Highlights:
• EarthRenew generated a total of $505,097 in revenue, with an 81% gross margin in Q1 2021
• Settlement revenue is an estimated $382,928
• Fortis Option M payments for January and February 2021 totaled $122,169
TORONTO, May 6, 2021 (GLOBENEWSWIRE) — EarthRenew Inc. (CSE: ERTH; OTCQB: VVIVF; Frankfurt: WIMN) (“EarthRenew ” or the “ Company ”), a Canadian company focused on regenerative agriculture solutions with a secondary revenue source from electricity production, today posted its Q1 2021 revenue generation results from its power production facility in Strathmore, Alberta (the “Strathmore Plant”). The Strathmore Plant can generate up to 4 MW per hour by using low-cost natural gas to run the Rolls Royce turbine.
For January to March 2021, EarthRenew generated 1,016.42 MWh of electricity which it sold into the Alberta electricity grid for an estimated $382,928 in electricity sales revenue, substantially surpassing settlement revenue for the same period in 2020 of $141,327. The company generated an additional $122,169 from Fortis Option M payment credits in January and February 2021 bringing total revenue to date for that period to $505,097. 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 an 81% gross margin on electricity production.
CEO Keith Driver commented, “We continue to generate strong revenues from our power peaking activities at the Strathmore Plant enabling us to offset costs in our primary line of business as a regenerative agriculture input provider.” EarthRenew expects the strong revenue of this first quarter of 2021 can be maintained once provisions are in place to service the recently announced ENEL-X and cryptocurrency mining agreements announced on March 31, 2021 and April 23, 2021, respectively.
New EPEA Approval for Power Production
EarthRenew is also pleased to announce that it has received an updated Environmental Protection and Enhancement Act (EPEA) approval from Alberta Environment and Parks (AEP) to operate a power production facility at the Strathmore Plant. EarthRenew has been operating the power facility on an extended EPEA approval, originally meant to expire in 2019, but extended until October 2021. This new EPEA approval enables the Company to operate as a power production facility for a period of 10 years, ending April 14, 2031.
Mr. Driver commented: “EPEA approval to operate our power facility at Strathmore has now been secured for another 10 years, giving us the stability we require to move forward with power agreements like that signed with ENEL-X and a cryptocurrency mining firm. These types of arrangements allow us to squeeze further revenue from this asset as we build our regenerative crop input business.”
