- KALiNA Power (KPO) is progressing the KALiNA Energy Centre at the Saddle Hills site in Canada
- While some milestones have been ticked off for the 64-megawatt combined cycle project, KPO is yet to provide guidance on when it will achieve a full notice to proceed
- Before it can do so, subsidiary KALiNA Distributed Power is arranging project financing and ensuring engineering procurement fabrication and construction contracts are in place
- KPO shares have been trading down 8.7 per cent to trade at 2.1 cents
KALiNA Power (KPO) has updated the market on the progress of the KALiNA Energy Centre – Saddle Hills which is located in Alberta, Canada.
Saddle Hills is KPO subsidiary, KALiNA Distributed Power’s (KDP) primary site and is located in an area of high electrical demand and ‘favourable’ grid interconnection capacity along with gas supply and infrastructure that’s suitable for KDP’s 64-megawatt combined cycle project.
The site will support two 32-megawatt combined cycle power plants, each configured with a 22-megawatt natural gas turbine and a KALiNA Cycle module that will generate 10 megawatts of zero emissions power from waste heat.
KDP is in the process of arranging project financing for its Saddle Hills project which will be based on a merchant market basis.
At this stage, several parties have shown their interest, signed non-disclosure agreements and are actively engaged in the financing process.
Additionally, KALiNA has completed or has almost completed multiple development milestones.
In terms of engineering procurement fabrication and construction (EPFC), KPO has almost completed contracting agreements with equipment vendors and has completed a detailed estimating and engineering report. Negotiations with Enerflex on the EPFC contract are ongoing to ensure terms and conditions can deliver cost efficiencies, warranties, construction and schedule suitable for financing.
A permit and licence for the project are in place and the environmental protection and enhancement act approval with Alberta Environment is pending.
These deliverables will allow the company to push ahead with a ‘full notice to proceed’ (FNTP) which it expects to provide guidance on in the next month or so.
Managing Director Ross MacLachlan commented on the progress made so far.
“With most of the key deliverables in place for FNTP, we are now focused on ensuring that project financing and the EPFC contracts are in place to deliver the best results for our shareholders,” he said.
“The right contracting terms of the EPFC agreement are vital in securing project financing on the right terms and conditions.”
KPO shares were down 8.7 per cent to trade at 2.1 cents at 12:51 pm AEDT.