An Ontario development agreement will make PowerBank provide early-stage services for a BESS opportunity intended for IESO's LT2(c-2) procurement. PowerBank also holds a right of first refusal for EPC work if a contract is granted and will assist with exploring a potential 18 MW BESS in Hamilton.
SNAPSHOT
Company: PowerBank Corporation
Counterparty: 1001634281 Ontario Inc.
Location: Ontario, Canada
Project Type: BESS development opportunity
Procurement: IESO LT2(c-2)
Development Stage: Early development
EPC Option: Right of first refusal
Hamilton Capacity: Potential 18 MW BESS
PowerBank Corporation, a Canada-based renewable and clean energy project developer, has entered into a Fee for Service Development Agreement with 1001634281 Ontario Inc., which is connected with the Electric Vehicle & Green Energy Advancement Association Canada. Under the agreement, PowerBank will provide early development services for a BESS project intended for submission to the Independent Electricity System Operator's Second Long-term capacity procurement request for proposals, Long-Term 2 LT2(c-2).
If a contract is granted under the LT2(c2) program, PowerBank will enter into a fee-for-service agreement to advance the contract to the notice-to-proceed stage after full permitting. The company will also have a right of first refusal to serve as the EPC provider for the project if a contract is awarded. Separately, the release says that PowerBank will assist 10001634281 Ontario Inc. in exploring a potential 18 MW BESS in Hamilton, Ontario, using a different numerical company identifier from the one stated in the agreement paragraph.
The LT2(c-2) RFP is the second capacity-stream window under IESO's Long-Term 2 procurement. IESO operates Ontario's electricity market and directs the day-to-day operation of the province's power system. The procurement is intended to secure new capacity and energy resources through the 2030s and beyond, while the first LT2 capacity window resulted in contracts for battery energy storage projects. IESO has also stated that additional energy storage will be needed on the Ontario grid to help manage system peaks and maintain reliability as older generation resources retire or undergo planned outages.
PowerBank CEO Dr. Richard Lu has said that the agreement gives the company an opportunity to compete in Ontario's storage procurement market and builds on its experience developing the BESS SFF 06 project. The company has separately disclosed debt settlement agreements covering $1,396,717 in outstanding legal-fee debt. It plans to settle $817,332 through approximately 1,297,352 common shares priced at $0.63 per share, while the remaining debt would be paid in cash after certain project debt transactions. The share issuance is subject to regulatory approvals and a statutory four month and one day hold period.
PowerBank develops PV and BESS projects for utility, C&I, municipal and residential off-takers in Canada and the USA. The company states that its potential development pipeline exceeds one gigawatt and that it has developed more than 100 megawatts of renewable and clean energy projects that have been built.