Kalina Power : Monthly Update on KALiNA Energy Centre - Saddle Hills 2021/09/20
KPO.AX
ASX ANNOUNCEMENT 20 September 2021
Monthly Update on KALiNA Energy Centre - Saddle Hills
Saddle Hills on track to achieve Full Notice to Proceed in Q4-2021
Waste Heat to Power ("WHP") technology leader, KALiNA Power Limited ("KALiNA" or the "Company") (ASX: KPO) is pleased to provide this monthly update on development of its Flagship 64MW Primary Site; the KALiNA Energy Centre - Saddle Hills ("Saddle Hills"), located in the County of Saddle Hills, Alberta, Canada.
Schedule for Full Notice to Proceed ("FNTP"):
KPO's Canadian subsidiary, KALiNA Distributed Power Limited ("KDP") reports that is now nearing the final engineering, contracting and approvals process for its Saddle Hills project and continues to target FNTP during Q4-2021. A narrated video of the engineering 'walk-through" of the KALiNA Energy Centre is available at https://youtu.be/ybbq8huPlCg
Commercial Gas Supply Arrangements:
Engineering Procurement Fabrication & Construction:
On schedule with costs and construction phase timeline being addressed.
Permitting and Environmental:
On schedule with no material concerns identified.
Electrical Interconnection:
No material concerns identified.
Gas interconnection:
On schedule with no material concerns identified.
Government Funding:
Regulatory:
As previously reported, the AUC issued its decision to discontinue the Demand Transmission Service ("DTS") portion of the Distributed-Connected Generation ("DCG") credit mechanism and leave the Supply Transmission Service ("STS") portion in place. Saddle Hills can operate without DTS revenues by employing economic dispatch to generate power only when power prices are adequate. While economic dispatch does not fully recover lost DTS Credit revenue, KDP intends to partially make up
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the shortfall from "grid ancillary services revenue" that would not be available were the project to operate at or near baseload capacity.
As previously reported Kalina, and a consortium of other distributed power developers and generators ("the consortium") has filed a Stage 1, Review and Variance application with the Alberta Utilities Commission ("AUC") seeking a review of the AUC's decision that eliminated the DTS Credits. A decision on whether or not the Commission will grant a review of its decision has not yet been determined. A decision regarding the Stage 1 application continues to be expected shortly.
In addition, the Alberta Court of Appeals has scheduled 4 November 2021 to hear the "applications to appeal" of both the KDP consortium and that separately filed by WCSB Power.
Comment:
Managing Director Ross MacLachlan said: "A big focus for our team this month has been securing gas supply agreements for Saddle Hills and assessing opportunities to acquire our own gas reserves. We are confident of locking in a solution which is key to achieving FNTP in Q4. As recently reported, our team is actively engaged with a number of other commercial opportunities to deploy our technology resulting from the profile we are getting on our Saddle Hills project. We are very encouraged by our progress on Saddle Hills and the traction we are seeing in the Alberta market".
The Company will continue to provide the monthly project update and separately report any other material developments in due course. In this regard, the Company intends to provide updates on several of the other commercial opportunities referenced in the recent Corporate Update.
About KALiNA Energy Centre - Saddle Hills
Saddle Hills is KDP's Primary Site. The location is in an area of high electrical demand and favourable grid interconnection capacity along with gas supply and infrastructure suitable for KDP's initial 64MW combined cycle project. The site has sufficient infrastructure in place to accommodate two, 32MW combined cycle power plants; each configured with a 22MW natural gas turbine and a KALiNA Cycle® module that will generate 10MW of zero-emissions power from the gas turbine's waste heat.
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As previously reported, KDP is assembling a portfolio of sites to deploy its distributed generation program in select areas in Alberta. KDP is developing projects, which if all brought online, would represent over 300 MW of generation.
About KALiNA Power Limited
KALiNA Power Limited is a clean-tech company in the Industrial Waste Heat to Power ("WHP") sector, producing zero-emissions power from heat produced by energy-intensive industrial processes that may otherwise be wasted, as well as from the heat available in geothermal resources. The technology has been commercially deployed across a range of industrial settings and applications at 16 plants around the world. KPO owns the worldwide patents relating to the KALiNA Cycle®Technology and has one of the most substantial intellectual property portfolios in the sector.
For further information please contact:
Kalina Power Limited Tim Horgan Executive Director [email protected]+61 3 9236 2800 +61 449279880
Ben Jarvis, Six Degrees Investor Relations: 0413 150 448
This announcement was approved and authorised for issue by the Board of Kalina Power Limited
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Disclaimer
Kalina Power Limited published this content on 20 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 September 2021 12:21:01 UTC.