Wasabi licensee nabs 4-MW heat recovery system deal from China's Sinopec

Aug 2, 2012 - Australian clean energy investor Wasabi Energy Ltd (ASX:WAS, AIM:WAS) said today the company's licensee in China had secured an order for a 4-MW waste heat-to-power plant from China Petroleum & Chemical Corp (HKG:0386), or Sinopec.

Licensee Shanghai Shenge New Energy Resources Science & Technology Co has struck a design and technical service deal with Sinopec for a Kalina Cycle power plant at the latter's Hainan petrochemical plant. The Kalina Cycle unit will capture waste heat from the paraxylene process stream.

If the project was to reach the construction phase, it will mark "the first significant commercial application" of Wasabi's Kalina Cycle technology in China. If built, the facility is to come on stream in the second half of 2013. Under the licence agreement with Shenge New Energy, Wasabi will get an upfront fee and a one-off royalty payment for each installed megawatt.

Wasabi noted that it had installed a similar waste heat-to-power system at Fuji Oil Co's (TYO:2607) refinery in Japan's Chiba prefecture.

The Kalina Cycle power plants can use waste heat from industrial processes or from geothermal and solar thermal installations to produce clean power. Wasabi said it was also evaluating the use of hot fluids from oil and gas wells with the technology.

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