KALiNA Power Limited (ASX:KPO) and Crusoe Sign Framework Agreement for AI Data Centres
Framework Agreement
KALiNA Power Limited’s Canadian subsidiary, KDP, has entered a multi-year Framework Agreement with Crusoe for the joint development of AI data centres co-sited with KDP’s 170 MW near-zero-emissions natural gas power plants using Power-CCS in Alberta.
Project Details
The agreement includes power purchase agreements of at least 15 years with investment-grade counterparties, providing stable, long-term cash flows to finance each Power-CCS project. Initial project locations include Myers, Alsike, and Crossfield Energy Parks, all with access to critical infrastructure such as electricity transmission, gas pipelines, fibre optic cables, and carbon sequestration hubs.
Environmental and Infrastructure
Environmental studies have been completed at Myers and Alsike Energy Parks and are planned for Crossfield in 2025. KDP has filed system access service requests with the Alberta Electric System Operator for all three sites and is continuing to develop additional projects at Gilby and Clairmont areas, with opportunities for virtual power purchase agreements.
Executive Comments
Managing Director Ross MacLachlan said: “Our team has worked closely with Crusoe to develop a commercial path forward to keep pace with AI data centre market demand while capitalizing on the unique characteristics of the Alberta market to deliver reliable, affordable natural gas-fired power configured with CO₂ capture and sequestration. Our negotiations have resulted in a significantly expanded scope that reflects the enormous market opportunity both our companies are seeking to address. This agreement establishes a framework under which up to three projects can be initially developed. It also provides the potential for additional power plants at all three locations as well as provisions for the parties to jointly develop future prospective sites. Furthermore, it outlines the potential for Crusoe to contract via virtual power purchase agreements on KDP projects which are not co-sited with Crusoe.
The Framework Agreement clearly demonstrates a willingness by both parties to capitalise on the pipeline of quality projects that KDP has assembled in Alberta that have all the necessary characteristics and infrastructure to develop multiple co-sited AI data centres powered by our near-zero-emissions natural gas power plants. Our focus now is to establish project development agreements for each site with an initial focus on the Myers, Alsike and Crossfield projects.”
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