OTC News Archive
Environmentally sustainable water solution for oil & gas industry in Texas, New Mexico, and the Dakotas
October 30, 2013
Advanced Hydro Inc., a central Texas company, announced today that it has completed financing and partnership agreements to spin off Green Hydro, LLC, to address increasing demand for water use in hydraulic fracturing (fracking) by developing and desalinating environmentally sustainable brackish water resources in Texas, New Mexico, and the Dakotas.
Fracking is causing a rapid growth of oil and gas production in the United States. A large number of production sites are expected to be drilled and developed in the Eagle ford and Permian basins in Texas. However, a historical drought along with accelerated water demands for fracking is severely straining water supplies. Additionally, fracking operators have to transport fresh water across large distances, often 20-40 miles with costs of $2-3 per barrel. The increased demand for water is also providing incentives to farmers to sell their water instead of using it for crop irrigation, resulting in direct competition with crop production.
To address the demand and the negative environmental impact, Green Hydro (GH) will tap brackish water aquifers in the regions where fresh water supplies are limited or non-existing and produce desalinated water for use in fracking operations. GH is licensing and utilizing an advanced desalination technology developed by Advanced Hydro Inc. The system boasts significantly reduced O&M costs, an integrated turn-key system with open-architecture (patent pending), high efficiency, remote operations, mobile platform, and antifouling membrane coatings technology.
Advanced Hydro and an Israeli investment firm have entered into a partnership for this project as stakeholders in GH and plans to develop and deploy a fleet of advanced brackish water desalination systems in Texas and New Mexico in coming years. In addition, Advanced Hydro has signed an agreement for water rights for its first site in West Texas and expects to begin water production in early 2014 for fracking activities.
“A single frac job in these areas requires nearly 3000 trucks to move water from various purchase points to the frac sites. This is causing serious strain on the local communities, roads, and environment,” says Dr. Agnihotri, CEO of Advanced Hydro Inc. “It also causes diversion of water allocated for crops which is then permanently lost from the supply chain, and the Green Hydro venture allows us to address a supply and demand problem while reducing trucking, emissions, and competition for agricultural water by tapping brackish water resources that are plentiful in these regions. It also enables oil companies to cost effectively develop fields that have lacked fresh water while also allowing them to reduce their environmental impact; it’s a win-win scenario.”