PowerBank Corporation Installs First Battery Energy Storage System in Ontario with Royal Bank of Canada Loan Backing

PowerBank Corporation has installed its first battery energy storage system (BESS) in Ontario, marking its entry into the rapidly growing battery storage market. The 4.99 MW BESS, part of the SFF-06 project, is backed by a $25.8 million loan from Royal Bank of Canada and is expected to generate strong financial returns through a 22-year contract with the Independent Electricity System Operator. The project also qualifies for the 2024 Clean Technology Investment Tax Credit, enhancing its financial performance and aligning with PowerBank's mission to accelerate renewable energy adoption.

PowerBank Corporation (NASDAQ: SUUN) has installed its first battery energy storage system (BESS) in Ontario, marking a significant milestone in its entry into the rapidly growing battery storage market. The 4.99 MW BESS, part of the SFF-06 project, was recently completed in Cramahe, Ontario, and is expected to generate strong financial returns through a 22-year contract with the Independent Electricity System Operator (IESO).

The project, valued at $45 million, was acquired by PowerBank through the acquisition of Solar Flow-Through Funds Ltd. in July 2024. It is backed by a robust $25.8 million loan from Royal Bank of Canada (RBC), which serves as Lender, Administrative and Collateral Agent, and Green Loan Structuring Agent [1]. This financial partnership underscores PowerBank's commitment to innovative, eco-conscious energy solutions.

The SFF-06 project is owned by 1000234763 Ontario Inc. (ProjectCo), in which PowerBank holds a 50% stake, with the remaining 50% owned by a partnership of First Nations communities in Ontario. The project is expected to deliver 4.74 MW of daily contract capacity for 251 business days annually, powering Ontario's grid with reliable, clean energy.

The project also qualifies for the 2024 Clean Technology Investment Tax Credit, offering up to 30% reimbursement of eligible capital costs. This refundable credit enhances SFF-06's financial performance while aligning with PowerBank's mission to accelerate renewable energy adoption through strategic government incentives.

The SFF-06 project is a significant development for Ontario's energy landscape, blending cutting-edge technology, strategic partnerships, and sustainable investment to drive the clean energy revolution forward. However, there are several risks associated with the development of the project, including the need for required permits, the continued availability of third-party financing arrangements, and the potential for government policy changes that could impact the economic viability of future projects.

References:

[1] https://www.prnewswire.com/news-releases/powerbank-suun-begins-installation-of-first-battery-energy-storage-system-in-ontario-302521916.html