Wasabi Energy (LON:WAS, ASX:WAS) said this morning it has received a second order for its lower temperature Kalina Cycle power plant via its partnership with engineering giant FLSmidth.
The AIM-listed group will receive a one-off licence fee based on the output of the 4.75 megawatt generator, which will run on recycled heat from Star Cement’s Ras Al Khaimah operation in the United Arab Emirates. It will be installed in the second quarter of next year.
The new contract highlights “the potential for the tremendous growth” of Kalina Cycle technology, said the green energy group.
Through licensing agreements, Wasabi Energy will receive one-off licence payments of between $50,000 and $150,000 per installed megawatt, depending on the customer and the particular industry.
The estimated the global market potential for waste heat recovery for the cement and lime industries is in excess of 15,000 megawatts, Wasabi said.
Chairman John Byrne said: "FLSmidth as the world leader in supplying engineering to the cement and lime industries is well positioned to capitalise on this market.
"We would expect that when the first Kalina Cycle project at the DG Khan plant in Pakistan comes on stream next quarter, the order rate will increase.”
For Wasabi, however, licensing and engineering income, such as that received from FLSmidth, is not expected to be the primary driver of growth.
While it will provide “a solid income stream”, the company plans to build, own and operate plants, selling power to either the customer providing waste heat or into the local grid".
Wasabi Energy aims to start a 25 megawatt building programme over the next 12 months.
The company announced on May 23 it is purchasing an option to acquire 50 per cent of the Tuzla Geothermal power project in Turkey.
It has an operating 7.5 megawatt geothermal plant and the group is working on a pre-feasibility study for a first-stage build-out of a new 14 to 17.5 megawatt geothermal operation.