Cadiz Inc. has announced the signing of a Memorandum of Understanding (MOU) with Hoku Energy Limited, a UK-based clean energy company, and its affiliates to explore the development of a large-scale clean energy campus at Cadiz Ranch, located in California’s Mojave Desert. This MOU marks the second clean energy-related land lease agreement that Cadiz has entered into in the past year, reinforcing the company’s commitment to the sustainable development of its extensive land and water resources.
As part of the agreement, Hoku Energy has been granted a three-year exclusive option to develop clean energy infrastructure on more than 10,000 acres at Cadiz Ranch. The proposed development may include facilities for producing green hydrogen, renewable and low-carbon power generation, battery energy storage systems, and integrated digital infrastructure such as data centers. These facilities may either be built directly on the leased land or connected to related infrastructure off-site.
The terms of the MOU ensure that this new project will not interfere with existing operations or planned developments on the property. Cadiz will continue its agricultural activities and the development of the Mojave Groundwater Bank, as well as its separate green hydrogen project in partnership with RIC Energy. Additionally, 400 acres of the property have been reserved for further commercial development, which could potentially include a data center. In such a case, Hoku Energy would have the first right to supply power to that facility.
Susan Kennedy, Chair of Cadiz Inc, said in a statement, “This agreement with Hoku Energy is the capstone of our long-term land use strategy. Hoku Energy’s vision aligns with our mission to support sustainable, scaled development of critical energy and water infrastructure in California and the Southwest.”
Cadiz Ranch offers several strategic advantages for clean energy and data center development. It has access to vital infrastructure including rail lines, water supply, and existing and proposed pipeline corridors. These features make the site suitable for hosting large-scale, integrated renewable energy projects. The MOU with Hoku Energy complements Cadiz’s broader development strategy, including its 2024 agreement with RIC Energy to develop up to 3,000 acres for green hydrogen production. Together, these efforts are expected to transform Cadiz Ranch into one of North America’s most significant clean energy and green hydrogen production hubs. Further details about the MOU are available in the Current Report on Form 8-K filed by Cadiz with the U.S. Securities and Exchange Commission.
