Slide 1: Alberta Power Generation Opportunity
KALINA POWER LIMITED Alberta Power Generation Opportunity August 2019 PROJECT DEVELOPMENT BY KALINA DISTRIBUTED POWER LIMITED
Slide 2: Disclaimer
Disclaimer • This presentation contains certain forward-looking statements that have been based on current expectations about future acts, events and circumstances • These forward looking statements are, however, subject to risks, uncertainties and assumptions that could cause those acts, events and
Slide 3: Introduction and Background
Introduction and Background • KALiNA Power Limited, is an ASX listed company (“KPO”, “KALiNA”) that owns the KALiNA Cycle technology (“KCT”) for converting low temperature heat into electricity. Primary applications include geothermal markets and the burgeoning waste heat to power market in energy i
Slide 4: Blue-Chip Power Team
Blue-Chip Power Team Board Ross MacLachlan Jeffry Myers Peter Littlewood Managing Director and CEO Director Director • Former Director and early investor with Pristine Power • Currently a Senior Operating Partner at Stonepeak • Former Group Director of Operations at China Light (Canada’s fastest gro
Slide 5: KDP's Mission
KDP’s Mission To immediately capitalize on the opportunities in Alberta and establish a portfolio of ten 21MW power plants for regional, distributed power generation, laying the foundation for KDP to become a meaningful player in the Alberta power market. The Alberta power market is characterized wi
Slide 6: KDP in Alberta – Opportunity Beckons
KDP in Alberta – Opportunity Beckons • The Alberta market represents a confluence of positive circumstances which has resulted in growing demand for local distributed gas fired power generation that can be enhanced with KCT zero emissions power to deliver very attractive financial returns. • 5.7 GW
Slide 7: KDP's Alberta Program – Standardized Approach
KDP’s Alberta Program – Standardized Approach • KDP’s program involves deployment of multiple 21MW KALiNA CCGT plants that incorporate a bottoming 6MW KALiNA Cycle® power package to utilize the exhaust gases from a 15MW gas turbine. • Designed to operate during the full range of ambient air temperat
Slide 8: KDP's Work in Alberta Program – Ready to fund projects
KDP’s Work in Alberta Program – Ready to fund projects • KALiNA has completed the project development work necessary to now proceed with funding of its initial projects. • This work has resulted in a well optimized power plant design package with a good understanding of costs and schedules. Work com
Slide 9: Individual Plant Fundamentals
Individual Plant Fundamentals • CAPEX ~C$62 million per 21 MW plant, inclusive of cash development fee plus engineering fees to KDP . • Double digit unlevered rates of return inclusive of technology royalty fees to KPO • Assumes Alberta energy mid-case pricing forecast at P50 from EDC, Alberta’s pre
Slide 10: Multiple Revenue Sources
Multiple Revenue Sources • A key factor in the financial performance of KDP’s Alberta projects using the KALiNA CCGT is the multiple revenue streams that provide risk mitigation from single source revenue as well as risk mitigation across contracted revenue and merchant market pricing. • DTS: 35% of
Slide 11: Multiple Income Streams for Combined Revenue
Multiple Income Streams for Combined Revenue Source Data: EDC Associates, Q2-2019 Quarterly Forecast Update 11
Slide 12: Project Siting - Site Selection Process
Project Siting - Site Selection Process • Regions with more demand than generation are net importer regions and are eligible for Distributed Generation (DG) credits when local distributed generators (DG) provide power close the loads, reducing the cost for the DFO and TFO to send power from distant
Slide 13: Project Siting – Top 5 Priority Sites
Project Siting – Top 5 Priority Sites • Site visits were undertaken to assess eight locations and at least 2 land parcels from each location • Gas service applications made on the top 5 sites for confirmation of delivery pressure and volume • Following this process, Stage 1 AESO applications in rela
Slide 14: Proposed Schedule for initial 5 projects
Proposed Schedule for initial 5 projects A portfolio of projects is ready to be deployed at a rate and time commensurate with the level of funding available An example of a five project roll out over three years would be deployed as follows: • Two projects completed over initial 2 years followed by
Slide 15: Cash Flow ($million)
Example Cash flow for Initial 5 Projects Portfolio Cash Flow from 5 Projects completed over 3 Years (100% of Projects) 100 50 - Cash Flow ($million) (50) (100) (150) (200) Site 5 Site 4 Site 3 Site 2 Site 1 NOTE: Various assumptions were made concerning the financials and numbers are for illustrativ
Slide 16: Licensing Opportunities
Licensing Opportunities Alberta • The team is actively pursuing separate, third party commercial opportunities to deploy the KALiNA Cycle® in various Waste Heat to Power projects. At this time there are several opportunities being explored which are on a scale that would likely require further finan
Slide 17: Proven Technology with Years of Successful Operation
Proven Technology with Years of Successful Operation Attributes of Successful Sumitomo Metals (Steel) Fuji Oil (Petrochemical) Unterhaching (Geothermal) Projects Compliance with KALiNA’s engineering design and equipment specifications Projects that utilized KALiNA’s engineering team and world cl
Slide 18: KALiNA Cycle® vs. Organic Rankine Cycle
KALiNA Cycle® vs. Organic Rankine Cycle Leading Organic Ranking Cycle (“ORC”) supplier, Ormat (NYSE: ORA), grew from a market capitalization of approx. US$0.8Bn to approx. US$3Bn in 5 years KALiNA Cycle® is competitive with ORC at all temperatures, and up to 40% more efficient at lower and variable
Slide 19: Company Overview
Company Overview Husavik DG Khan cement Fuji Oil Sumitomo Metals 2.0 MW 4.0 MW 8.6 MW 3.5 MW Bruchsal 0.6 MW Taufkirchen 4.5 MW 2010 World Expo 50 kW Canoga Park GERD Matsunoyama 6.5 MW 50 kW Unterhaching 3.4 MW Sinopec Star Cement Hainan 4.75 MW 4 MW Previous Kalina Cycle Power Plants - The learnin
Slide 20: Contact Details
Contact Details KALiNA Power 585 Burwood Road, Hawthorn, Victoria 3122, Australia www.kalinapower.com +61 3 9236 2800 20