HOT MARKETS FOR WATER RIGHTS
ELECTRIC POWER - DESALINATION PROJECTS
August 11, 2001
The energy crisis in California has created an incredible surge in the acquisition of water rights for power production. Major energy companies are selecting sites along major natural gas pipeline routes in the Western United States for peaking power plants. These power plants require water for steam generation and cooling purposes.
In Oregon, there are several plants under construction. There is also very little additional water to be appropriated so the power plants are offering cash in exchange for a promise not to pump agricultural water.
In New Mexico, new power plants is are under construction in Deming and Clovis. New plants are planned near Belen, Clovis, and Las Cruces. There is talk of another plant site in the Estancia Basin east of Albuquerque.
Elsewhere power plants are under construction in Saipan and Gaza though the Gaza plant has been suspended while the intifada continues.
WaterBank has a client with land, water and natural gas available in Wyoming.
In Eastern Pennsylvania, WaterBank has a client with 40,000 acres, a private river, banked high BTU coal, natural gas and high voltage power lines and close proximity to two Interstates.
WaterBank has received many calls from landowners with water rights to determine how to respond to the new interest in their property. If you are contacted by a power company seeking your water rights, WaterBank may be able to help you negotiate a favorable transaction.
WaterBank is in the process of obtaining water for a plant near Belen, New Mexico.
ELECTRIC POWER - DESALINATION PLANT SYNERGY
All electric power plants produce heat as a by product. The heat is commonly wasted. If the waste heat is used in conjunction with a desalination plant using the RSD technology fresh drinking water can also be produced.
WaterBank® is presently in discussion with two power companies to provide RSD technology together with their power plants. A combined power production and inexpensive fresh water production plant will make their offers more competitive. At present, the new power plant in Saipan has no desalination component though elections are immenent in Saipan and fresh drinking water is a hot topic. In Gaza, the initial proposal from Enron was for a power plant and a desalination facility. The cost of the desalinated water was estimated at $1 per cubic meter which was more than Palestinian authorities were willing to authorize and the desalination component was dropped.
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