The real significance of Saddle Hills is that they go from an ASX dreamer to a serious engineering firm with superior technology being deployed in the field in a desperately needed sector with massive scalability.
Closing the first deal to construct Saddle Hills was always going to be the hard part. That they have leading multi-billion dollar firms, the likes of Siemens contracting with them is amazing in itself. But upon closing finance on Saddle Hills, they have the means to prove themselves up. And no-one is going to lend a $30M ASX minnow a largely unsecured $250M of financing unless the most conservative assumptions have been applied and the project is certain to deliver. Hence it is taking a while as @Tipton suggests
So Saddle Hills closing is a virtual green light for them to then have a crack at the entire market - of which the encumbant Ormat is over $6Billion AUD market cap (and trades off huge multiples also with quite low earnings keep in mind). But we know that Kalina cycle can deliver superior electricity returns across most heat sources. So they have a distinct advantage. And given the current huge clean energy demands of the world given price of gas, current European geopolitics, limited geothermal sites etc, that superior yield is likely to be very attractive. Just imagine getting an extra 20% yield for the same price with a new tech??
KPO future for me has never been about a single CCGT plant at Saddle Hills. It is a huge untapped market in a sector that is going to grow very very rapidly. What we need is something, anything, to get us across the line to get the market to accept that we are going to take a serious slice of that very large pie.
And Saddle Hills for example would be a key indicator of that.
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