Game on, page-119

I ask because the recurring revenue for just Saddle Hills doesn't seem THAT compelling. 64mw x $35k = $2.25M + 10% equity interest (maybe $4M of EBITDA contribution to KPO?). So $6M (plus one-time dev fee).

Valid question, nice to see.

The recurring revenue calculation is incorrect, the royalty fee of $35k per MW generation capacity is based on the Kalina cycle technology only, which is 22MW.

The clincher is if the plant can outperform economically, in which case there is the expectation that there will be additional revenue coming KPO's way.

Purely for explanation purposes, these figures are entirely made up, under finance arrangements they may say that any returns in excess of 10% will see any additional profits split between the owner of Saddle Hills, the financiers and KPO (lets say a split of 50:25:25). So if the plant made $12m profit instead of a forecast $10m (being the 10% return in this made up example) then KPO would get their annual royalty of $35k x 22MW, plus their 10% share of the profits due to their equity ownership of the Saddle Hills plant (so 10% of $11m being the forecast profit of $10m plus $1m (50% of the additional profit) and 25% of the $2m additional profit, ie $0.5m).