NEW MEXICO – The New Mexico Environment Department released a Request for Information (RFI) related to strategic water supply, a US$500 million initiative to support the nation’s transition to renewable energy and advanced manufacturing.
The RFI is the first step in the development of strategic water supply. During this phase, NMED is seeking technical and economic information from individuals, businesses, academic institutions, government agencies and other interested parties related to the supply, treatment, delivery, storage and industrial uses of brackish water and produced water.
The RFI closes on March 31, 2024. This summer, the state will release a request for proposals and project-specific concept papers.
“This game-changing water initiative is essential to driving New Mexico’s next generation of clean jobs, growing our economy, and conserving our freshwater sources,” said Environment Cabinet Secretary James Kenney. “New Mexico is responding to the urgency of the moment with this innovative climate and economic solution.”
The strategic water supply will support the nation’s transition to renewable energy and advanced manufacturing by providing water-intensive processes with an alternative to consuming the state’s limited freshwater supplies. These industries include green hydrogen, electric vehicle and battery manufacturing, critical minerals, microchips, solar panels, wind turbines, etc.
Through a US$500 million investment from taxes collected by the state from extractive industries, New Mexico will make an advanced market commitment to purchase treated brackish water and treated produced water through contracts later this year.
In this case, the advanced market commitment model, used in other industries such as healthcare for vaccine manufacturing, reduces the risk of private sector investment and encourages early adopters to build infrastructure that would otherwise be costly.
Companies awarded an early market commitment contract can raise private capital to build and operate water treatment facilities with the guarantee that the State of New Mexico will purchase the water. The state will make the water available for the creation of green hydrogen; the storage of energy produced by wind and solar power; the manufacture of electric vehicles, microchips, solar panels, and wind turbines; and other uses as treatment and demand allow.
