22 August 2012 - Melbourne based Wasabi Energy has increased its stake in AAP Carbon Holdings, a carbon asset management and engineering company, from 25% to 62.5%. Together with Wasabi, AAP Carbon will be able tooffer a combination of chemical and thermal energy conversion to electricity for sub SaharanAfrica.Under the terms of the transaction, AAP Carbon will be granted a Kalina cycle license for sub SaharanAfrica.
The Kalina cycle is a thermodynamic process for converting thermal energy into usable mechanical power.It uses a solution of two fluids with different boiling points for its working fluid. Since the solution boils over a range of temperatures as in distillation, more of the heat can be extracted from the source than with a pure working fluid. The same applies on the exhaust (condensing) end and this provides efficiency comparable to a combined cycle, with less complexity.
In March 2012 Wasabi purchased 25% of AAP Carbon, a group that engineers, builds,accredits and invests in clean energy projects that generate carbon credits under the Clean DevelopmentMechanism (CDM) of the Kyoto Protocol.
AAP Carbon’s focus has been the energy intensive ferrochromeindustry where it harvests the off"gases from furnaces for conversion into electricity by using gas"fuelreciprocating engines.AAP Carbon’s flagship cogeneration plant is the 20 MW International Ferro Metals (IFM) power plant wherecarbon monoxide"rich waste gas is harnessed to produce in excess of 160,000,000 kWh per annum of lowemission electricity for IFM’s own use.
Wasabi Energy has been in discussions withAAP Carbon regarding the installation of a Kalina cycle power plant that would utilise the waste heat fromthe reciprocating engines to produce up to 20% of additional electricity.
The IFM project is being registered for Certified Emission Reduction credits (CERs)under the UNFCCC clean development mechanism framework. AAP Carbon will hold 25% of the project’sCERs and manage the project on behalf of IFM for 10 years. These CERs areexpected to provide an annual revenue stream alongside other management fees earned by AAP Carbon.
Wasabi’s business development activities in sub Saharan Africa include the engineering study for two Kalina cycle power plants atArcelorMittal’s Vanderbijlpark steel works and several other projects in South Africa and Kenya.
AAP Carbon’s aim is to become a power producer that develops, builds, owns and operates power plants inthe industrial and renewable heat sectors in sub Saharan Africa.AAP Carbon has continued to develop its pipeline of opportunities including a feasibility study for a 28 MWchemical energy conversion plant for Hernic Ferrochrome (a Mitsubishi Corporation company) andadvanced discussions with Mogale Alloys (a Ruukki company) and Tata Steel amongst others. Each of these potential power plants creates an opportunity to add a Kalina cycle powerplant to generate more power by utilising the exhaust gases.
In addition to industrial waste heat applications, the Kalina cycle can be utilised with heat from renewablesources such as geothermal and solar thermal using a binary power plant. Currently there is about 217 MW of geothermal energy produced in Africa with most coming from flash steam power plants usinghigh temperature sources from the geothermal fields in Kenya (202 MW) and where there is also a 140 MWWasabi Energy geothermal plant under construction.