EarthRenew Reports Power Generation Revenues Of $378,000 For 2020
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.
FULL DISCLOSURE: EarthRenew Inc is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover EarthRenew Inc on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
