Australian cleantech company KALiNA Power Limited, represented by its Canadian subsidiary KALiNA Distributed Power (KDP), entered into a Memorandum of Understanding (MOU) with an unnamed “substantial, well capitalized US-based data center developer.”
The two parties will cooperate to deliver data centers that will rely on power projects based on natural gas, equipped with carbon capture and sequestration (CCS) components. These data centers will host artificial intelligence (AI) technologies.
With the gathering and processing of massive amounts of digital information, the computer servers and cooling systems of AI systems put a heavy toll on the energy grid.
The Canadian government is promoting the region of Alberta as an attractive place to invest in data and AI centers, with the suggestion that developers “bring their own electricity,” or in other words, partner with power companies.
In a statement, KALiNA Managing Director Ross MacLachlan referenced this situation, adding, “The proposed influx of data centers into Alberta has been described as a $75-$100-billion opportunity for Alberta.”
Taking this into account, KALiNA signed a MOU with the undisclosed data center developer that outlines a commercial terms framework from which to negotiate a binding project development agreement (PDA).
Additionally, KALiNA announced the signing of tolling MoUs with natural gas producers for its portfolio of power plants incorporating CCS mechanisms that are set to be located in Alberta.
MacLachlan commented, “The announced tolling MOUs with creditworthy counterparties provides added confidence to parties looking to finance our portfolio of projects. The recent Canadian Federal Investment Tax Credit (ITC) legislation (bill C-59 2023) was finally passed with significant incentives for our projects. These incentives and the certainty from the legislative enactment have been important catalysts in formalizing these tolling MoUs.”
KDP signed various tolling MOUs with natural gas producers. Currently, these agreements serve to attest to expressed interest and to provide a commercial terms framework under which the tollers and KDP can formulate a definitive tolling agreement before each plant reaches a final investment decision (FID).
Read more: Shell Signs Historic Deal With Alberta Government For Atlas Carbon Storage Project
