Corpus Christi City Council voted May 6 to start preliminary discussions with AXE H2O, a privately funded desalination developer, as the Coastal Bend city weighs long-term water supply options under drought pressure. The vote, 6-2, follows the city’s earlier decision to scrap its own seawater desalination project and comes as leaders prepare for a potential emergency later this year.
In a presentation to council members, AXE H2O outlined a plan it says would be financed without public money and would deliver additional drinking water capacity for the region. Council members were told the proposed facility could produce 150 million gallons per day and that construction would take about two years, according to the presentation.
According to AXE H2O’s chairman, John Olson, the company plans to use natural gas rather than electricity as part of the project’s design, which he said would allow it to offer a lower water price than competing proposals. Olson told council that the project would involve “no public funds, no debt, no bond rating issues,” and said there would be “No taxpayer risks, no operating expenses,” describing it as “absolutely a private venture.”
The council action came as the city has already been exploring other desalination avenues. In March, the council approved a water department recommendation to consider purchasing water from a desalination plant under construction by Corpus Christi Polymers, according to the report. Before AXE H2O breaks ground, the city would need to agree to purchase between 50 million and 150 million gallons a day for at least 30 years, under terms described as part of the early planning.
Some council members expressed skepticism about moving too quickly toward AXE H2O’s proposal, citing the lack of a identified plant location and what they said was insufficient planning detail. Sylvia Campos, who voted against beginning talks, said she wanted “more or had a little more time to prepare,” adding, “It sounds wonderful, but it’s sort of like too good to be true.” Campos also warned that the city faced a “precarious situation” and said officials needed to be “vigilant” about vetting incoming projects.
Roland Barrera, also voting against the talks, said the company’s presentation was given “prematurely.” He warned that the approaching emergency has pushed decision-making toward “just buying anything,” which he called “a fire sale” and “very irresponsible,” arguing it was “not good governance.” Mayor Paulette Guajardo, who abstained from the vote, said she wished the company had discussed its plans with her directly before presenting to the City Council.
City Manager Peter Zanoni said the proposal lacked detail, and he cited an absence of business information needed for council recommendations. Zanoni said “the proposal we received so far lacks detail, right? There’s no business data to make a recommendation to council,” framing the council’s decision as whether to move forward with the company as part of a broader, more comprehensive plan.
Other members argued the city should keep an open mind despite reservations, emphasizing the need to secure water supplies. Council Member Kaylynn Paxson said some members wanted a fuller proposal but said it should not be pulled into “political maneuvering,” adding that “it’s water, we need water.” Council Member Eric Cantu said he had “100% faith” the company would return to council with a thorough plan and argued that desalination bids are arriving because “water is the new gold,” saying “Everybody wants to come to Corpus Christi because water is the new gold, right?”
The council’s deliberations also reflect the broader stakes facing Corpus Christi. The city has reported drought conditions that have driven two main reservoirs below 8% capacity, and leaders estimate that by September the city could face a Level 1 emergency—when its water supply is projected to be 180 days from falling short of demand. Corpus Christi is the largest water supplier in the region, serving its roughly 300,000 residents plus another 200,000 people across seven counties, and it supplies water for a major petrochemical corridor and for crude oil export operations through the area’s port.
Alongside the AXE H2O vote, the council also advanced a separate proposal related to brackish groundwater. Council members voted to move forward with a hearing on a project from water provider Seven Seas Water Group that could daily produce up to 20 million gallons of drinking water from brackish water—a blend of freshwater and seawater.
The debate over desalination plans has included environmental concerns about brine disposal. Opponents have raised worries about discharge effects on Corpus Christi Bay, including fears of “dead zones” in an enclosed coastal ecosystem, while AXE H2O’s plan is described as discharging offshore into the Gulf rather than into the bay. A Corpus Christi resident, Robin Cox, said she would support the newly proposed plant despite opposing the earlier Inner Harbor desalination plan, saying, “I am for desal, just not in the Inner Harbor where it’s going to pollute the bay.” The next City Council meeting is scheduled for May 12 at 11:30 a.m.