Mr. Keith Driver reports
EARTHRENEW ANNOUNCES STRONG ELECTRICITY GENERATION REVENUE FOR FIRST 2 MONTHS OF 2021, EASILY SURPASSING THE SAME PERIOD LAST YEAR; ENEL-X AGREEMENT FOR OPERATING RESERVES
Earthrenew Inc. had impressive revenue generation from its power production facility in Strathmore, Alta., for the first two months of 2021. The Strathmore plant is capable of generating up to four megawatts per hour by using low-cost natural gas to run the Rolls Royce turbine.
For January and February, 2021, Earthrenew generated 845.17 megawatt-hours of electricity, which it sold into the provincial grid for an estimated $342,727 in electricity sales revenue, substantially surpassing settlement revenue for the same period in 2020 of $118,222. 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 77-per-cent gross margin on electricity production.
Chief executive officer Keith Driver commented: "Freezing temperatures pushed up demand for electricity throughout the early months of 2021. Additionally, severe storms at the site of provincial and country interconnection points impacted supply to our own province, providing the opportunity for us to fill a supply gap in the system as people rushed to warm their houses. While this combination of events was opportune, we were delighted to be able to take advantage of the supply drop and generate unexpected revenue that we can apply to our operations. As we come out of COVID, we see increasing electricity demand continue to drive up electricity pricing."
Enel-X agreement for operating reserves
Earthrenew also announced today that it executed an agreement dated March 23, 2021, with the North American division of Enel-X, a well-established player in the electricity industry, to participate in an operating reserves program in Alberta. Under this program, Earthrenew is compensated for its ability to provide short-term power supply to the Alberta power grid to support grid stability.
While Earthrenew will continue to be able to provide power to the Alberta grid when electricity prices are significantly elevated, participating in the operating reserves program will allow Earthrenew to generate additional revenue during times when it will not otherwise be generating power. Pursuant to the agreement, Earthrenew will be compensated to be on call for generation in the event that the market experiences a shortfall of supply and the Alberta Electric System Operator (AESO) requires reserves to balance supply and demand.
Mr. Driver explained: "Looking ahead, we plan to supplement our electricity peaking revenue by participating in the operating reserves program with Enel-X. This will allow us to further optimize revenue, without sacrificing our ability to take advantage of peaking events."
About Earthrenew Inc.
Earthrenew's mission is to support a farm system that puts healthy soils and grower profitability back on the table. It aims to be a driving part of the regenerative agriculture movement by offering fertilizer solutions that feed the soil in an effort to strengthen the earth's ability to restore itself. It is building a unique, sustainable facility to generate premium organic fertilizer from animal waste, using a natural-gas-fired turbine that also produces up to four megawatts per hour of low-cost electricity. The exhausted heat from the turbine is used to convert animal waste into certified organic fertilizer.
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