Highlights:
- EarthRenew replaced air compressor on turbine generator, which is expected to allow the facility to generate power 24/7
- Installed an automated turbine alarm system
- Improved remote access for the turbine controls
- Prior to upgrades, electricity generation in Q1 generated $141,326 of revenue; the direct costs for the turbine unit were $30,926 and the gross margin was $110,400
TORONTO, May 12, 2020 (GLOBE NEWSWIRE) — EarthRenew Inc. (CSE:ERTH) (“EarthRenew” or the “Company”) is pleased to announce that it has upgraded components of its on-site power generation unit and is now capable of producing power 24/7, in time for peak summer demand. The upgrades to the power unit included replacing the air compressor for the gas turbine, installing automated alarm systems and enhancing remote access for turbine controls. While the turbine has been operating and able to take advantage of peak electricity demand in the past year, going forward these performance enhancements afford the Company the chance to operate with full uptime and to further offset operational expenses.
In the past quarter, electricity prices have fluctuated between $36.66 per MWh and $120.67 per MWh as reported by the Alberta Electric System Operator. EarthRenew showed power revenue for Q1 of $141,326, due in large part to electricity prices peaking in January. The direct costs for the turbine unit were $30,926 and the gross margin was $110,400.
The turbine’s performance upgrades are part of the recommissioning efforts at our Strathmore facility. The ability to produce power 24/7 optimizes turbine usage and prepares us for anticipated high electricity demand in the coming months. These upgrades also support the sale of power to on-site users and for the operation of our fertilizer production activities, once redeveloped.
EarthRenew CEO Keith Driver commented, “This is another step forward in recommissioning our site on the trajectory towards a commercially-ready organic fertilizer facility. The revenue from this asset is projected to help smooth cashflow needs over the short and long term.”
Driver further added, “With the summer just around the corner, the ability to operate 24/7 and to remotely adjust turbine operations gives us the potential to maximize operations when power demand spikes as a result of hot summer weather.”
