PowerBank Corporation, a prominent energy infrastructure developer and asset owner in North America, announces the installation of its state-of-the-art 4.99 MW Battery Energy Storage System (BESS) at the SFF-06 project in Cramahe, Ontario.
PowerBank has made a daring foray into the quickly expanding battery storage sector with this milestone. Progress toward a sustainable energy future is being aided by the arrival of the first five of nine EVLO Battery Containers.
We are taking advantage of the market opportunity, making an acquisition, and securing strategic financing. A substantial $25.8 million loan from Royal Bank of Canada (RBC), acting as lender, administrative and collateral agent, and green loan structuring agent, supports the SFF-06 project and a second initiative (903). This financial collaboration demonstrates PowerBank’s dedication to cutting-edge, environmentally responsible energy solutions.
SFF-06 is owned by 1000234763 Ontario Inc. (ProjectCo), of which PowerBank owns 50%. A coalition of First Nations groups in Ontario owns the remaining 50%.
This project, which was obtained through PowerBank’s $45 million acquisition of Solar Flow-Through Funds Ltd. in July 2024, places the business in a battery storage market that Fortune Business Insights projects will grow at a 16.3% CAGR to $31.2 billion by 2029.
Expert Collaboration. For civil and electrical work, PowerBank has chosen Anvil Crawler Development Corp., a member of the prestigious Skyline Group of Companies. Anvil Crawler contributes its experience to guarantee smooth project execution with a $1.85 million contract.
The project is titled “Value over Time” and is associated with an IESO contract. Through the Independent Electricity System Operator’s (IESO) Expedited Long-Term RFP (E-LT1 RFP), SFF-06 was able to earn a 22-year contract in July 2023. Strong financial returns are guaranteed by this contract, which has a fixed capacity payment of $1,221/MW every business day, which is significantly higher than the average of $876/MW for storage projects.
When SFF-06 is up and running, it will provide Ontario’s grid with dependable, clean energy by delivering 4.74 MW of daily contract capacity for 251 business days per year.
Clean Technology Rewards. The 2024 Clean Technology Investment Tax Credit can reimburse up to 30% of the project’s eligible capital costs. In addition to improving SFF-06’s financial performance, this refundable credit supports PowerBank’s objective of accelerating the deployment of renewable energy through targeted government incentives.
A major advancement for Ontario’s energy environment, PowerBank’s SFF-06 project combines state-of-the-art technology, strategic alliances, and sustainable investment to propel the clean energy revolution.
Project hazards. Numerous dangers accompany the project’s progress. The development of any project is affected by the necessary permits, the company’s ongoing access to third-party financing arrangements, the risks involved in building a battery energy storage project, and the gradual deterioration of battery storage capacity due to the number of discharge cycles. Governments may also change, scale back, or do away with policy support programs and incentives for battery energy storage, which could make future projects unfeasible. To learn more about the assumptions and risk factors related to the projects and statements contained in this press release, please refer to “Forward-Looking Statements.”
As previously announced, the 903 project is still undergoing the permitting process, and building cannot begin until final permissions are obtained. Specifically, the Town of Armour, Ontario, must approve an Official Plan Amendment and Zoning By-law Amendment (“OPA/ZBA”) before construction of the 903 project may begin. The Council overwhelmingly adopted a Municipal Support Resolution for the Town of Armour on November 8, 2022, and granted it to ProjectCo-1000234763 Ontario Inc. However, the delay in the OPA/ZBA is due to public opposition and the council’s assessment on how to address it. If ProjectCo fails to obtain the required OPA/ZBA in a timely manner, it might not be able to start construction on the originally scheduled schedule. Postponing construction may also delay the achievement of commercial operation by April 2026. ProjectCo has notified the IESO of a possible force majeure event related to the OPA/ZBA delay to extend the project’s commercial operation deadline under the E-LT1 contract. It is still unclear when the OPA/ZBA will be issued and how it will affect the project timeline. Certain payments owed to Evlo for the battery storage system for the 903 project and the OZ-1 project (which is also awaiting permitting) have been postponed as a result of the permitting delays. Evlo and the company’s negotiations may not yield an agreement on the payment dates.
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