Maybe a point of clarification regarding Ormat comparisons. It...

Maybe a point of clarification regarding Ormat comparisons.

It was made very clear during the roadshow that the Kalina product does not beat Ormat in all circumstances. With stable, higher temperature environments (from memory 300c plus temps) Kalina and Ormat are pretty much on par. Where the Kalina technology is superior is with environments that have lower temperatures (150-300c) and where the temperature is suceptible to instability (peaking at high temps but dropping the lower temps). In this environment the fluid used in the Kalina process is able to operate a continuous heat to energy conversion at a steady rate, producing the stated efficiencies over the Ormat technology. Additionally, Ormat product can be volatile in environments with large temperature variability, which gives Kalina another advantage in that their fluid is not combustible and therefore a more suitable (and safer!) process for these environments.

Management were clear to highlight that they see the main opportunity initially being these environments where Ormat are not suited (and there are many), rather than canabilising Ormats market. That's not to say they won't go head to head down the track, but right now the low hanging fruit is the environments that literally aren't able to be serviced by Ormat. If anything this means this market segment has far lower competition(or non-existent?).

Hope this clarifies