EarthRenew Inc (CSE: ERTH) this morning provided a market update for its electricity production facility in Strathmore, Alberta. The facility saw strong demand for the first two months of 2021 with production significantly exceeding the year ago period.
The plant for the first two months of 2021 reportedly generated 845.17 MWh of electricity, resulting in estimated revenues of $342,727. Year over year revenues improved significantly, with the year ago period recognizing revenues of just $118,222. The facility operates currently as a peaking plant, with power generated only during minimum power price thresholds, resulting in gross margins of 77%.
Furthermore, the company has also entered into an arrangement with Enel-X for its operating reserves program. The program will see the company compensated for being “on-call” for short-term power production to assist in grid stability. The arrangement will enable the facility to remain operating as a peak processing facility, while also generating further revenues when power production would otherwise not be occurring.
“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.”
Keith Driver, CEO of EarthRenew
EarthRenew last traded at $0.385 on the CSE.
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