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Wasabi Energy’s Kalina Cycle business to generate significant cash flows

Wasabi Energy’s Kalina Cycle business to generate significant cash flows Kalina geothermal power plant, Húsavík, Iceland - owned by Global Geothermal/ Wasabi Energy (source: flickr/ ThinkGeoEnergy, creative commons)
Alexander Richter 10 Oct 2011

Brokerage Firm Cenkos Securities sees a great potential for Wasabi Energy's Kalina Cycle technology and its BOO approach, with a potential of annual cash flow of up to US$33 million.

In a report of early September, a brokerage firm commented on the business of Wasabi Energy with a focus on its Kalina Cycle business. Wasabi Energy is listed on the Australian and the London exchanges and has seen an increasing interest in its Kalina Cycle technology.

The company has an objective of over 200 MW in build-own-operate power plants by 2016, which promises a very healthy upside opportunity.

“Wasabi believes its Kalina Cycle engine has substantial advantages over conventional thermal power engines. The firm claims that the Kalina engine can produce up to 50 per cent more power generation from the same heat input (working particularly well at temperatures below 200 degrees centigrade), making it an ideal solution for generating useful energy from waste heat.

Cenkos said that, in simple terms, Wasabi’s business model means that each new licensee for the Kalina Cycle technology generates between A$1 million and A$2 million in fees for the firm and A$50,000 to A$100,000 per installed megawatt for licensed plants. “The BOO [build-own-operate] side, however, generates more significant revenues of approximately A$790,000 per megawatt per annum,” it added. “This gives some indication of the relatively short payback period and so refinancing possibilities once plants have been commissioned.”

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Source: Proactive Investors