggest clean energy campuses and green hydrogen production hubs when the RIC and Hoku projects are combined.
Cadiz submitted a Current Report on Form 8K with the SEC that contains further information on the MOU.
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