Highlights:
- Phase 1 of Strathmore Plant restart close to completion with electricity generation targeted for late April 2019
- Strathmore Plant turbine can be run on opportunistic basis as peaking electricity supplier to the Alberta grid
- Over the last 30 days electricity prices have ranged from $27.05/MW to $762.54/MW with an average price of $47.73/MW
TORONTO, April 11, 2019 (GLOBE NEWSWIRE) -- EarthRenew Inc. (CSE:ERTH) (“EarthRenew” or the “Company”) reports that Phase 1 of the redevelopment of its Strathmore facility (the “Strathmore Plant”) is nearing completion. It is currently expected that all permits and testing will be completed by mid-April which will allow for the restart of power generation operations at the Strathmore site. Upon finalization of all final safety checks targeted for late April 2019, EarthRenew anticipates that it will be able to run the turbine on an opportunistic basis to create electricity for sale to Alberta’s electricity during peak pricing hours.
As currently configured, the Strathmore Plant is capable of producing up to four MegaWatts per hour (4MWh) of low-cost electricity powered by a natural gas fired industrial size Rolls Royce turbine. Electricity produced at the Strathmore Plant can be sold to generate revenue for the Company as a peaking electricity supplier to the Alberta grid.
Although capable of running 24 hours a day, 7 days a week, the Strathmore Plant turbine will run during periods when the price paid for electricity in Alberta starts peaking. The configuration allows the turbine to be turned on and off to respond to electricity price volatility on an hourly basis. Over the last 30 days, prices have ranged from $27.05/MW to $762.54/MW with an average price of $47.73/MW as reported by the Alberta Electric System Operator (“AESO”).
Phase 2 of the Strathmore Plant restart is targeted for the second half of 2019. EarthRenew intends to use about 1.5MWh of the 4.0 MWh generated by the Strathmore Plant to power the Strathmore dryer to produce pelleted organic fertilizers made from cattle manure waste. The Strathmore Plant is located on a 25,000 head cattle feedlot.
The unique patented EarthRenew waste conversion process capitalizes on the high temperature exhaust from the on-site natural gas-fired turbine for the thermal drying of fresh manure, a process which removes pathogens, pharmaceutical residue and weeds that when left untreated can contaminate soil and leach into waterways. The resulting organic granular product is an ideal fertilizer for use in home gardens, organic farming, marijuana cultivation, turf and in municipal areas subject to chemical fertilizer bans or restrictions.
CEO Keith Driver commented, “We believe electricity sales can be an ongoing source of revenue for EarthRenew and will help support us as we move into Phase 2 of the fertilizer production restart. Our systems will allow us to turn the electricity production on quickly to respond to peaking prices as they occur. AESO’s transparent price reporting allows small scale electricity producers like EarthRenew to step in as suppliers when the published price provides a suitable margin. Our analysis of the pricing that has occurred over the last 30 days shows that the EarthRenew turbine would have been running 23% of the time. While the prices can vary substantially from one month to the next, the turbine restart puts EarthRenew in the position to take full advantage of these pricing opportunities.”
About EarthRenew
EarthRenew is a low-cost sustainable power-generation company with a patented production process that converts livestock waste to nutrient-rich, slow-release pelleted organic fertilizer. EarthRenew converts natural gas to electricity from an industrial-sized gas turbine which it intends to capitalize on through various revenue drivers. These include selling surplus electricity to the electrical grid and to cryptocurrency miners which can co-locate on site and to dry manure feedstock to produce high value organic fertilizer. The Company has a commercial scale operation in Strathmore, Alberta.
For additional information, please contact:
Keith Driver
CEO of EarthRenew
Phone: (403) 860-8623
E-mail: kdriver@earthrenew.ca
Cautionary Note regarding Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to EarthRenew’s ability to restart electricity production at the Strathmore Plant, EarthRenew’s ability to sell electricity to the electrical grid or to cryptocurrency miners, EarthRenew’s ability to execute its business plan and EarthRenew’s proposed business activity. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; regulatory risks; and other risks of the energy, fertilizer and cryptocurrency industries. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.