Ann: Monthly Update on KALiNA Energy Centre - Saddle Hills, page-3

Hardly surprising that the electricity prices have effectively doubled. And the serious retirement of the ageing coal fleet has barely started. They will presumably be able to start using these much higher forecast power prices in their modelling now which should even further improve our bottom line.

Once the coal starts coming offline i see power prices ramping even further. One upside consideration is that with the removal of the DG credit incentives for small scale distributed plant, there is no need to limit ourselves to 64MW plants. As is happening in Australia now, retirement of a thermal coal plant still leaves the generators with a very attractive piece of land with a large connection to the grid in the GWs. What if one of those big generators decided instead of deploying a wind farm or a huge battery, to partner with Kalina and deploy a GW-scale CCGT plant with Kalina? Potentially bolting together 50 of these modular plants together for a huge output to an existing electricity interconnection site? Its eye-watering.

Very good news that they are forging ahead with the primary site for this year. Plenty of time for fine tuning the model with the subsequent rollout of the $900M pipeline, but smart to recognise that we just want to get the first plant underway because at this stage we will cease to be valued as a failure and be rightfully valued on our forward looking potential.

twas a good update to read today reconfirming the business model is racing ahead