Nov 5 2014
Enerdynamic Hybrid Technologies Corp. announced today that it has entered into an agreement with Reliant First Nation Limited Partnership to acquire up to 46 Megawatts of solar energy power generation contracts known as projects from Reliant.
The 46 Megawatts of projects, representing a total of 176 solar energy systems to be installed on various school rooftops in Ontario, were awarded to Reliant under the Ontario Feed in Tariff ("FIT") 3.0 program. Under this program the Ontario government agrees to purchase the energy output of each system for 20 years at a guaranteed purchase price, for electricity generated, at a fixed rate of 32.9 cents per kilowatt hour. It is anticipated that the total project portfolio will produce more than 58 Million hours of electricity per annum. The total project cost is anticipated to be $150 million over a 3 year period with up to 90% being financed through non-recourse and non-dilutive project and off-take financing.
John Gamble, CEO of EHT said, "This transaction is a key part of our three pronged revenue generation model which includes owning and operating commercial scale projects, selling our "Ener" micro-utility product line as well as our energy installation services. We have an ability to finance the majority of these projects through non-dilutive financing options." He continued, "These projects fit perfectly with our strategy of adding world-class recurring revenue and EBITDA generating projects to our portfolio while we continue to grow the "Ener" product lines."
Once acquired, these contracts will represent one of the largest revenue generating commercial rooftop solar portfolios in Canada. The projects will be constructed over a period of 3 years on the rooftops of one of Canada's largest school boards. EHT will supply the projects with solar panels and inverters manufactured from its manufacturing facility in Welland, Ontario as well as all other system components and installation services. The projects will provide up to 4,500 homes in Ontario with clean energy. In addition the projects will displace approximately 1,000,000 metric tons of carbon dioxide emissions over their 20-year operational period and create over 300 direct manufacturing and installation jobs.
Over the next 3 years Reliant will work in consultation with EHT to ensure all of the projects are built and reach commercial operation. "We have been developing this premier portfolio for more than 4 years and are pleased to partner with EHT to bring these projects to commercial operation. We chose to work with EHT because of their solar expertise and capability in Tier 1 equipment procurement, installation and financing," says Shawn O'Reilly, President of Reliant.
The projects are anticipated to begin construction in January, 2015 and EHT anticipates that up to 16 Megawatts per annum will be constructed and connected into the Ontario electricity grid. While the binding agreement sets out all of the material terms of the acquisition with Reliant, the transaction is subject to the finalizing of a definitive purchase agreement to purchase the units of Reliant to be completed in the next 30 days.
EHT's business strategy is to offer micro utility energy products, the "Ener" product line, designed for distributed small scale power generation; own and operate commercial scale projects with long term contracts and recurring revenue; and supply equipment and installation services to third party projects.