Alkaline Fuel Cell Power Corp said that its PWWR Flow brand is advancing an estimated C$2.2 million combined heat and power (CHP) project for a condominium in mid-town Toronto, Canada.
The deal is expected to generate more than C$16 million in total revenue for PWWR Flow over a 25-year energy service agreement (ESA).
In June this year, AFCP announced the launch of its PWWR Flow Streams brand following the acquisition of the CHP assets of the AI group of companies in April.
"Our PWWR Flow brand is positioned to deliver more immediate revenue and contribute to earnings for AFCP as a complement to our longer-term, hydrogen-powered alkaline fuel cells," Frank Carnevale, CEO of AFCP, said in a statement. "We are actively moving through our $50 million sales pipeline of CHP projects, and we have already begun discussions to grow beyond it."
READ: Alkaline Fuel Cell Power unveils PWWR Flow Brand for combined heat and power (CHP) division
The latest CHP project would produce electricity and heat on a 24/7 basis for the condominium, and the electricity will be sold to Condo Corp at up to a 20% discount to the market price that the Condo Corp would otherwise pay to their local distribution company.
The heat produced will be sold at the price equivalent to the condominium's current heating cost.
Alkaline Fuel Cell Power said it was "immediately" commencing the connection impact assessment study, required to connect in Toronto Hydro service territory, as well as the final engineering design. It expects to order the CHP engine in the fourth quarter of this year and does not anticipate any supply chain issues with delivery.
AFCP added that it intends to expand its asset installation base by leveraging ongoing revenue and earnings generated through PWWR Flow as it continues to develop the $50 million worth of PWWR Flow projects in its pipeline over the next few years.
The company had around $3.1 million in cash at the end of the second quarter. To supplement this cash balance, the company anticipates securing project debt on CHP systems, AI 2191 Yonge Ltd, and this latest project, by Q4 2022. In the interim, AFCP will continue to allocate its current cash toward further projects development.
AFCP is a diversified investment platform developing affordable, renewable, and reliable energy assets and cleantech.
Contact the writer at giles@proactiveinvestors.com