Kalina Power announces plans to develop geothermal projects in Oregon, U.S.
Kalina Power Ltd. has entered an agreement with Klamath Hills Geothermal, a developer in the Klamath region in Oregon, on the development of a 10 MW geothermal power project utilising Kalina Cycle technology.
In a release to the Australian Stock Exchange, Kalina Power Limited (formerly Wasabi Energy) announces plans to develop geothermal projects in Oregon, USA, with Klamath Hills Geothermal LLC (KHG), a geothermal power company involved in the development of geothermal assets in the Klamath region over the past decade. Klamath Falls is located in the Southwest of Oregon.
The Klamath region is a renowned geothermal area. KHG has an attractive pipeline of projects at various stages being targeted for development. The initial project being developed is a 10 MWe project located in Klamath County which has had over US$2 million spent on it to date.
Kalina has been actively engaged with KHG on this project over the last 6 months. Kalina and KHG recently entered into a term sheet that provides for formal agreement to specify that all project interests held or developed by KHG will be developed exclusively in conjunction with Kalina using Kalina Cycle technology. The agreement provides terms under which Kalina can earn a majority interest in KHG through its participation and support in project development.
Kalina’s international team of power industry professionals has decades of experience building over 5 GW of power with specific involvement in over 30 geothermal projects. The agreement provides that Kalina’s team will manage project development through to the financing stage and construction of each project identified by the KHG business development team. This will include specialist engineering services, the finalisation of appropriate Power Purchasing Agreements and obtaining appropriate project financing.
If well executed and properly contracted, Kalina believes this project will be financially attractive and serve as a stepping stone to further projects in the Klamath region. A preliminary resource and geological assessment of the initial project was prepared by Mannvit Engineering, a leading international geothermal resource analyst and consultant. Information gained from this assessment was then used by Technip S.A. to complete a report to the US Department of Energy and a comprehensive engineering study.
The Technip report highlighted that the Kalina Cycle was the most economic application of those technologies evaluated and Technip’s analysis of the Kalina Cycle for KHG was a significant factor in the development of the partnership. Technip S.A. is a multinational company engaged in project management, engineering and construction for the energy industry. The Company looks forward to providing further updates on the Klamath region as projects are developed.
Source: Company release via Hot Copper