Corpus Christi fast-tracks private desal proposals as reservoir levels plummet

Corpus Christi fast-tracks private desal proposals as reservoir levels plummetDriven by severe drought conditions, the Corpus Christi City Council voted to advance two privately funded water supply projects, including authorizing immediate contract negotiations for a new 10-20 MGD brackish groundwater facility.

Council authorized staff to negotiate a water sales agreement with Seven Seas Water Group for a 10-20 MGD brackish groundwater RO plant at Chapman Ranch.

Staff were also directed to evaluate a proposal from newly formed AXE H2O for a 150 MGD seawater desalination plant powered by an off-grid natural gas facility.

Both proposals were added to the agenda by council members, bypassing the city manager's standard vetting process due to the urgency of the water crisis.

The city's western reservoirs have dropped to 7.8% capacity, prompting an aggressive push to diversify water sources.

The city is also negotiating with AquaTech to secure approximately 10 MGD from the existing, 85% complete CC Polymers desalination plant.

With Corpus Christi's combined western reservoir capacity falling to 7.8%, the City Council is aggressively pursuing alternative water supplies, voting during a May 5 meeting to advance two privately funded desalination proposals that bypassed standard municipal procurement channels. The council approved a substitute motion directing city staff to negotiate a water sales agreement with Seven Seas Water Group for a 10-20 MGD brackish groundwater reverse osmosis facility. The project would draw from the 22,000-acre Chapman Ranch property. The City Manager noted that while the city has an existing relationship with Seven Seas, the specific site currently lacks hydrogeologic studies, permits, and a hydraulic analysis for distribution system integration. Despite these unknowns, the council opted to skip the initial evaluation phase and move directly into contract negotiations. In a separate action, the council voted to have staff evaluate a business proposal from AXE H2O, a Texas corporation formed in March 2026. The company is proposing a 150 MGD seawater desalination plant, potentially located near the existing Barney Davis power plant, featuring a 3-mile offshore discharge. AXE H2O representatives stated the project would be entirely privately funded, utilizing a dedicated 90-megawatt natural gas power plant to remain independent of the ERCOT grid. The company is offering the city a 30-year water offtake agreement at a guaranteed price of $6.50 per 1,000 gallons, subject to annual Consumer Price Index escalations. Representatives claimed the facility could begin flowing water 24 months after securing 150 MGD in offtake agreements and finalizing financing. Both items sparked significant debate over municipal governance and procurement protocols. The City Manager noted that AXE H2O currently lacks site control, funding timelines, and a detailed capital expenditure budget, stating that standard vetting processes were circumvented when the company approached council members directly. Several council members defended the accelerated approach, citing the critical nature of the water shortage and a history of stalled water projects. Alongside the unsolicited proposals, the city's Chief Operating Officer of Water provided updates on the utility's broader diversification strategy. The Evangeline Groundwater project in San Patricio County has reached 60% design, with 45,000 linear feet of pipe already delivered to the site. Furthermore, the city is actively negotiating a contract with AquaTech to secure approximately 10 MGD of water supply from the CC Polymers seawater desalination plant, which is currently 85% complete.