Texas Border Business
By Roberto Hugo González / Texas Border Business
One of the strongest messages delivered during the RGV Desal press conference at the Embassy Suites in McAllen was that the proposed marine desalination plant is expected to be privately financed, eliminating the need for state funding to construct the facility.
Doug Allison, founder of U.S. Desalination and managing partner of RGV Desal, estimated the initial 50-million-gallon-per-day plant would cost approximately $1 billion.
“We’re not looking for any state money,” Allison said. “We’re not looking for any help from that.”
While private financing addresses one of the largest financial hurdles, Allison said several other challenges remain before the project can begin delivering water to the Rio Grande Valley.
Among the first is environmental permitting. Allison said large-scale seawater desalination facilities undergo extensive review by regulatory agencies. He noted that U.S. Desalination previously obtained the first permits issued in Texas for a large-scale seawater desalination project and described that process as rigorous.
Another challenge is public acceptance. Allison devoted much of his presentation to explaining modern desalination technology and addressing concerns about potential impacts on marine life. He presented underwater video and discussed environmental studies that, according to the company, show properly designed offshore intake and discharge systems can operate without harming marine populations.
Water delivery is another major component of the project. Although the desalination plant would be privately financed, transporting water from South Padre Island to communities throughout Cameron and Hidalgo counties will require a regional distribution network.
During the question-and-answer session, Allison said the company has not completed final engineering estimates for pipeline construction. Estimates discussed during the meeting ranged from approximately $2 million to $5 million per mile, depending on the project.
Allison said the company is evaluating multiple pipeline routes and coordinating with TxDOT, regional water districts, municipalities, and county governments. Existing and future rights-of-way could help reduce construction costs.
While the plant itself would not require public funding, Allison said local governmental entities may pursue grants or low-interest financing through the Texas Water Development Board for transmission infrastructure. He said such financing could reduce the cost of delivering water to participating communities.
The project also depends on coordination among multiple public agencies, including the Texas Commission on Environmental Quality, the Texas Water Development Board, regional water districts, municipalities, and county governments. Allison said those discussions are already underway.
Albert Escobedo, South Texas Government Affairs Director for RGV Desal, said the effort has expanded beyond its original focus in Brownsville and now involves communities across the Rio Grande Valley.
“Our project was a small project that started in Brownsville, and now has become a regional project,” Escobedo said. “RGV Desal is here to provide water solutions to the Valley for our drought.”
Allison also emphasized that time remains a factor. Engineering, environmental review, permitting, financing, and construction must all be completed before water can be produced. He said the proposed facility is designed to begin with a capacity of 50 million gallons per day and expand to 120 million gallons per day as regional demand increases.
Although project leaders acknowledged technical, regulatory, and infrastructure challenges, they said private financing of the desalination plant removes one significant obstacle while allowing public resources to focus on regional water delivery systems.
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