Imparator Enerji signs option deal to acquire interest in Turkish project

Interior of Húsavík Kalina Cycle geothermal power plant, Iceland (source: Global Geothermal)

Alexander Richter 4 Apr 2012

Announced in a release, Australian Wasabi Energy (LON:WAS, ASX:WAS) reports, that “its Turkish subsidiary Imparator Enerji has signed an option deal to acquire a 50 percent interest in an advanced geothermal project in the country.

The project provides a build-out opportunity to generate further power through the potential application of Wasabi’s proprietary Kalina Cycle technology.

The deal is the latest in a string of commercial agreements Imparator has entered recently with a number of strategic partners including project developers. It is pursuing commercial generation and technology project opportunities in both the waste-heat to power and the renewable energy sectors.

It is currently in talks with several large Turkish companies to co-develop large Kalina Cycle power plants in those sectors.

The option expires on December 31 2013 and costs US$11.75 million, which includes a US$5 million loan note to be issued by Wasabi.

Wasabi believes that sustained growth in Turkey’s economy and the corresponding increase in energy demand provide a unique market opportunity to implement its Kalina Cycle thermodynamic process for converting thermal energy into power.

Imparator and its partners have visited a number of large industrial operations in Turkey including large textile, steel, glass and fibreboard factories, as well as large power generation operations.

Preliminary evaluations have included the development of conceptual Kalina Cycle power plant designs and the exchange of technical information.

Wasabi chairman John Byrne said: “We established Imparator Enerji as a dedicated entity to specifically focus on building an independent power producer (IPP) business in Turkey by leveraging the advantages of our cornerstone technology, the Kalina Cycle. We see enormous opportunities for the Kalina Cycle in Turkey and are impressed with the quality and breadth of project opportunities we have been able to access in a relatively short time.

“Turkey is a large emerging economy in urgent need of sustainable solutions to help address the energy efficiency, energy security, power generation and emissions challenges facing the country.”

Wasabi Energy, so its release considers the market potential for geothermal energy to be around 2,105 MW electric, with new projects and P90 potential projects accounting for about 1,400 MW.

Bahay Ozcakmak, Managing Director and CEO of Imparator Enerji commented on the progress of the company: “In recent months Imparator Enerji has made significant progress in building a scalable business around the Kalina Cycle® technology in Turkey. We have been working diligently to execute our corporate strategic plan. This has involved the formation of strategic partnerships with key market participants and the evaluation of a very large number of significant commercial opportunities in Turkey. Our ability to generate more power from a given thermal resource through our technology is a powerful source of sustained competitive advantage and positions both the generation (IPP) and technology (EPC) divisions of our business very strongly in the marketplace.”

“We have evaluated several high quality projects with aggregate power generation capacity exceeding 150 MWe and are currently in advanced negotiations with several large Turkish companies to co-develop large Kalina Cycle® power plants in both the industrial energy efficiency and the renewable energy sectors. We have recently executed an option to acquire an ownership interest in an advanced geothermal project. A number of other projects we are currently evaluating also provide Imparator Enerji with significant project ownership opportunities.”

Source: Company release (pdf) and ProActive Investors