PowerBank (SUUN) Begins Installation of First Battery Energy Storage System in Ontario
PowerBank (NASDAQ: SUUN) has commenced installation of its first 4.99 MW Battery Energy Storage System (BESS) in Cramahe, Ontario. The SFF-06 project, secured through a $45 million acquisition of Solar Flow-Through Funds Ltd., is backed by a $25.8 million RBC loan and features a 22-year IESO contract with a premium capacity payment of $1,221/MW per business day.
The project is jointly owned through a 50-50 partnership between PowerBank and First Nations communities. The company has contracted Anvil Crawler Development Corp. for a $1.85 million civil and electrical work package. The project qualifies for up to 30% Clean Technology Investment Tax Credit on eligible capital costs.
However, the company faces challenges with its 903 project, experiencing permitting delays and negotiations with Evlo regarding payment deadlines for multiple projects.
PowerBank (NASDAQ: SUUN) ha iniziato l'installazione del suo primo Sistema di Accumulo Energetico a Batteria (BESS) da 4,99 MW a Cramahe, Ontario. Il progetto SFF-06, acquisito tramite un accordo da 45 milioni di dollari con Solar Flow-Through Funds Ltd., è supportato da un prestito RBC di 25,8 milioni di dollari e prevede un contratto IESO di 22 anni con un pagamento di capacità premium di 1.221 $/MW per giorno lavorativo.
Il progetto è di proprietà congiunta attraverso una partnership 50-50 tra PowerBank e le comunità delle Prime Nazioni. L'azienda ha affidato a Anvil Crawler Development Corp. un pacchetto di lavori civili ed elettrici del valore di 1,85 milioni di dollari. Il progetto è idoneo a ricevere fino al 30% di credito d'imposta per investimenti in tecnologie pulite sui costi di capitale ammissibili.
Tuttavia, l'azienda sta affrontando difficoltà con il progetto 903, con ritardi nei permessi e trattative con Evlo riguardo alle scadenze di pagamento per più progetti.
PowerBank (NASDAQ: SUUN) ha comenzado la instalación de su primer Sistema de Almacenamiento de Energía en Baterías (BESS) de 4,99 MW en Cramahe, Ontario. El proyecto SFF-06, asegurado mediante una adquisición de 45 millones de dólares de Solar Flow-Through Funds Ltd., cuenta con un préstamo RBC de 25,8 millones de dólares y dispone de un contrato IESO de 22 años con un pago premium por capacidad de 1.221 $/MW por día hábil.
El proyecto es propiedad conjunta a través de una alianza 50-50 entre PowerBank y las comunidades de las Primeras Naciones. La empresa ha contratado a Anvil Crawler Development Corp. para un paquete de trabajos civiles y eléctricos por 1,85 millones de dólares. El proyecto califica para un crédito fiscal de inversión en tecnología limpia del 30% sobre los costos de capital elegibles.
Sin embargo, la empresa enfrenta desafíos con su proyecto 903, experimentando retrasos en los permisos y negociaciones con Evlo sobre los plazos de pago para varios proyectos.
PowerBank (NASDAQ: SUUN)가 온타리오 크라마헤에 첫 4.99MW 배터리 에너지 저장 시스템(BESS) 설치를 시작했습니다. Solar Flow-Through Funds Ltd.를 4,500만 달러에 인수하여 확보한 SFF-06 프로젝트는 2,580만 달러 RBC 대출을 바탕으로 하며, 22년간 IESO 계약과 평일 MW당 1,221달러 프리미엄 용량 지급이 특징입니다.
이 프로젝트는 PowerBank와 퍼스트 네이션 커뮤니티가 50대 50 파트너십으로 공동 소유하고 있습니다. 회사는 Anvil Crawler Development Corp.에 185만 달러 규모의 토목 및 전기 공사 패키지를 계약했습니다. 이 프로젝트는 적격 자본 비용에 대해 최대 30% 청정 기술 투자 세액 공제를 받을 수 있습니다.
하지만 회사는 903 프로젝트에서 허가 지연과 여러 프로젝트의 지불 기한과 관련해 Evlo와 협상하는 어려움을 겪고 있습니다.
PowerBank (NASDAQ : SUUN) a commencé l'installation de son premier système de stockage d'énergie par batterie (BESS) de 4,99 MW à Cramahe, en Ontario. Le projet SFF-06, acquis via une transaction de 45 millions de dollars avec Solar Flow-Through Funds Ltd., est soutenu par un prêt RBC de 25,8 millions de dollars et comprend un contrat IESO de 22 ans avec un paiement de capacité premium de 1 221 $/MW par jour ouvrable.
