Wasabi Energy gains on power plant contract

Wasabi Energy's arm Shanghai Shenghe New Energy Resources Science and Technology (SSNE) has signed a deal with Sinopec Hainan Refining & Chemical Co. for a 4.0 megawatt Kalina Cycle power plant.

The $10m engineering, procurement and construction agreement for the power plant is expected to be completed by the end of the year.

It will see the first application of the Kalina Cycle thermal power plant design in the Chinese petrochemical industry.

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The plant will reduce greenhouse emissions by taking low temperature hot water from the paraxylene process in Sinopec's polyester materials plant in Hainan and turning it into up to 4.0 megawatts of usable emission-free power.

The deal between Sinopec - one of the largest integrated petrochemical producers in China - and SSNE follows the design and technical services contract announced on August 2nd last year.

China's government is working to improve energy efficiency and reduce emissions through a mandate.

Chairman of Wasabi Energy, John Byrne, said the Chinese market offered significant opportunities for the company and its partners.

"Wasabi Energy is now preparing for larger scale roll out and establishing engineering teams to cover a global expansion in geothermal and waste heat," Chairman of Wasabi Energy, John Byrne, said.

Shares rose 14.58% to 1.38p at 9:00 Monday.

RD