Excellent write up Grav and thank you for sharing.
Couple of key takeaways for me.
1. Excellent to see confidence that the economics of the plant hold up without "green" subsidies.
2. Comments surrounding the failures of certain plants that have been constructed in the past indicate that sufficient due diligence was conducted and lessons learnt are being applied via the supplier and EPC preferred partners.
3. While I was concerned about the requirement for customisation for each facility and how that would affect material lead times and construction costs. The fact that it has been acknowledged and a mitigation strategy developed, very much alleviates these for me (Realisation of economies of scale via modulation may be something that can be explored for typical packages, or geothermal hot springs etc many years down the line).
4. "We plan to rapidly develop the business outside of China leveraging partnerships with large EPC groups and preferred suppliers and the considerable experience and contacts of this team."
The importance of this sentence can not be overstated. With a reduction of CAPEX by the majors the EPCM space has become extremely competitive and while rates can only be reduced so far a lot of tier 1s are looking for a competitive advantage. An EPCM who could demonstrate a reduction in OPEX via increased power generation efficiencies via the integration of a kalina cycle plant would be extremely attractive.
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