Kalina sells allocated megawatts for CAD $18 million in Alberta

Kalina Distributed Power has completed the transfer and sale of allocated megawatts to a customer of Greenlight Electricity Centre Partnership for a total consideration of CAD$18,000,000.

The transfer involved megawatts originally allocated to Kalina Distributed Power (KDP), a wholly owned Canadian subsidiary of Kalina Power, under the Alberta Electrical System Operator's (AESO) Interim Large Load Connection Limit Assignment Process. The customer for this transaction was facilitated through an agreement with Greenlight, which is developing the Greenlight Electricity Centre. This proposed 1,864 MW gas-fired combined cycle power generation facility in Alberta includes carbon capture options and the potential for a co-located 1,864 MW data centre complex.

Kalina confirmed that its customer executed a demand transmission services agreement (DTS Agreement) with the AESO, which served as the final condition precedent for closing a transfer agreement among KDP, Greenlight, and the customer, relating to the allocated megawatts. Following the execution of the DTS Agreement, KDP has formally transferred the allocated megawatts to the customer in accordance with the Transfer Agreement.

Under the terms of the agreement, Kalina received a non-refundable deposit of CAD$1,000,000 at the end of June 2025. As a result of the executed DTS Agreement, the company is now entitled to an additional CAD$17,000,000 payment, which is due within 15 days.

The Company is strictly bound by terms of an NDA with the client which limit further disclosures relating to the transfer agreement. The Transfer Agreement only provided for a one-off sale and transfer of the assigned MW's to Greenlight and its customer (a Global data center developer and user). The Transfer Agreement does not envisage any ongoing corporate relationship between KDP and the customer. Accordingly, the Company considers that: (a) the identity of the client is not material information that a reasonable person would expect to have a material effect on the price or value of the Company's securities; and (b) this announcement contains all material information relevant to assessing the impact of the contract on the price or value of the entity's securities and is not misleading by omission. The Company looks forward to providing further updates in the coming weeks.

Kalina Distributed Power is developing a portfolio of five projects in Alberta, aimed at providing data centres with co-located, behind-the-meter power from planned natural gas-fired power facilities. These projects are designed to be near established infrastructure, such as gas pipelines, grid access points, and resources for potential integration of carbon capture and sequestration in the future. The company anticipates a phased build-out of up to approximately 1.7 GW of total capacity.

Within its portfolio, three projects are currently in the AESO Cluster 2 process, collectively reflecting applications for 534 MW of generation and 840 MW of load. Two additional projects, also within the AESO Cluster 2 process, focus on generation with a total of 356 MW, and plans are in place to apply for corresponding load applications at these sites.

The Kalina team has experience in approximately 20 GW of global power project development, with about 3.5 GW attributed to the Alberta team. Kalina Distributed Power's business model relies on fully contracted, long-term Tolling Power Purchase Agreements, which aim to ensure a reliable and affordable electricity supply to data centres located at or near their power generation sites.

The Greenlight Electricity Centre, as proposed, intends to supply both substantial power and the infrastructure necessary for large-scale data centre operations, reflecting a growing demand for integrated power and computing capacity solutions in Alberta. The optionality to implement carbon capture measures may also support broader environmental objectives within the region.

Kalina Power stated that, due to the strict non-disclosure agreement in place, no further details concerning the identity of the customer or specifics of the agreement will be disclosed. The company maintains that it has provided all material information required for an accurate assessment of the contract's impact on its financial and operational standing.

Further updates on the progress of these projects and associated developments are expected to be provided by the company in the coming weeks.