I spoke with a couple of people who had met management at the roadshows and the feedback has been overwhelmingly positive.
I might just add a few points:
- With respect to Ormat yes the efficiency differential is quite large. But as I am sure many of you know what Kalina are doing is not trying to compete with Ormat, but actually talk to people throughout Europe, China and North America who are in different sectors, i.e. industries that operate in lower heat temperatures, as that is the main competitive advantage of the Kalina cycle is to convert that lower heat into power generation
- Particularly with Sinopec as they have large quantities of Petrochemicals whereby excess heat is a massive problem!
- I got them to ask the question about what if's regarding a contingency of it going pear shaped in China, which does happen. Apparently Ross when he stepped in said that he didn't want to focus on China at all, but after meeting with Sinopec said they couldn't afford not to partner with them. So excuse me if I have this wrong but the structure of ownership is very much risk free, in terms of them having local partners and no actual money being invested into China structure at all, so that was re-assuring. I probably don't have the details right, perhaps someone can clarify
- Also I was told regarding the more recent Kalina technology that management are also talking with Alex Kalina about potentially acquiring the tech.
So all in all, very positive
KPO Price at posting:
12.0¢ Sentiment: None Disclosure: Held
(20min delay)