PowerBank Corporation (NASDAQ: SUUN) announced its 4.99 MW battery energy storage system in Cramahe, Ontario has reached commercial operation and begun generating revenue.

The project, known as BESS SFF 06, operates alongside an existing solar installation at the same site. PowerBank secured a 22-year contract with Ontario's Independent Electricity System Operator under the Expedited Long-Term RFP program in July 2023.

The contract provides a fixed capacity payment of $1,221 per MW per business day, above the weighted average price of $876 per MW for storage projects in the same procurement round. The facility will provide 4.74 MW of daily contract capacity for 251 business days annually.

PowerBank holds an indirect 50% interest in the project company, with the remaining stake owned by a partnership of First Nations communities in Ontario. The project received financing through a $28.1 million combined loan from Royal Bank of Canada covering this facility and another battery project.

The project qualifies for Canada's Clean Technology Investment Tax Credit, which provides up to 30% reimbursement of eligible capital costs for clean technology installations introduced in 2024.

"Reaching commercial operation on BESS SFF 06 is a deeply meaningful milestone for our team," said Dr. Richard Lu, PowerBank's CEO. "Battery energy storage is a critical pillar of a resilient, renewable grid."

PowerBank acquired its interest in the project through its $45 million acquisition of Solar Flow-Through Funds Ltd., which closed in July 2024. The company reports a development pipeline exceeding 1 GW and has completed over 100 MW of renewable energy projects.

The information is based on a company press release statement.