This is simply not true. We were told in the announcement on 2 September (see below for the snippet) that Power Engineers have been working on the designs and costings for a geothermal module due for completion end Q3. we had confirmation that this is complete. They have now been passed the designs to Enerflex to work up class 4 costing estimate to modularise this geothermal module. It will effectively be their contract with Kalina to build the 10MW modules. This is due to be completed in H1 2022. But we DO NOT require this detail costing to tender for the large geothermal plan in Western Canada. And it is also the correct size to use this in our own 51% owned Klamath Hills site.
I have had confirmed that the
Class 4 costings are not required to submit a bid for this project in Western Canada. As above we are bidding in Q4. So it is simply not true to imply that Kalina will remain solely a gas to electricity power provider. Geothermal projects are very likely near term. I'll go out on a limb and say i'll be surprised if we aren't successful in being contracted for at least one of these in 2022. If its the one i'm thinking of in western Canada, it is due to be operational by 2025 so thats not far away!
And then there are the mechanical waste heat to power via the compressor stations. 1000MW is Kalina suitable and currently not being utilised is what we are told. Just royalites on that alone, let alone any work we do or upfront licensing, is $35M per year!
Ross confirmed in the video that yes, they want revenue coming in asap. Alberta CCGT is an attractive opportunity short term. It enables them to develop the necessary relationships and establish credibility with companies like Siemens, Power Engineers, Enerflex. Looks pretty good on your tender documents. And we want the incoming cash to scale up and take more equity in future projects too. But it is NOT the end game. They want to be number 1 in the world and that means knocking off Ormat at about $5-6B MC AUD
Given we hold the best technology (Kalina cycle generates 30-50% more electricity yield from a geothermal well than ORC), it will surprise no-one when they start landing geothermal contracts. We all know how well geothermal companies are running on the ASX presently. Perhaps someone who knows John Hancock needs to run our slide deck past him??!!)
You may well sell into the next pump, but i think you may be missing the opportunity of a lifetime.
