Cadiz to reuse steel from terminated Keystone XL pipeline for California groundwater project
(UI) — Cadiz Inc. announced plans to acquire 180 miles of steel pipe from the terminated Keystone XL Pipeline, repurposing the materials for a new water delivery pipeline.
This new infrastructure will connect the company’s groundwater bank in California's Mojave Desert to major water networks across the Southwestern U.S., with construction expected to begin in 2025.
The steel will join Cadiz’s existing pipeline assets, which include 220 miles acquired from El Paso Natural Gas in 2021. Once operational, this expanded pipeline network will create the largest groundwater bank in the Southwest.
"Repurposing fossil fuel infrastructure to deliver clean water to underserved communities is core to our mission," said Susan Kennedy, CEO of Cadiz. "Securing this steel will enable the Company to bring this critical infrastructure online faster and more efficiently."
The steel, originally intended for the Keystone XL crude oil pipeline, was left unused after the project was terminated in 2021 following the revocation of a presidential permit. Cadiz’s decision follows months of assessment to confirm the suitability of the 36-inch steel pipe for water transport.
Dave Archambault II, former Tribal Chairman of the Standing Rock Sioux Tribe, praised the decision, saying, "The steel from the Keystone pipeline has found a new purpose—now transporting what gives life to everything: water."
In October, Cadiz signed a letter of intent with a non-profit investment fund for potential investment up to $150 million toward the development of the Mojave Groundwater Bank. Additional investors, including Native American Tribes and public sector entities, may contribute up to $401 million in equity, with the full cost of the project estimated at $800 million.
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