Tapping gas pipeline infrastructure allows Cadiz to replace diesel engines, improve reliability and cut carbon emissions with solar-hybrid microgrids.
LOS ANGELES, CALIFORNIA (10.24.23) – Cadiz, Inc. (NASDAQ: CDZI/CDZIP) announced today that the Company has entered into a long-term contract with El Paso Natural Gas Company, L.L.C. (“EPNG”) to install a tap on their natural gas pipeline, which runs through the Cadiz Ranch property in the California eastern Mojave Desert. The gas tap will allow Cadiz to replace diesel engines with natural gas engines to power the Company’s groundwater wellfield, pump stations and related facilities for its agriculture operations and the Cadiz Water Conservation, Supply and Storage Project (“Cadiz Project”). The high efficiency gas engines are expected to be integrated into solar-hybrid microgrids able to reduce energy costs, cut carbon emissions, and provide 100% uptime reliability for the Company’s water supply and storage operations. The tap is expected to deliver new gas power to Cadiz by Q4 2024.
Earlier this year, the Company announced the selection of Scale Microgrids (“Scale”) to develop clean energy microgrids for facilities of the Cadiz Project. Cadiz currently operates one of the largest farming operations in San Bernardino County managing a groundwater basin using diesel generators to power the off-grid groundwater wellfield that spans across thousands of acres. The solar-hybrid microgrids designed by Scale for Cadiz will combine ground mount Solar PV, battery storage, and advanced, high-efficiency distributed generation that can lower energy costs by more than 30%, provide 100% uptime reliability and cut carbon emissions by more than 75%.