Cadiz Inc. has entered into a Memorandum of Understanding (MoU) with UK-based Hoku Energy Ltd. and its affiliates to develop a major clean energy campus at Cadiz Ranch in California's Mojave Desert. The MoU with Hoku represents the second prospective land lease for clean energy development that the company has entered within the past year and furthers the company's commitment to sustainable development of its land and water assets.

The MoU provides Hoku Energy with a three-year exclusive option to develop the project on more than 10,000 acres at Cadiz Ranch. The Hoku project could include green H₂ production facilities, large-scale renewable and low carbon power generation, large scale battery storage facilities, and integrated digital infrastructure, such as data centers, on the leased property or integrated with facilities off the leased property.

The agreement does not restrict existing and planned commercial development at Cadiz, including current agricultural operations, development of the Mojave Groundwater Bank, development of a green H₂ production facility in partnership with RIC Energy and reserves 400 acres for additional commercial development which could include a data center. Under the agreement, if a data center is developed within this 400-acre area, Hoku Energy will have a right of first refusal to supply power to that facility.

"This agreement with Hoku Energy is the capstone of our long-term land use strategy," said 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 property's extensive infrastructure—including access to rail lines, water resources, and pipelines and pipeline corridors—makes it well suited for large-scale, integrated renewable energy and data center development. The agreement with Hoku complements Cadiz's development of its flagship water supply and storage project, the Mojave Groundwater Bank, and follows Cadiz's 2024 agreement with RIC Energy to develop up to 3,000 acres for green H₂ production. Together, the RIC and Hoku projects are expected to position Cadiz Ranch as one of the largest clean energy campuses and green H₂ production hubs in North America.

Additional details about the MoU are included in a current report on form 8K filed by Cadiz with the SEC.