Ann: Memorandum of Understanding signed with Baker Hughes, page-19

Well i think the significance of this announcement has gone straight over the markets head. Someone obviously was looking for an exit this morning and crashed the share price which then reinforced the negative opinion on this. But the reality is:

1. Partnering with Baker Hughes, one of the pre-eminent players in this space with a AUD $50Billion market cap across multiple heat capture cycles.
2. Some look at this and say well of course BH are happy to sell their kit through Kalina. But as @Starrr points out as does the announcement, this is the culmination of a huge amount of technical work to demonstrate that both parties see this as good design. BH will not be putting their name to something that isn't going to work.
3. No way BH is going to sign a wide ranging MOU with no intention of pursuing this. Not something a $50B company does. But a wide ranging agreement like this obviously had to be an MOU. BH couldnt bind themselves over multiple projects that dont yet have clear financials developed. In short i wouldnt read anything bad that this is just a non-binding MOU.
4. BH going big time into geothermal with recent stake they have taken in San Fransisco company Greenfire who do closed cycle geothermal. I wonder if this is what they will roll out at Klamath Hills?
5. NovaLT turbo-compression technology is hydrogen blend capable. We all want to see the first CCGT plant running hydrogen which would be huge for Kalina profile.
6. Saddle Hills sounds like it is well on track (BH turbine was always the preferred option for the bottoming cycle - this was in the final design announced at least 6 months ago. This has nothing to do with the Siemens turbine for burning the gas. Nothing has changed here of course. However BH and Siemens as the major equipment suppliers presumable adds a lot of oomph to closing the project financials. Hopefully this is close as the environmental permit should be not too far away.

All in all a very positive announcement although it is worded in the typical understated way these guys always seems to push out their announcements. I obviously believe the market got this completely wrong and topped up again this morning. Here's hoping i'm right sooner than later!