UGE Announces Q3 2020 Project Updates
Commercial Operation on First Self-Financed Projects and Backlog Now Exceeds US$100 million
Toronto, Ontario--(Newsfile Corp. - October 13, 2020) - UGE International Ltd. (TSXV: UGE) (OTCQB: UGEIF) (the "Company" or "UGE"), a leader in the commercial and community solar sector, is pleased to announce the following operational updates from the third quarter ended September 30, 2020.
In Q3, UGE USA commissioned and energized two New Jersey rooftop solar projects, which mark the completion of UGE's first two self-financed systems. These projects are the first two for a real estate owner that owns properties across the metro-New York area; UGE is now in the process of developing the next project with this client. Additionally, UGE is monetizing renewable energy credits produced by the two systems through the New Jersey SREC and TREC programs, providing additional economic returns to UGE as the project owner.
In New York, UGE reached mechanical completion on two community solar systems in Staten Island and Queens. Both projects are expected to start producing electricity by the end of the year. UGE also signed a new 340kW New York City rooftop project, the first for a new real estate client. Furthermore, UGE is in the process of mobilizing construction on a project in Westchester, NY, with mechanical completion targeted before year-end.
In Maine, UGE signed several new agreements, including two ground-mounted projects totaling 11.9MW and two rooftop school projects totaling 1.7MW. UGE also received interconnection study responses for two projects that are nearing their deployment phase for early 2021, and expects to reach mechanical completion on one of Maine's first community solar projects in Q4. Management believes Maine will become an important market for the Company, helping to cap a transformative 2020, which should be the Company's best year despite COVID-19 related dislocations.
UGE Philippines reached construction milestones on three rooftop systems in Q3:
- final completion on a 260kW system;
- substantial completion on a 650kW system; and,
- final completion for Central Seafoods, UGE's first self-financed project in the Philippines. Energization was realized for this project in the first week of October.
UGE Philippines is also making good progress with its Robin Group portfolio; a 656kW system is close to completion, and two projects with aggregate size of 826kW were recently mobilized in Metro Manila and Cebu.
UGE's consulting services subsidiary, UGEngineering, completed project milestones for several clients in Q3. UGEngineering finalized a microgrid project concept design for an off-grid mining community, paving the way to drafting of detailed engineering and construction documents ahead of the client's planned construction in 2021. UGEngineering also completed initial design and pre-interconnection applications as part of a 378MW portfolio in the Western US, showing the business unit's broad range in capabilities. Closer to home, UGEngineering finished engineering drawings for a City of Toronto wastewater treatment facility.
In the third quarter, UGE announced that 100% of the warrants from its February 2020 private placement were exercised. The Company used a portion of the proceeds to strengthen its balance sheet by settling a note its UGE Canada RE Ltd. subsidiary had outstanding, resulting in a gain of approximately US$1 million.
In addition, UGE held its Annual General Meeting on September 18, 2020, at which shareholders approved all matters up for vote, including the election of Peter Van Egmond Rossbach to UGE's Board of Directors. For the director's 2020-2021 term, which started on the date of the AGM, the Company issued a total of 330,000 options at a strike price equal to the closing share price on the date of the AGM, which was CAD$0.78 per share.
About UGE International Ltd.
UGE delivers immediate savings to businesses through the low cost of solar energy. We help commercial and industrial clients become more competitive by providing low cost distributed renewable energy solutions at no upfront cost and maximum long-term benefit. With over 400MW of global experience, we work daily to power a more sustainable world. Visit us at www.ugei.com.
For more information, contact:
+1 917 720 5685
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