- The Strathmore Plant generated an estimated $377,667 in revenue from electricity sales during 2020 with a 74% gross margin
- The cold week of January 12th to 18th saw peak power production pricing for the year with an average power price of $405.65/MWh and power prices above $900/MWh 24% of the time during that week
- Once fertilizer production restarts, electricity production is expected to continue to generate an important secondary stream of revenue
TORONTO, Feb. 01, 2021 (GLOBE NEWSWIRE) — EarthRenew Inc. (CSE:ERTH) (“EarthRenew”, or the “Company”) is pleased to announce a successful power generation year in 2020. The power generation facility at EarthRenew’s Strathmore, Alberta facility (the “Strathmore Plant”) is capable of generating up to 4 MW per hour by using low-cost natural gas to run the Rolls Royce turbine. In 2020, EarthRenew generated 1,500 MWh of electricity which it sold to the municipal grid for an estimated $377,667 in electricity sales revenue. The direct costs to run the turbine throughout 2020 were $99,400. Due to its operation as a peaking plant (whereby electricity is only supplied by the plant to the electrical grid if certain minimum power price thresholds are met), the Strathmore Plant was able to generate a 74% gross margin on electricity production.
This electricity was delivered to the Alberta grid taking advantage of significant price peaking on the grid. The pool price for electricity reached $999.99 per MWh in January 2020, fueled by a drastic dip in temperatures in the province. Over the last year, the average power price was $46.75/MWh as reported by the Alberta Electric System Operator (AESO).
The months of January, July and October 2020 were particularly profitable for the Company, with peaking electricity demand resulting from cold and hot weather extremes. The Strathmore Plant generated $176,192 in January 2020, $70,093 in July 2020 and $107,225 in October 2020.
CEO Keith Driver commented, “The results from electricity sales over the last year indicate that we have been successful in our operations for the facility as a peaking plant. We intend to continue to operate the facility as a peaking plant until we recommission our existing operations. Once fully recommissioned, the Strathmore Plant will only require approximately 1.5 MW of the 4 MW capacity we have available from the turbine so selling the excess electricity to the grid on a peaking basis or to an onsite user such as a co-located agriculture facility represents an important secondary revenue stream for an EarthRenew facility. Right now, the revenue we generate from electricity sales helps to offset costs as we move towards restarting fertilizer production.”