Powerbank installs Cramahe energy storage system

Executive Summary

• Powerbank Corp. has begun the installation of its first battery energy storage system (BESS), the 4.99-megawatt SFF-06 project in Cramahe, Ontario, marking its entry into the battery storage market.
• The SFF-06 project is backed by a $25.8-million loan from Royal Bank of Canada and features a 22-year fixed capacity contract with the Independent Electricity System Operator (IESO) at a rate of $1,221 per MW per business day.
• While SFF-06 moves forward, the company’s second initiative (Project 903) faces permitting delays in Armour, Ontario, which has triggered a potential force majeure notice to the IESO and delayed payments to supplier Evlo.

Key Details

• SFF-06 Project Status: Installation has commenced for the first five of nine EVLO battery containers at the 4.99 MW facility in Cramahe, Ontario.
• Project Ownership: SFF-06 is owned by 1000234763 Ontario Inc. (ProjectCo), in which Powerbank holds a 50% stake; the remaining 50% is owned by a partnership of First Nations communities in Ontario.
• Financing: The project is supported by a $25.8-million loan from Royal Bank of Canada, acting as lender, administrative and collateral agent, and green loan structuring agent.
• Contract Terms: SFF-06 secured a 22-year contract via the IESO expedited long-term RFP (E-LT1 RFP) in July 2023.
  • Capacity Payment: Fixed at $1,221 per megawatt per business day (significantly above the $876/MW average for storage projects).
  • Operational Capacity: Once operational, the project will deliver 4.74 MW of daily contract capacity for 251 business days annually.
• Incentives: The project qualifies for the 2024 clean technology investment tax credit, offering up to 30% reimbursement of eligible capital costs.
• Construction Partner: Anvil Crawler Development Corp. (part of the Skyline group) was awarded a $1.85-million contract for civil and electrical work.
• Project 903 Permitting Delays:
  • Construction is delayed due to pending Official Plan Amendment (OPA) and Zoning Bylaw Amendment (ZBA) requirements in Armour, Ontario.
  • The delay is attributed to public opposition and council evaluation.
  • Commercial operation, originally targeted for April 2026, is now delayed.
  • ProjectCo has sent a notice of potential force majeure to the IESO regarding the delay.
  • Payments to Evlo for the 903 and OZ-1 projects have been delayed; negotiations for accommodation are ongoing with no certainty on the outcome.
• Acquisition Context: The SFF-06 project was acquired through Powerbank’s $45-million valued acquisition of Solar Flow-Through Funds Ltd. in July 2024.

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