KALINA Raises $2.53M, Files Key Electrical Access for 170 MW Power-CCS Projects
KALINA Power Limited has made significant strides in formalising its partnership with Crusoe Energy and is actively pursuing funding to support its 170 MW Power-CCS projects amid growing interest in Alberta's data centre market.
- Progressing formal partnership with Crusoe Energy for co-located data centres
- Raised $2.53 million through rights offer and placement
- Filed Systems Access Service Requests for electrical interconnection
- Increased investor engagement and executive leadership involvement
- Exploring potential sale of non-Crusoe project sites to fund development
Strategic Partnership Development
KALINA Power Limited (ASX: KPO) has reported solid progress in its negotiations with Crusoe Energy to formalise a previously announced memorandum of understanding. The partnership aims to jointly develop Crusoe data centres powered by KALINA Distributed Power's (KDP) 170 MW Power-CCS plants, a move that could position KALINA at the forefront of clean energy solutions for the booming data centre sector.
With data centres increasingly demanding sustainable power sources, especially in North America and Alberta, this collaboration could unlock significant value for both companies. KALINA anticipates providing a market update on these negotiations shortly, underscoring the importance of this relationship to its growth strategy.
Funding and Financial Position
During the quarter ending 31 December 2024, KALINA successfully completed an underwritten rights offer raising $1.03 million and a placement raising an additional $1.5 million before costs. Despite these capital injections, the company ended the quarter with $746,000 in cash and reported operating cash outflows of $1.279 million, primarily directed towards Alberta project development.
Notably, Matthew Jenkins increased his engagement with KALINA to the role of Executive Director, reflecting a strategic move to strengthen leadership amid ongoing funding and development efforts. The company continues to engage with advisors and potential strategic and financial investors to secure further funding for its project portfolio.
Project Development and Market Interest
KALINA filed Systems Access Service Requests (SASR) for electrical interconnection across all its projects, a critical step towards operational readiness. The company is witnessing heightened interest from data centre operators and gas producers in Alberta, attracted by the potential to toll gas through KDP’s power plants.
Additionally, KALINA has initiated preliminary discussions with a Calgary-based firm active in land transactions to explore the potential near-term sale of certain project sites not involved in the Crusoe negotiations. This move aims to optimise the project portfolio’s value and provide additional funding avenues.
Management Outlook
Managing Director Ross MacLachlan described the quarter as "extremely busy," highlighting the dual focus on advancing the Crusoe partnership and expanding land holdings to enhance project value. He expressed confidence in KALINA’s strong position within a sector experiencing substantial investment activity, projecting that the company’s projects will deliver exceptional shareholder value.
However, with an estimated cash runway of only half a quarter based on current operating cash flows, the company’s ability to secure additional funding or monetise assets remains critical to sustaining operations and advancing project development.
Bottom Line?
KALINA’s next moves on funding and project sales will be pivotal in sustaining momentum amid a competitive clean energy landscape.
Questions in the middle?
- Will KALINA successfully formalise its partnership with Crusoe Energy and on what terms?
- How will the potential sale of non-Crusoe project sites impact KALINA’s financial stability and project pipeline?
- What are the timelines and risks associated with securing further funding to extend operational runway?
