How KALiNA Power’s C$18M Load Sale Fuels Alberta Gas Project Growth

Strengthening Financial Foundations

KALiNA Power Limited (ASX, KPO) has reported a transformative quarter ending December 2025, marked by a significant cash inflow from the sale of its 180 MW load allocation to a global data centre developer. The transaction, completed during the quarter, brought in a total of C$18 million, substantially improving KALiNA’s balance sheet and enhancing its negotiating position for future commercial discussions.

Capitalising on Alberta’s Data Centre Boom

The company’s wholly owned Canadian subsidiary, KALiNA Distributed Power Limited (KDP), is developing a portfolio of five natural gas-fired power projects in Alberta. These projects are strategically positioned to meet the surging electricity demand from AI data centres, which currently represent approximately 20 GW of load applications to the Alberta Electrical System Operator (AESO); far exceeding the province’s existing dispatchable capacity.

KDP’s projects, designed to provide behind-the-meter electricity directly to data centres, have the potential to be phased up to around 1.7 GW of total capacity. They are located near essential infrastructure such as gas pipelines and grid access points, with future integration of carbon capture and sequestration (CCS) technologies planned.

Navigating Regulatory Changes and Market Opportunities

KDP actively engaged with AESO’s Phase 1 Limit Assignment Process and participated in the working group shaping Phase 2 of the Large Load Allocation Process. The AESO is expected to release revised allocation rules by March or April 2026, likely requiring large electricity consumers like data centres to co-locate with power generation or contract for remote generation capacity. KDP’s projects are well-aligned with these anticipated requirements, positioning the company favourably for future allocations.

Significantly, a recent Memorandum of Understanding (MOU) between the Alberta provincial government and the Canadian federal government proposes suspending the current Clean Electricity Regulations (CER) that mandate emissions abatement via CCS for gas-fired plants after 2035. Instead, power plants may opt to pay a capped carbon tax or implement CCS at a later stage. This regulatory flexibility, pending formal ratification in April 2026, reduces project risk and enhances commercial optionality for KDP’s developments.

Advancing Gas Supply and Financing Discussions

Securing substantial natural gas supply remains a critical focus. KDP is negotiating with both regulated pipeline sources and unregulated gas producers and traders to aggregate sufficient volumes for its projects. These efforts are complemented by ongoing engagement with investment bankers and potential major investors through the Pre-Financial Investment Decision (Pre-FID) process, which has attracted qualified interest contingent on regulatory clarity and commercial contract terms.

Additionally, KALiNA is progressing sales discussions for its 60 MW Saddle Hills project and other sites, having received non-binding offers. The company is exploring commercial opportunities that could significantly increase the scale and value of these assets in light of the new regulatory environment.

Prudent Cash Management and Outlook

With the recent cash inflow, KALiNA is prioritising essential expenditures while preserving capital as it advances project development and financing. Managing Director Ross MacLachlan emphasised the company’s commitment to securing the best outcomes for shareholders, anticipating further value uplift through project transactions and gas supply agreements in the coming months.