Pele Mountain Resources, headquartered in Toronto, Canada, is expanding its business model to include electricity generation and energy storage, citing a prolonged downturn in the rare earth and uranium markets.
The company announced that the City of Elliot Lake, located in Ontario, has agreed to enter into a sustainable energy development agreement with Pele Mountain Resources. The agreement appoints Pele as the developer of energy and storage projects on an exclusive basis on City Lands until May 1, 2018.
The deal “sets out a framework for … mutually beneficial long-term energy services agreements to increase the City’s energy efficiency and to facilitate growth and diversification of the City’s economy,” according to Pele’s press release. “Initial projects will focus on the City’s electricity usage and cost reduction at its own facilities.”
Pele President and CEO Al Shefsky revealed that the company has already assessed opportunities in Northern Ontario and sees great opportunity in the future.
“The outstanding infrastructure in Elliot Lake, including natural gas pipelines with excess capacity, provides an opportunity for electricity cost reductions through on-site, behind-the-meter power generation at City facilities. With our flagship Eco Ridge Project in Elliot Lake, we believe that launching this new venture here makes great business sense for Pele and the City,” Shefsky said.
Why Every Rooftop Solar System Needs Energy Storage https://t.co/13upLAza4p via @sharethis
— Pele Mountain (@Pele_Mountain) July 8, 2016
To start with, Pele will implement behind-the-meter electricity generation at Elliot Lake. The idea is to reduce reliance on more costly electricity supplied by the Provincial power grid.
Overall, the company will be first focusing on natural gas and then including combined heat and power systems, renewable sources, and energy storage.
Pele is also still committed to its Eco Ridge Project, which is home to Canada’s first rare earth processing centre.