As recent market conditions for uranium and rare earths have not supported the construction of relatively high CAPEX mining and processing projects like Pele’s Eco Ridge project, the Company has expanded its business model to include electricity generation and energy storage projects, beginning in Elliot Lake, Ontario.
In September 2016, Pele signed a Sustainable Energy Development Agreement with the City of Elliot Lake under which Pele was appointed, on an exclusive basis, as the developer of energy and energy storage projects on City Lands through April 2018. The outstanding infrastructure in Elliot Lake, including natural gas pipelines with excess capacity, provides an opportunity for electricity cost reductions through on-site power generation. With Pele’s long-standing working relationships and the presence of its flagship Eco Ridge project, Elliot Lake is a logical fit for the launch of this new venture.
Pele’s interests in energy generation and storage projects are held in its wholly-owned subsidiary, Sage Power Corporation (SPC), which seeks to identify, design, develop, and operate energy projects that provide smart, sustainable, customized power solutions to municipal and commercial electricity consumers with large heat and power requirements. These consumers can benefit by locking into long-term, lower-cost electricity and thermal energy at no upfront cost while SPC stands to benefit from sources of new, long-term revenue.
In Elliot Lake, SPC is working with the manufacturers of advanced cogeneration systems and a team of energy industry experts and engineers, including HH Angus & Associates Limited, to design and permit behind-the-meter combined heat and power (CHP) cogeneration solutions that reduce costs, increase reliability, and conserve energy supplied by the Provincial power grid.
CHP provides efficient electricity generation that captures heat to provide useful thermal energy that would otherwise be lost as waste from the generator. CHP generators can double the energy efficiency from each unit of fuel consumed, compared to electricity-only gas fired generators, reducing costs and carbon emissions while also improving energy security and reliability.
In addition to behind-the-meter CHP generation in Elliot Lake and other municipalities where natural gas is available, SPC also seeks to provide energy solutions to remote and off-grid industrial and community applications in Northern Ontario where reliance on diesel generators inhibits growth and presents environmental challenges. With the advancement of renewable energy and smart microgrid technologies, SPC is pursuing various opportunities to implement sustainable, reliable, cost effective alternatives to diesel or expensive extensions to existing transmission lines.
Pele remains committed to advancing Eco Ridge as host to Canada’s first rare earth processing centre and its extensive NI 43–101 mineral resources continue to provide exposure and leverage to rare earths and uranium.
Some of the statements contained in this release are forward-looking statements, such as statements that describe Pele’s future plans, objectives or goals, including words to the effect that Pele or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.