Powerbank's 4.99 MW Ontario BESS nears operation

Executive Summary

• Powerbank Corp. expects its 4.99 MW SFF-06 Battery Energy Storage System (BESS) project in Ontario to reach commercial operation in January 2026, following final hot commissioning with EVLO.
• The company has concluded termination agreements for the OZ-1 project due to permitting delays, paying a $475,000 termination fee and $100,000 in retrofit cost reimbursements, while retaining possession of the systems with the supplier.
• SFF-06 is secured by a 22-year contract with the Independent Electricity System Operator (IESO) providing a fixed capacity payment of $1,221/MW per business day, and qualifies for the 2024 Clean Technology Investment Tax Credit.

Key Details

• SFF-06 Project Status: The project is in the final stages of hot commissioning with technical partners to ensure safe installation, interconnection, and commissioning with the hydro grid for nine EVLO battery containers.
• Commercial Operation Date: Anticipated for January 2026, subject to receipt of all necessary commissioning approvals. This will be Powerbank's first operational battery energy storage project.
• Ownership Structure: SFF-06 is owned by 1000234763 Ontario Inc. (ProjectCo), with Powerbank holding a 50% stake and the remaining 50% owned by a partnership of First Nations communities in Ontario.
• Acquisition History: The project was acquired through Powerbank's $45-million valued acquisition of Solar Flow-Through Funds Ltd. in July 2024.
• Contract Terms: Secured in July 2023 via the IESO’s expedited long-term RFP (E-LT1 RFP), the project has a 22-year contract with a fixed capacity payment of $1,221/megawatt per business day (significantly above the $876/MW average for storage projects).
• Incentives: The project qualifies for the 2024 Clean Technology Investment Tax Credit, offering up to 30% reimbursement of eligible capital costs.
• OZ-1 Project Termination: Due to permitting delays, Powerbank terminated the equipment supply and long-term service agreements for the OZ-1 project.
  • Termination Costs: Powerbank will pay a termination fee of $475,000 and reimburse $100,000 for certain retrofit costs, plus any amounts due for services performed to date.
  • Asset Disposition: The supplier retains possession and property of the systems originally allocated to OZ-1.
• Warranty Extension: Powerbank will pay $512,000 for an extended warranty covering the SFF-06 and 903 projects.
• Pipeline Updates: Final completion deadlines for remaining projects are being adjusted. Powerbank continues to develop the 903 project and the OZ-1 project (pending permitting certainty for re-engagement or alternative suppliers).
• Company Metrics: Powerbank has over 100 MW of completed projects and a development pipeline exceeding one gigawatt.

Notable Quotes

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