EarthRenew (CSE: ERTH) this morning reported its power production revenue for calendar year 2020. The company revealed total revenues of $377,667 for the year, generated through operating the power production facility as a peaking plant.
The power generator itself is capable of producing up to 4MW per hour, with the firm generating a total of 1,500MWh last year from the facility. With the company effectively operating the generator as a “peaking plant,” meaning the generator is only turned on at significant price peaking points throughout the year, the company was able to generate gross margins of 74% at the facility.
January, July, and October were the most profitable during the period, a function of cold and hot weather increasing demand for power. Those months respectively saw revenues of $176,192, $70,093 and $107,225 as a result of high demands for power on the Alberta energy grid. The average energy price throughout the year amounted to $46.75 per MWh, however at these peak times, prices were as high as $999.99 per MWh.
While revenues amounted to $377,667 for the year from power generation, costs amounted to just $99,400.
“The results from electricity sales over the last year indicate that we have been successful in our operations for the facility as a peaking plant. We intend to continue to operate the facility as a peaking plant until we recommission our existing operations. Once fully recommissioned, the Strathmore Plant will only require approximately 1.5 MW of the 4 MW capacity we have available from the turbine so selling the excess electricity to the grid on a peaking basis or to an onsite user such as a co-located agriculture facility represents an important secondary revenue stream for an EarthRenew facility.”Keith Driver, CEO of EarthRenew
EarthRenew last traded at $0.385 on the CSE.
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