Polar Works-Inlet Cooling Technology Overview-Economics and Financing

Economics and Financing

If every gas turbine inlet cooling project had access to the kind of financing that went into the original power plant, then every gas turbine would have some form of inlet cooling. To understand why we think this is true, keep reading.

Economics
Inlet cooling projects often are not implemented for a variety of reasons, even though they make sense.

Financing
There are several reasons why inlet cooling projects often don't receive financial approval.

Short-Term Capital vs. Long-Term Capital
Polar Works' inlet air cooling technology approximates a capacity addition, and should be financed as such.

The Polar Works B/O/O Solution
By undertaking inlet air cooling systems as a third party refrigeration project, Polar Works can secure a long-term finance structure more nearly approaching the financial structure of a new power plant, providing a lower weighted average cost of capital.

Out-Sourcing
When Polar Works finances a project as if it were its own, we can bring in lower-cost capital in a debt structure. That's the advantage of outsourcing through the B/O/O model.

Spark Spread
The opportunity to address increasing spark spread is the most exciting aspect of inlet cooling.