Wasabi to set up unit to market waste heat-to-power technology in Asia
Nov 13, 2012 - Australian clean energy investor Wasabi Energy Ltd (ASX:WAS) today said it had signed a conditional agreement to form a subsidiary to step up the deployment of its Kalina Cycle waste heat-to-power technology in Asia.
Wasabi will own a 50% stake in the new company, Wasabi New Energy Asia (WNEA), and the right to appoint a majority of its board.
Wasabi has also agreed to facilitate the acquisition of Newmont Asset Ltd by WNEA for USD 16.5 million (EUR) in cash and 50% of WNEA's shares. Newmont has agreed to concurrently acquire 50.5% of waste heat, geothermal and solar thermal power plants developer Shanghai Shenghe New Energy Resources Science & Technology (SSNE).
Upon its establishment and the completion of the transactions, WNEA will own 50.5% of SSNE, and the Kalina Cycle licence for China, Taiwan, Hong Kong and Macau given to SSNE. WNEA will also receive 100% of the royalty income stream from SSNE currently attributable to Wasabi and a new Kalina Cycle licence covering Japan, South Korea, Indonesia, Philippines, Thailand, Vietnam, Malaysia, Singapore, Myanmar, Cambodia, Laos, Brunei, North Korea and Mongolia.
Wasabi intends to list WNEA's stock on the Toronto bourse and an appropriate Asian stock exchange.
The Australian firm added that it was working on the establishment of two similar entities for Sub Saharan Africa and the Americas.
The Kalina Cycle power unit uses waste heat from industrial processes, geothermal and solar thermal installations to produce additional electricity.