The company behind what will be California’s first commercial-scale solar desalination plant is issuing $10 million in preferred stock in the venture, through a state-registered direct public offering (DPO) in California.
WaterFX Hydro I, Inc., doing business as HydroRevolution℠, a California subsidiary of WaterFX™, is offering the shares to finance the construction of a fully solar-powered desalination plant in the Central Valley, which is expected to be able to produce up to 1.6 billion gallons (5000 acre-feet) of water per year, with virtually zero liquid discharge. The HydroRevolution℠ process is said to allow for a 90% recovery rate, with the remaining brine being treated further to isolate the salt and mineral byproducts for industrial applications.
Instead of desalinating seawater, as many desalination operations do, this plant will pull water from shallow irrigation water (also called subsurface drainage water) which is produced as a consequence of agriculture, and which has a high salinity content that can be detrimental to freshwater ecosystems. This new plant is a scaled up and expanded version of the company’s demonstration desalination plant.
By desalinating irrigation drainage water with solar energy, HydroRevolution℠ aims to address two pressing agricultural issues in California, a reliable supply of freshwater and restoration of salt-impaired cropland, both of which are crucial in the drought-dominant weather cycles of one of America’s biggest food baskets.
“2015 marked the second year of 0% water allocation for agriculture in the Central Valley. Because of the current drought in California, many farmers have turned to drilling wells for freshwater to irrigate their crops, further decreasing California’s natural water reserves and contributing to land subsidence. Other farmers have had to fallow land when a sufficient supply of water could not be found for an economical price.” – WaterFX
Once completed, the plant will be the first of its kind in California, and the largest solar desalination plant in North America.
“We can shape the future when it comes to water and this public offering allows professional investors, as well as individuals, to directly participate in delivering a sustainable source of water in California. Being a part of this water revolution will provide more than just a financial return, it will put California on a course towards water independence.” – Aaron Mandell, Chairman of WaterFX
The DPO will consist of the issuance of up to 2 million shares of Series A Preferred stock at a cost of $5 per share, with a minimum investment of 400 shares for non-accredited investors and 1000 chares for accredited investors. This non-voting stock will provide a 6% annual dividend from profits from the sale of water, and purchases will be open to California residents, organizations, and corporations, with the intent of the company being majority owned by California residents.
More info about the DPO for HydroRevolution℠ is available on the WaterFX website.