KALiNA’s Funding Hinges on MW Transfer Approval and Project Site Sales

• Secured 180 MW allocation under Alberta Electric System Operator’s Limit Assignment Process
• Entered transfer agreement for MW allocation with a CAD 1 million non-refundable deposit
• Initiated sales campaign for non-core project sites including Saddle Hills Energy Park
• Progressing data centre co-siting framework agreement with Crusoe
• Quarterly operating cash outflow of AUD 838,000 with 1.8 quarters of funding available

Strategic Power Allocation Amid Surging Demand

KALiNA Power Limited, through its Canadian subsidiary KALiNA Distributed Power Limited (KDP), has made notable strides in developing its portfolio of natural gas-fired combined cycle power plants with carbon capture technology. These projects are designed to meet the soaring electricity demand from AI data centres in Alberta, Canada.

In June 2025, the Alberta Electric System Operator (AESO) implemented a Limit Assignment Process to manage unprecedented large load applications exceeding 16 GW, well above Alberta’s peak load of 12 GW. KDP secured an interim allocation of 180 MW out of the 1,200 MW limit set for firm power service availability in 2027/2028, validating the company’s focus on co-located power generation and data centre infrastructure.

Monetizing Power Allocations and Assets

Recognising that its primary projects are scheduled for commissioning in 2029/2030 and do not require immediate grid interconnection, KDP has negotiated a transfer agreement to assign its 180 MW allocation to a third party. This deal has already yielded a CAD 1 million non-refundable deposit, with potential for additional bonuses contingent on the third party executing a demand transmission service contract with AESO.

Alongside this, KALiNA has engaged Calgary-based TwelveSix to spearhead a sales campaign for non-core project sites, including the Saddle Hills, Clairmont, and Gilby Energy Parks. These sites fall outside the company’s AI data centre framework agreement with Crusoe and represent an opportunity to raise capital and streamline KALiNA’s project focus.

Advancing Partnerships and Project Development

Progress continues under the framework agreement with Crusoe, a data centre operator, with ongoing discussions around site prioritisation, land acquisition, project scope, and development timelines. The parties are formalising a Project Development Agreement Template to underpin future contracts, signalling a maturing partnership aligned with KALiNA’s vision of integrated power and data centre solutions.

Financial Position and Outlook

For the quarter ending 30 June 2025, KALiNA reported operating cash outflows of AUD 838,000, offset by the CAD 1 million deposit from the MW transfer agreement. The company holds AUD 1.524 million in cash reserves, sufficient to fund operations for approximately 1.8 quarters. Management remains confident in securing further funding through asset sales and the MW transfer proceeds, supported by a history of shareholder backing.

CEO Ross MacLachlan emphasised that the AESO’s Limit Assignment Process validates KALiNA’s business model of behind-the-fence generation co-located with data centres, a solution increasingly favoured by Alberta’s regulators and market participants.

Bottom Line?

KALiNA’s strategic asset monetisation and power allocation transfers position it well to capitalise on Alberta’s AI data centre boom, but execution risks remain.

Questions in the middle?

• Will the AESO approve the full transfer of the 180 MW allocation to the third party?
• How quickly can KALiNA convert interest in its non-core sites into completed sales?
• What are the timelines and financial implications of finalising the Crusoe framework agreement?