Kaishan subsidiary inks Hungarian geothermal expansion deal

Kaishan Group's wholly-owned subsidiary, KS ORKA Renewables Pte Ltd (KS ORKA), has signed a letter of intent with Hungarian partner Bölény Zrt and other collaborators to establish a joint venture. The venture aims to advance geothermal power projects in Hungary, initially upgrading existing plants to a net generation capacity of 6.5MW and developing new geothermal power stations with a total installed capacity of 104MW. This partnership is expected to create a significant platform for Kaishan to expand into the Hungarian and Central and Eastern European energy markets.

The proposed joint venture will have a registered capital of HUF 5 million. KS ORKA will hold a 45% stake, Bölény (or BEF, a hybrid fund being established by Bölény with official backing) will also hold 45%, AAPRIL Kft 4%, and other foreign individual shareholders (minority shareholders) will collectively hold 6%. Initial activities include securing permits for new geothermal plants, expanding the Turawell Phase I plant, and exploring and developing adjacent areas for the Turawell Phase II expansion, comprising four construction phases with four new geothermal power plants each generating approximately 6.5MW.

KS ORKA will fully fund the exploration and drilling for the initial two wells of the Turawell Phase II project. Once successful, BEF (or Bölény) will contribute to the joint venture, with subsequent costs and risks for Turawell Phase II shared equally between KS ORKA and BEF at a 50:50 ratio for approved development plans. This letter of intent is a preliminary agreement, and a formal joint venture agreement is pending.