Kalina Power Limited (ASX: KPO) has expanded its secured land position for the development of its Power-CCS projects in Alberta, Canada. The company has secured site control through options to purchase land at two new locations in Crossfield and Clairmont, increasing its total secured landholding by 157% from 305 to 785 acres.
The expansion comes in response to growing demand for suitable sites capable of hosting large-scale data centres co-located with gas-fired combined cycle power plants incorporating carbon capture and sequestration. Site selection has been influenced by factors such as usable acreage, electrical transmission capacity, natural gas availability, and CO2 sequestration potential.
Kalina’s Canadian subsidiary, Kalina Distributed Power (KDP), has now assembled five secured projects with a total capacity to potentially deploy at least 1,700 MW (1.7 GW) of its Power-CCS plants. The newly secured 180-acre Clairmont site has capacity for a single 170 MW Power-CCS plant, while the 320-acre Crossfield site can support at least three 170 MW plants.
At Alsike, Myers, and Crossfield, KDP has filed Systems Access Service Requests for electrical interconnection under a designation that allows both data centre power requirements and power plant generation to operate at the same site. This approach enables data centres to receive power directly while allowing surplus electricity to be sold to the Alberta power grid. At Gilby and Clairmont, KDP has applied for generation-only interconnection, allowing electricity to be sold through long-term virtual power purchase agreements.
Environmental desktop and biophysical studies have been completed at the Myers, Alsike, and Gilby sites, with studies planned for Crossfield and Clairmont in 2025. The completed studies have raised no adverse environmental issues.
The company sees a strong market for large-scale data centre sites integrated with power plants, citing recent transactions in Alberta. Captus Energy’s sale of a 130 MW gas-fired power site with carbon sequestration capacity for C$27 million and Bitdeer Technologies’ C$21.7 million acquisition of a fully permitted 101 MW site highlight the growing demand for such projects. Based on discussions with data centre specialists TwelveSix, KDP estimates that its Power-CCS projects and the Saddle Hills project have a current valuation range of C$100,000 to C$300,000 per MW.
Kalina is actively considering near-term sales of the Saddle Hills project and one or more Power-CCS sites that are not part of the company’s current Framework Agreement with Crusoe. The company believes its Alberta land portfolio is well-positioned to capitalise on rising demand for large-scale data centre infrastructure.
Executive Chairman Ross MacLachlan commented: “Our team has assembled an outstanding portfolio of sites perfectly suited to house large-scale data centres co-located with KDP’s gas-fired Power-CCS plants. Given our strong track record in site selection, we have been able to significantly expand our footprint in Alberta. This has largely been driven by demand for suitable sites for large-scale data centres. Alberta has become a leading jurisdiction for this industry, and KDP has secured excellent sites with an early mover advantage. We find ourselves in a commanding position.”
