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🚨 Material Event

Announcement on the Signing of the Enhanced Geothermal System (EGS) Cooperation Agreement by Wholly-Owned Subsidiary Open Mountain Energy, LLC

Kaishan Group Co., Ltd.··7 pages

✨ AI Summary

Open Mountain Energy, LLC, a wholly-owned subsidiary of Kaishan Group, has signed a cooperation agreement with Power Planet, Inc. to develop Enhanced Geothermal Systems (EGS) at the Star Peak geothermal project in Nevada. The agreement outlines a phased approach for technology validation and commercialization, with an initial phase expected to provide approximately 8MW of geothermal power. This collaboration aims to explore sustainable business models and enhance the company's capabilities in the geothermal sector.

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Full Translation

AI Translation· azure_openai

I. Overview of the Agreement Signing

Recently, Kaishan Group Co., Ltd. (hereinafter referred to as "the Company") announced that its wholly-owned subsidiary Open Mountain Energy, LLC (hereinafter referred to as "OME") has signed the "Enhanced Geothermal System (EGS) Cooperation Agreement" (hereinafter referred to as "the Agreement") with Power Planet, Inc. (hereinafter referred to as "Power Planet"). The parties plan to leverage the geothermal resources of OME's Star Peak geothermal project located in the Humboldt House geothermal unit area of Pershing County, Nevada, to conduct technology validation and commercialization development of EGS, promoting the integrated development of traditional geothermal resources and EGS technology through a phased implementation approach. This Agreement serves as the foundational agreement for the cooperation on the EGS project, aiming to combine OME's geothermal resources, land, water supply, infrastructure conditions, the Company's design, supply, and construction capabilities for geothermal modular power stations, and Power Planet's technical capabilities in EGS development to jointly explore the commercial application and large-scale promotion of EGS technology in high-temperature geothermal resource development. This Agreement does not constitute a major asset restructuring as defined by the "Measures for the Administration of Major Asset Restructuring of Listed Companies" and does not constitute a related party transaction.

II. Basic Information of the Counterparty

(1) Basic Information

The Company and all members of the Board of Directors guarantee that the content of the information disclosure is true, accurate, and complete, with no false records, misleading statements, or significant omissions.

  • Company Name: Power Planet, Inc.
  • Registered Location: Delaware, USA
  • Type of Enterprise: Corporation

Power Planet is a company focused on the development of Enhanced Geothermal Systems, dedicated to improving the efficiency of geothermal resource development through advanced drilling, reservoir modification, and thermal energy development technologies, and promoting the commercialization of EGS projects. According to public information, Power Planet's core management team has many years of experience in energy development management, drilling engineering, project financing, and geothermal project management. Team members have participated in the development, operation, and financing of oil, gas, geothermal, and new energy projects. For this project, Power Planet plans to independently design, engineer, construct, and install its EGS geothermal well and reservoir engineering solutions (including its proprietary intellectual property) in a phased manner to promote commercialization.

(2) Related Party Relationship Explanation

There is no related party relationship between Power Planet and the Company, its controlling shareholders, actual controllers, directors, and senior management.

III. Main Content of the Agreement

(1) Cooperation Objectives

The parties intend to rely on the geothermal resources and existing infrastructure conditions controlled by OME at the Star Peak geothermal site, introduce Power Planet's EGS drilling development technology, and combine the modular geothermal power generation equipment and related technical solutions provided by the Company to jointly carry out EGS technology validation, commercial demonstration, and large-scale development. The parties will implement the project in phases to validate the economic viability and replicability of EGS technology in high-temperature geothermal resource development, explore sustainable and scalable business models, and promote the commercialization and large-scale development of EGS technology and modular geothermal power generation equipment in geothermal projects in the United States.

(2) Cooperation Model

OME is mainly responsible for:

  1. Providing project site and geothermal rights;
  2. Providing water supply conditions;
  3. Providing existing geothermal power plants and some grid connection resources;
  4. Providing project development cooperation and permit support;
  5. Providing geothermal power generation equipment and related technical support through the Company and its affiliates.

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