KPO 14.3% 0.3¢ kalina power limited

It is easy to be cynical .But you clearly do not understand the...

  1. 186 Posts.
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    It is easy to be cynical .But you clearly do not understand the major issues.
    The three main renewables; wind,solar and geothermal still account for only 30 per cent of global power output.
    The rapid deployment of wind and solar without base load is going to mean substantially higher electricity prices and
    massive grid failures.If you have not already done so,start planning to instal a diesel generator at home for the inevitable
    blackouts.
    Substantially higher electricity prices which are now flowing through are good news for KPO as the capex of a Kalina system
    requires higher prices.
    Mass use of geothermal would be great for KPO and its time will come.
    Unfortunately,Australia has an abundance of hot rocks but they are a long way from market and you have to pump water into
    them to heat it to produce relatively small amounts of power.
    The big opportunity for KPO is in the flash geothermal market such as Indonesia and Turkey where you could simply get a second hit at the hot brine before it is reinjected underground.
    But do you want to be investing in those locations at this stage?
    There is also the potential to put kalina systems in nuclear plants using the hot water ejected from the system.
    Another application for kalina is in ocean thermal.This is potentially massive and Kalina has been working for years with an Hawaiian group
    pioneering this technology.
    But really:do we want another story or do we want to make money?
    The KPO management team is clearly looking for the fastest route to cash flow and has determined the best and most prospective target is gas fired power plants in Alberta using carbon capture with underground sequestration.
    Both the Canadian and the US governments have identified this as the only realistic option for the next 20 years.Nuclear would be good but
    how long would it take to get approval to build a nuclear plant.
    It will not be long before the Australian government will recognise the problem created by shutting down the coal fired plants and gas fired stations with CCUS will be ideal for Victoria when it finally lifts the ignorant ban on fracking.
    The distribution of the PWC sales document and opening of the data room (probably this week on my time line) will herald the start of a new
    era for KPO.The only questions now are who will be its new partners and will this trigger a bidding war in KPO? I expect we will know the answer to both questions in the next few months.
 
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