(MENAFN- ProactiveInvestors - Australia) Wasabi Energy (ASX:WAS) has made the first payment of US$5.6 million towards purchasing 50.5% of Shanghai Shenghe New Energy Resources Science & Technology, the owner of a key power generation technology licence.
The Kalina Cycle power generation technology uses low grade wast heat from industrial facilities or geothermal sources to produce electricity and Shanghai Shenghe holds the licence for China, Hong Kong and Macau.
The acquisition, which is being made through Wasabi New Energy Asia, will be funded through the issue of 39,767,756 Wasabi shares at 1.8 cents per share.
Wasabi New Energy Asia was set up to advance the use of the Kalina Cycle and Shanghai Shenghe's patented Enhanced Rankine Cycle power technology throughout Asia.
Separately, with the aim to list Wasabi New Energy Asia on the Toronto Stock Exchange, Wasabi has also entered into a Letter of Intent with Lions Bay Capital Inc., for it to become WNEA.
Regulatory process for this listing is currently underway with WNEA likely to be listed on an Asian stock exchange as well in future.
Project portfolio and pipeline
Wasabi has established WNEA as a vehicle to address the energy efficiency and power needs of the burgeoning Asian market and the partial acquisition of Shanghai Shenghe will add to Wasabi's expertise.
Shanghai Shenghe powered the Shanghai Corporate Pavilion at the World EXPO held in Shanghai in 2010 with a 50 kilowatt Kalina Cycle power plant using a solar thermal array as the heat source.
Shanghai Shenghe also has a three year operating contract for a 2 megawatt Enhanced Rankine peer plant at the Yaohua Pilkington Float Glass Plant near Shanghai, which uses the heat from the glass kiln and turns it into power.
Shanghai Shenghe also has an engineering procurement and construction contract with the China Building Materials Group at its Guizho Taian cement plant for a 7.5 megawatt Rankine Cycle power plant, likely to be commissioned middle of this year.
It also has entered into a design and technical services agreement with Sinopec for a 4 megawatt Kalina Cycle power plant at its Hainan refinery and is in discussions with the Chinese authorities on the development of an oiffield in China that could potentially use geothermal power using he hot water in the field.
The estimated power from this heat source is in excess of 1000 megawatts using the Kalina Cycle technology.
Wasabi's overseas project portfolio will also get a boost as Shanghai Shenghe is in discussions with Taiwanese government on a geothermal project in the Yilan field.
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