Powerbank installs Cramahe energy storage system

Ms. Tracy Zheng reports POWERBANK (SUUN) BEGINS INSTALLATION OF FIRST BATTERY ENERGY STORAGE SYSTEM IN ONTARIO Powerbank Corp. has installed its cutting-edge 4.99-megawatt battery energy storage system in Cramahe, Ont., at the project known as SFF-06. This milestone marks Powerbank's bold entry into the rapidly growing battery storage market. The first five of nine EVLO battery containers are 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 $25.8-million loan from Royal Bank of Canada, serving as lender, administrative and collateral agent, and green loan structuring agent. This financial partnership underscores Powerbank's commitment to innovative, ecoconscious energy solutions. SFF-06 is owned by 1000234763 Ontario Inc. (ProjectCo), in which Powerbank holds a 50-per-cent stake, with the remaining 50 per cent owned by a partnership of first nations communities in Ontario. Acquired through Powerbank's $45-million valued acquisition of Solar Flow-Through Funds Ltd. in July, 2024, this project positions the company in a battery storage market projected to increase to $31.2-billion by 2029, growing at a 16.3-per-cent compound annual growth rate, according to Fortune Business Insights. 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 $1.85-million contract, Anvil Crawler brings its expertise to ensure seamless project execution. Long-term value with independent electricity system operator contract: In July, 2023, SFF-06 secured a 22-year contract through the IESO expedited long-term RFP (E-LT1 RFP). With a fixed capacity payment of $1,221 per megawatt per business day -- well above the $876 per MW average for storage projects, this contract ensures strong financial returns. Once operational, SFF-06 will deliver 4.74 MW of daily contract capacity for 251 business days annually, powering Ontario's grid with reliable, clean energy. Cleantech incentives: The project qualifies for the 2024 clean technology investment tax credit, offering up-to-30-per-cent reimbursement of eligible capital costs. This refundable credit enhances SFF-06's financial performance while aligning with Powerbank's mission to accelerate renewable energy adoption through strategic government incentives. Powerbank's SFF-06 project is a significant development for Ontario's energy landscape, blending cutting-edge technology, strategic partnerships and sustainable investment to drive the clean energy revolution forward. 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, to proceed with construction of the 903 project, an official plan amendment and a zoning bylaw amendment are required from Armour, Ont. On Nov. 8, 2022, the ProjectCo received a municipal support resolution, which was unanimously approved by the council for Armour. However, the OPA/ZBA has been delayed as a result of certain public opposition and the council's evaluation of how to respond to such opposition. A delay in obtaining the necessary OPA/ZBA means that ProjectCo may not be able to commence construction on the originally planned timeline, and delaying construction means that achieving commercial operation on or before April, 2026, will be delayed. To extend the deadline for commercial operation under the E-LT1 contract for the project, ProjectCo has sent the IESO a notice of potential force majeure event to the OPA/ZBA delay. The timing of the issuance of the OPA/ZBA and its impact on project schedule remain uncertain. The permitting delays have delayed certain payments due to Evlo for the battery energy storage system for the 903 project and OZ-1 project (which is also undergoing permitting). Evlo and the company are negotiating an accommodation on the payment deadlines, but there is no certainty on the outcome of such negotiations. About Powerbank Corp. Powerbank is an independent renewable and clean energy project developer and owner focusing on distributed and community solar projects in Canada and the United States. The company develops solar, battery energy storage system and electric vehicle charging projects that sell electricity to utilities, commercial, industrial, municipal and residential offtakers. The company maximizes returns through a diverse portfolio of projects across multiple leading North America markets, including projects with utilities, host offtakers, community solar and virtual net metering projects. The company has a potential development pipeline of over one gigawatt, and has developed renewable and clean energy projects with a combined capacity of over 100 megawatts built. We seek Safe Harbor.