Funding will come for KDP and the big ~200MW projects (~170MW...

Funding will come for KDP and the big ~200MW projects (~170MW net to the grid), and hopefully Saddle Hills, will be built.


The teaser statement released by the company (but forced by the ASX to retract from the announcements platform) attracted:

A considerable number of strategic and financial investors have engaged and continue to conduct active diligence on the assets. Discussions around potential tolling agreements, EPC contracting and financial participation in the projects are ongoing.


Sadly, some companies are deficient in relating their efforts to the market. Some companies are deliberately obtuse, some are inadvertent.

What the company should have led with was the above as their quarterly opening and then gone on to explain the sticking points to the finalisation of a deal.

Some believe that the sticking point relies on the final state of the regulations, hopefully once the public commentary period closes this week to the draft regulations then the regulator can advise interested parties of the basis of any concerns or objections so that they can get a feel of what the worst case scenario for the regs will be. Hopefully that will suffice for potential funding partners to sign on, otherwise this could drag out until the regulations are finalised and that could take months, possibly as much as a year.

But, from the draft regulations, the proposal put forward by KDP, the interested funding parties and the wherewithal of the Canadian government to push forward to net zero I am confident that the proposed projects will go ahead largely as planned, the main exception being Saddle Hills as that, in my opinion, faces the most uncertainty with these regulations.