Le projet est détenu conjointement dans le cadre d'un partenariat 50-50 entre PowerBank et les communautés des Premières Nations. La société a mandaté Anvil Crawler Development Corp. pour un contrat de travaux civils et électriques d'un montant de 1,85 million de dollars. Le projet est éligible à un crédit d'impôt investissement en technologies propres de 30% sur les coûts en capital admissibles.
Cependant, la société rencontre des difficultés avec son projet 903, confrontée à des retards d'autorisation et à des négociations avec Evlo concernant les échéances de paiement pour plusieurs projets.
PowerBank (NASDAQ: SUUN) hat mit der Installation seines ersten 4,99 MW Batteriespeichersystems (BESS) in Cramahe, Ontario, begonnen. Das SFF-06-Projekt, das durch eine 45-Millionen-Dollar-Übernahme von Solar Flow-Through Funds Ltd. gesichert wurde, wird durch ein 25,8 Millionen Dollar RBC-Darlehen unterstützt und verfügt über einen 22-jährigen IESO-Vertrag mit einer Premium-Kapazitätszahlung von 1.221 $/MW pro Werktag.
Das Projekt befindet sich im gemeinsamen Besitz einer 50-50 Partnerschaft zwischen PowerBank und den First Nations Gemeinschaften. Das Unternehmen hat Anvil Crawler Development Corp. mit einem 1,85 Millionen Dollar umfassenden Bau- und Elektroarbeiten-Paket beauftragt. Das Projekt qualifiziert sich für eine 30%ige Steuergutschrift für Investitionen in saubere Technologien auf förderfähige Kapitalaufwendungen.
Allerdings steht das Unternehmen bei seinem Projekt 903 vor Herausforderungen, darunter Genehmigungsverzögerungen und Verhandlungen mit Evlo bezüglich Zahlungsfristen für mehrere Projekte.
- Secured premium 22-year IESO contract with $1,221/MW per business day payment (above $876/MW average)
- Project qualifies for 30% Clean Technology Investment Tax Credit
- Strategic $25.8M RBC green loan financing secured
- Positioned in growing battery storage market projected to reach $31.2B by 2029 (16.3% CAGR)
- 50% partnership with First Nations communities enhances local stakeholder relations
- Significant permitting delays affecting the 903 project timeline
- Risk of missing April 2026 commercial operation deadline for 903 project
- Payment delays to Evlo for multiple projects' battery systems
- Uncertain outcome of ongoing payment deadline negotiations with Evlo
- Project faces risks of battery degradation and potential government incentive changes
Insights
PowerBank's battery storage project demonstrates strategic market entry with guaranteed revenue streams, though permitting challenges for related projects introduce execution risks.
PowerBank's 4.99 MW battery installation in Ontario represents a significant strategic entry into the high-growth energy storage sector. The company has secured exceptionally favorable economics through its 22-year IESO contract with fixed capacity payments of
The
The Clean Technology Investment Tax Credit qualification (up to
However, the permitting challenges disclosed for the companion 903 project warrant close attention. The OPA/ZBA delays due to public opposition create completion risk for that facility, potentially affecting the April 2026 commercial operation deadline. The fact that PowerBank has already invoked force majeure with IESO signals material timeline concerns. The delayed payments to Evlo for multiple projects indicate potential cascading financial implications that could affect project economics and completion timelines across the portfolio.
This milestone marks PowerBank's bold entry into the rapidly growing battery storage market. The first five of nine EVLO Battery Containers are now on-site, supporting progress toward a sustainable energy future.
Strategic Financing, Acquisition, and Market Opportunity. The SFF-06 project, alongside a second initiative (903), is backed by a robust
SFF-06 is owned by 1000234763 Ontario Inc. (ProjectCo), in which PowerBank holds a
Acquired through PowerBank's
Expert Partnership. PowerBank has tapped Anvil Crawler Development Corp., part of the esteemed Skyline Group of Companies, to handle civil and electrical work. With a
Long-Term Value with IESO Contract. In July 2023, SFF-06 secured a 22-year contract through the Independent Electricity System Operator's (IESO) Expedited Long-Term RFP (E-LT1 RFP). With a fixed capacity payment of
Once operational, SFF-06 will deliver 4.74 MW of daily contract capacity for 251 business days annually, powering
Clean Tech Incentives. The project qualifies for the 2024 Clean Technology Investment Tax Credit, offering up to
PowerBank's SFF-06 project is a significant development for
Project Risks. There are several risks associated with the development of the Project. The development of any project is subject to required permits, the continued availability of third-party financing arrangements for the Company, the risks associated with the construction of a battery energy storage project and the degradation of battery storage capacity over time based on the number of discharge cycles. In addition, governments may revise, reduce or eliminate incentives and policy support schemes for battery energy storage, which could result in future projects no longer being economic. Please refer to "Forward-Looking Statements" for additional discussion of the assumptions and risk factors associated with the projects and statements made in this press release.
