Wasabi Energy: Hinkley Point C could make Kalina Cycle ‘exceedingly attractive’
By Jamie Nimmo October 23 2013, 7:45am
Britain’s first nuclear power station in a generation could benefit Wasabi Energy (LON:WAS, ASX:WAS), the AIM-listed company claimed on Wednesday.
Hinkley Point C in Somerset is being launched in a joint effort by the government and France’s EDF Energy and any subsequent rise in wholesale electricity tariffs for Wasabi’s heat recycling projects will bode well for the company, it argued. “If the proposed Hinkley Nuclear Power Plant strike price of £92.50 per megawatt hour is reflected in the wholesale cost of electricity within the UK, the Kalina Cycle® projects being promoted by Wasabi Energy will become exceedingly attractive,” said chairman John Byrne.
“As the UK moves to de-carbonise the economy, large scale energy efficiency projects will become increasingly cost effective and attractive for investors and users, providing a clear platform for Wasabi Energy to expand its business in the UK.”
The company, whose Kalina Cycle technology turns heat produced from power plants back into electricity, is currently in advanced talks with a number of industrial and renewable companies to launch the technology in the UK.
Wasabi’s shares are up 50% in the past five days of trading to 0.49p each on the back of the Hinkley Point deal.
It has also been boosted by a pre-feasibility study of a Turkish geothermal power project in which it owns a 50% stake. Wasabi’s 15 megawatt share of the project could net it over US$70mln.
WAS Price at posting:
0.9¢ Sentiment: Buy Disclosure: Held
