EarthRenew Signs Power Purchase Agreement With a Third Party for Up to 3.0 MW of Power at Its Strathmore Facility
TORONTO, Oct. 03, 2019 (GLOBE NEWSWIRE) — EarthRenew Inc. (CSE:ERTH) (“EarthRenew” or the “Company”) is pleased to announce that it has entered into a power purchase agreement (“PPA”) with BTF Blockchain Inc., a company focused on mining cryptocurrencies, (“BTF”) for up to 3.0 MW of power at its Strathmore, Alberta facility. The pricing for the PPA sets a floor price and then floats with the market price allowing EarthRenew to fully capitalize on the revenue potential of its electricity generation capacity.
Under the PPA, EarthRenew has the right to sell solely to the electricity grid when power prices set by the Alberta Electrical System Operator are forecast to exceed $0.065 per kWh. This allows EarthRenew to continue to garner the revenue premiums during periods of peak pricing in the deregulated Alberta electricity market. Pricing peaked at $0.856 per kWh in September 2019.Further, the PPA also provides a floor price for power from the facility, $0.045 per kWh, allowing for continuous operation of the turbine at the site. This exceeds the minimum price for power seen in the market of $0.018 per kWh this past September. EarthRenew anticipates that it will start to sell power to BTF in Q4 of this year, expanding thereafter.Chairman David Argyle commented, “The power purchase agreement is expected to allow our facility to generate cash flows from its electricity production on a more consistent basis than selling to the grid alone, while still capturing the upside when prices are peaking. We look forward to working with our new partner as we begin the next phase of recommissioning the fertilizer facility.”Pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101″), entering into the PPA with BTF is a “related party transaction” as 25% of BTF’s shares are beneficially owned by Keith Driver, EarthRenew’s chief executive officer. The Company is exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the transactions contemplated by the PPA by virtue of sections 5.5(d) and 5.7(c), respectively, of MI 61-101, as the subject matter of the PPA consists of the sale of electrical energy generated by the Company to BTF in the ordinary course of EarthRenew’s business. The PPA was considered and unanimously approved by the board of directors of the Company. Mr. Driver abstained from voting on this matter.About EarthRenewEarthRenew 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: firstname.lastname@example.org Cautionary Note Regarding Forward-Looking InformationThis 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 generate and sell electricity to the electrical grid, BTF or to other cryptocurrency miners, and EarthRenew’s ability to execute its business plan and 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.