PowerBank Corporation expects its 4.99 MW battery storage project in Ontario to commence operations during January 2026. The information was provided through the company’s official statement. The SFF-06 project in Cramehe, Ontario is completing final commission with EVLO. Furthermore, it includes nine battery containers with the project expected to deliver 4.74 MW of daily contract capacity for 251 business days annually.

PowerBank holds a 50% stake in the project through the 1000234763 Ontario Inc. On the other hand, 50% is owned by a partnership of First Nations Clean Energy. The company acquired the project through its $45 million purchase of Solar Flow-Through Funds Ltd. In July 2024.

The project secured a 22-year contract in July 2023 through the Independent Electricity System Operator’s Expedited Long-Term RFP. . It was with a fixed capacity payment of $1,221 per MW per business day. The project also qualifies for the 2024 Clean Technology Investment Tax Credit, offering up to 30% reimbursement of eligible capital costs. Clean energy storage projects are starting to take shape across Canada with Ontario commissioning projects such as the PowerCo SE Gigafactory Project to facilitate energy needs and demands.

Scope on the PowerBank Battery Storage Project in Ontario

PowerBank battery storage project in Ontario is just one of the projects that the company is currently focusing on. It also provided updates on two other battery storage projects in the region. The company terminated contracts for the OZ-1 project due to permitting delays. Because of this, they paid a $475,000 termination fee and $100,000 in retrofit cost reimbursements.

PowerBank will also pay an additional $512,000 for extended warranties on the SFF-06 and 903 projects. PowerBank develops solar and battery energy storage projects across Canada and the United States. It has over 100 MW of completed projects and a development pipeline exceeding 1 GW. Despite the progress and benefits, there are also various risks the company highlighted.

For instance, the commercial operation of the Project is subject to receipt of final technical and regulatory approvals. Furthermore, the degradation of battery storage capacity can occur over time based on the number of discharge cycles.

Project Factsheet:

PowerBank Battery Storage Project in Ontario

Overview

• PowerBank will start operations of its initial battery energy storage in Ontario.
• See Figure 1: Commercial operations anticipated: January 2026.

Developer / Owner

• Business: PowerBank Corporation.

Ownership Structure:

• PowerBank: 50%
• First Nations partnership: 50%

Project Details

• Project Name: SFF-06
• Place: Cramahe, Ontario, Canada.
• Technology Partner: EVLO
• System Size: 4.99 MW
• Contracted Capacity: 4.74 MW/day of business.
• Battery Specifications: 9 battery containers.

Contract & Revenue Structure

• Type of Contract: Long-term capacity contract.
• Counterparty: Independent Electricity System Operator (IESO)
• Procurement Program: Accelerated Long-Term RFP.
• Contract Term: 22 years (granted July 2023)
• Capacity Fee: 1,221 per MW per day of business.
• Days of operation: 251 working days in a year.

Financing & Incentives

• Obtained through the acquisition of Solar Flow-Through Funds Ltd. by PowerBank (July 2024) at a price of 45M.
• Canada Clean Technology Investment Tax Credit is eligible.
• Tax Credit: 30 percent reimbursement of approved capital expenditures.

Project Status

• Climax commissioning in progress.
• Technical and regulatory approvals pending.
• Strategic Context
• PowerBank portfolio: 100+ MW of realized projects.
• Pipe development: More than 1 GW in Canada and the U.S.
• The initial battery storage facility that Marks PowerBank has in operation within Ontario.

Key Risks

• Approval time delays Regulatory, technical.
• The degradation of battery with life.