As previously disclosed, the 903 project remains in the permitting process and commencement of construction remains subject to the receipt of final permits. In particular, in order to proceed with construction of the 903 project an Official Plan Amendment and Zoning By-law Amendment ("OPA/ZBA") are required from the Town of Armour,
About PowerBank Corporation
PowerBank Corporation is an independent renewable and clean energy project developer and owner focusing on distributed and community solar projects in
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation (collectively, "forward-looking statements") that relate to the Company's current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "expects", "will continue", "is anticipated", "anticipates", "believes", "estimated", "intends", "plans", "forecast", "projection", "strategy", "objective" and "outlook") are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. In particular and without limitation, this news release contains forward-looking statements pertaining to the Company's expectations regarding its industry trends and overall market growth; the terms of the Loan; the use of proceeds from the Loan and draw downs under the Loan; the Company's growth strategies the expected energy production from the Project mentioned in this press release; the timeline for construction of the Project; the receipt of permits and financing to be able to construct the Projects; the receipt of incentives for the Project; and the size of the Company's development pipeline. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release.
Forward-looking statements are based on certain assumptions and analyses made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. In making the forward looking statements included in this news release, the Company has made various material assumptions, including but not limited to: obtaining the necessary regulatory approvals; that regulatory requirements will be maintained; general business and economic conditions; the Company's ability to successfully execute its plans and intentions; the availability of financing on reasonable terms; the Company's ability to attract and retain skilled staff; market competition; the products and services offered by the Company's competitors; that the Company's current good relationships with its service providers and other third parties will be maintained; and government subsidies and funding for renewable energy will continue as currently contemplated. Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and the Company cannot assure that actual results will be consistent with these forward-looking statements. Given these risks, uncertainties and assumptions, investors should not place undue reliance on these forward-looking statements.
Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including those listed under "Forward-Looking Statements" and "Risk Factors" in the Company's most recently completed Annual Information Form, and other public filings of the Company, which include: the Company may be adversely affected by volatile solar power market and industry conditions; the execution of the Company's growth strategy depends upon the continued availability of third-party financing arrangements; the Company and Evlo may not be able to negotiate an extension of payments that are due to Evlo; the Company's future success depends partly on its ability to expand the pipeline of its energy business in several key markets; governments may revise, reduce or eliminate incentives and policy support schemes for solar and battery storage power; general global economic conditions may have an adverse impact on our operating performance and results of operations; the Company's project development and construction activities may not be successful; developing and operating solar projects exposes the Company to various risks; the Company faces a number of risks involving Power Purchase Agreements ("PPAs") and project-level financing arrangements; any changes to the laws, regulations and policies that the Company is subject to may present technical, regulatory and economic barriers to the purchase and use of solar power; the markets in which the Company competes are highly competitive and evolving quickly; an anti-circumvention investigation could adversely affect the Company by potentially raising the prices of key supplies for the construction of solar power projects; foreign exchange rate fluctuations; a change in the Company's effective tax rate can have a significant adverse impact on its business; seasonal variations in demand linked to construction cycles and weather conditions may influence the Company's results of operations; the Company may be unable to generate sufficient cash flows or have access to external financing; the Company may incur substantial additional indebtedness in the future; the Company is subject to risks from supply chain issues; risks related to inflation and tariffs; unexpected warranty expenses that may not be adequately covered by the Company's insurance policies; if the Company is unable to attract and retain key personnel, it may not be able to compete effectively in the renewable energy market; there are a limited number of purchasers of utility-scale quantities of electricity; compliance with environmental laws and regulations can be expensive; corporate responsibility may adversely impose additional costs; the future impact of any global pandemic on the Company is unknown at this time; the Company has limited insurance coverage; the Company will be reliant on information technology systems and may be subject to damaging cyberattacks; the Company may become subject to litigation; there is no guarantee on how the Company will use its available funds; the Company will continue to sell securities for cash to fund operations, capital expansion, mergers and acquisitions that will dilute the current shareholders; and future dilution as a result of financings.
The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for the Company to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.
View original content to download multimedia:https://www.prnewswire.com/news-releases/powerbank-suun-begins-installation-of-first-battery-energy-storage-system-in-ontario-302521916.html
SOURCE PowerBank Corporation
FAQ
What is the capacity and location of PowerBank's (SUUN) first battery storage system?
How much is PowerBank's (SUUN) IESO contract worth for the SFF-06 project?
What financial backing has PowerBank (SUUN) secured for its battery storage projects?
Who owns the PowerBank (SUUN) SFF-06 battery storage project?
What are the main challenges facing PowerBank's (SUUN) battery storage projects?
How did PowerBank (SUUN) acquire the SFF-06 project?
