PowerBank begins installing first battery storage system in Ontario

PowerBank Corporation (NASDAQ: SUUN) has started installing its first battery energy storage system in Ontario, marking the company's entry into the battery storage market. The company began installation of five of nine EVLO Battery Containers for the 4.99 MW system in Cramahe, Ontario, at the SFF-06 project site.

The project is financed through a $25.8 million loan from Royal Bank of Canada, which serves as lender, administrative agent, and collateral agent for both the SFF-06 project and a second initiative. The SFF-06 project is owned by 1000234763 Ontario Inc., in which PowerBank holds a 50% stake, with the remaining 50% owned by a partnership of First Nations communities in Ontario.

PowerBank acquired the project through its $45 million acquisition of Solar Flow-Through Funds Ltd. in July 2024. The company has contracted Anvil Crawler Development Corp., part of the Skyline Group of Companies, to handle civil and electrical work under a $1.85 million contract.

The SFF-06 project secured a 22-year contract in July 2023 through the Independent Electricity System Operator's Expedited Long-Term RFP. The contract provides a fixed capacity payment of $1,221 per MW per business day, above the $876 per MW average for storage projects. Once operational, the system will deliver 4.74 MW of daily contract capacity for 251 business days annually.

The project qualifies for the 2024 Clean Technology Investment Tax Credit, offering up to 30% reimbursement of eligible capital costs. PowerBank noted that the battery storage market is projected to reach $31.2 billion by 2029, growing at a 16.3% compound annual growth rate, according to Fortune Business Insights.

The company disclosed risks associated with the project, including permitting requirements, financing availability, construction risks, and battery degradation over time. A second project, 903, remains in the permitting process, with construction delayed due to required Official Plan Amendment and Zoning By-law Amendment approvals from the Town of Armour, Ontario.

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