The Kalina Cycle technology is a patented process that significantly improves the efficiency of conversion of heat to power for generation of electricity from low-temperature geothermal and waste heat.

Australian geothermal energy company, Geodynamics, is moving to build a Kalina Cycle plant in Western Australia. But the technology is relatively new and there are currently only two Kalina cycle plants operating in the world in Japan and Iceland.

AMP Resources has extensive licensing rights to Exergy’s Kalina Cycle technology and wants to merge with Exergy.

Wasabi currently owns approximately 46% of Exergy’s common stock and 100% of its preferential stock. It also holds outstanding promissory notes in Exergy of US$682,924.

If the merger proceeds, Exergy shareholders will receive cash payments for capital stock totalling US$2 million, less any transaction costs up to US$5,000 and legal costs of more than US$30,000 incurred by Exergy.

Wasabi’s proceeds from the sale of its shares under the merger would be about US$930,000.

Exergy’s board of directors have approved the merger with AMP Resources. But approval by 50% of the common stock and 50% of the preferential stock of Exergy securities is required for the transaction to proceed.

Under the terms of the merger, Wasabi will also receive all of the money it has lent Exergy in the form of the promissory notes at the Australian dollar cost (A$1.04 million) plus interest incurred at 12%per annum (about A$0.4 million).

Hot rocks explorer Geodynamics recently secured $2.08 million from the federal government to fund a 13 mega watt Kalina cycle power plant development at WMC Resources' Mt Keith nickel mine in Western Australia.

This plant would be the first Australian demonstration of the Kalina cycle power generation system using waste heat from an open cycle gas turbine.

"The Kalina cycle is a highly efficient method of converting medium to low heat into electricity," Geodynamics managing direcctor Bertus de Graaf said.

"The source of the heat could be either from industrial waste heat, conventional or HFR geothermal.

"We can move to replicating this project to many waste heat and industrial heat applications all over the world."

Geodynamics is also bidding for the construction of Kalina geothermal plants in New Zealand in conjunction with Siemens.