KALiNA Power (ASX: KPO) Finalises CAD$18M Megawatt Transfer Agreement

KALiNA Power Limited (ASX: KPO) has successfully finalised a transformative CAD$18 million megawatt transfer deal, confirming receipt of the final CAD$17 million payment from a global data centre developer. This substantial cash injection is a significant financial event for the clean energy infrastructure company, strengthening its position within Alberta’s expanding data centre market. The transaction validates KALiNA’s ability to monetise its allocated power capacity while advancing its broader 1.7 GW development pipeline, providing immediate financial strengthening and confirming the company’s behind-the-metre power solutions strategy.

The deal provides concrete evidence of KALiNA’s business model effectiveness. Furthermore, it positions the company to concentrate resources on progressing its remaining Alberta projects through established regulatory processes. The completed transaction delivers significant value to shareholders whilst preserving operational independence across the company’s substantial project portfolio.

What was the structure of the CAD$18M Transfer Agreement?

The Kalina Power Transfer Agreement showcases a well-structured transaction that delivered substantial value through KALiNA’s wholly-owned Canadian subsidiary, KALiNA Distributed Power (KDP). The deal involved transferring allocated megawatts to accommodate the global data centre customer’s immediate power requirements while establishing clear commercial boundaries.

The transaction followed a phased payment structure designed to protect both parties’ interests. KDP received a CAD$1 million non-refundable deposit at the end of June 2025, providing initial security. Subsequently, the CAD$17 million balance payment was completed in November 2025, bringing the total transaction value to CAD$18 million (approximately AUD$18.6 million).

According to the official ASX announcement, the agreement provided for a one-off sale and transfer of the assigned megawatts. Importantly, the arrangement does not establish any ongoing corporate relationship between KDP and the customer, allowing KALiNA to maintain operational independence for its remaining project portfolio.

How does behind-the-metre power help the Alberta data centre market?

Behind-the-metre (BTM) power solutions represent a critical advantage for data centre operators seeking a reliable, dedicated electricity supply. KALiNA’s approach involves developing natural gas-fired power plants co-located with data centres, bypassing traditional grid transmission constraints that often limit large-scale digital infrastructure projects. This model directly addresses the challenge of securing guaranteed power capacity in markets experiencing high demand.

The BTM approach delivers multiple operational and financial advantages for data centre operations. Direct power supply aims to eliminate transmission losses and grid access delays. Reliability is enhanced through dedicated generation capacity, reducing outage risks for facilities requiring 24/7 operational continuity. Additionally, cost efficiency through fixed, contracted rates via long-term tolling agreements provides financial predictability.

KALiNA’s Canadian subsidiary has positioned five Alberta projects to capitalise on this market opportunity. These projects are being developed in proximity to essential infrastructure including gas pipelines, grid access points, and resources suitable for future carbon capture and sequestration (CCS) integration.

What is included in KALiNA Power’s Alberta development portfolio?

KALiNA’s Alberta portfolio represents approximately 1.7 GW of total capacity potential across five strategic projects currently progressing through Alberta Electric System Operator (AESO) regulatory processes. The portfolio is structured to enable phased development aligned with market demand and financing availability.

Three projects are currently within the AESO Cluster 2 process, collectively including applications for 534 MW of generation and 840 MW of load capacity. These projects represent the most advanced development phase within KALiNA’s portfolio, with regulatory applications actively progressing through Alberta’s energy infrastructure approval framework.

The remaining two projects have applications for 356 MW of generation capacity, with plans to submit load applications for each project following the current regulatory phase.

The AESO Cluster 2 process represents a significant regulatory milestone for Alberta’s energy infrastructure development. Companies successfully navigating this process gain allocation rights that enable the construction and operation of substantial power generation facilities.

How did team experience support the execution of this deal?

The KALiNA team brings substantial industry expertise to Alberta’s data centre infrastructure development, with approximately 20 GW of global power project development experience. Specifically, the Alberta team possesses 3.5 GW of regional development experience, providing critical insights into local regulatory requirements and market dynamics that contributed to the successful completion of the Kalina Power Transfer Agreement.

This experience base encompasses multiple critical capabilities. Regulatory navigation expertise includes extensive familiarity with AESO processes and Alberta energy regulations, ensuring projects progress efficiently through approval frameworks. Technical development capabilities cover natural gas power plant design and behind-the-metre integration.

Furthermore, commercial structuring expertise enables long-term Power Purchase Agreement (PPA) negotiation and risk management, as demonstrated by the successful transaction structure. The team also possesses knowledge regarding future technology integration, particularly concerning carbon capture and sequestration planning, which positions projects for evolving environmental requirements.

What financial impact does the transfer agreement have for investors?

The successful completion of the CAD$18 million transfer deal provides several immediate and strategic benefits for KALiNA Power shareholders. The transaction demonstrates the company’s ability to generate substantial revenue from its development activities while maintaining focus on its remaining 1.7 GW pipeline.

The most immediate impact is the strengthening of the company’s cash position. The capital provides operational flexibility and funding to advance remaining projects through regulatory processes. This liquidity enhancement arrives without diluting existing shareholders through equity raises.

Beyond immediate financial impacts, the deal validates KALiNA’s market positioning. A global data centre developer’s willingness to pay CAD$18 million for allocated megawatt capacity demonstrates the premium value of reliable power solutions in constrained markets. This validation supports future commercial negotiations and potentially enhances valuations for remaining pipeline projects.

Why are data centre operators pursuing behind-the-metre power solutions?

Data centre operators are increasingly pursuing behind-the-metre power solutions due to the immense and growing electricity demand driven by artificial intelligence, cloud computing, and large-scale data processing. Traditional power grids in many regions are facing constraints and are unable to provide the capacity and reliability required for modern hyperscale data centres.

BTM solutions offer a direct remedy to these challenges. They provide power certainty, ensuring a dedicated and uninterruptible supply that is critical for maintaining uptime and service level agreements. Furthermore, by co-locating power generation, operators can achieve greater cost control and predictability through long-term PPAs, insulating them from volatile wholesale electricity market prices. This strategic approach is becoming essential for deploying digital infrastructure at the speed and scale the market demands.

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