Stone Mills Storage Project

Energy storage is the concept of capturing and retaining energy at one point in time, so that it can be used at another point in time. The most common forms of energy storage technologies are battery, pumped hydro, compressed air, and flywheel. Batteries, specifically lithium batteries, represent the most scalable form of energy storage technology because they can be installed nearly anywhere, have a small footprint, and are relatively inexpensive.

This project would utilize utility-scale lithium batteries. BluEarth is working with battery suppliers to select a specific lithium technology, but is it expect this project will consist of Lithium Iron Phosphate (LFP) technology.

Energy storage helps balance supply and demand on the electrical grid and can provide the following benefits:

• Cost Savings: Increases the efficiency and capabilities of existing electricity generation and transmission networks.
• Reliability: Provides backup power during grid disruptions and other emergencies.
• Flexibility: Energy storage can inject or extract electricity from the grid to exactly match demand patterns. This pairs well with renewable generation sources such as wind and solar.
• Lower Environmental Impacts: Relying on energy storage to regulate the electrical grid allows all generating facilities to operate more efficiently, which can reduce fuel consumption from conventional gas fired facilities.

Utility-scale battery energy storage system (BESS) installations have been in operation globally since 2008 starting in Japan. North America adopted the technology in 2016 with installation in Toronto, ON. This is an advanced technology that has been used in smaller applications that has been expanded to utility scale starting in 2016 in North America.

Early BESS installations include:

• Canada (Ontario): 13 MW Deltro Energy Inc BESS, 2017
•  U.S. (California): 8 MW Tehachapi Energy Storage Project (TSP), 2014
•  Australia: 30 MW Ballarat Energy Storage System, 2018
• U.K.: 25 MW Enel S.p.A. Tyneside BESS, 2018
• Japan: 2MW Japan Wind Development Co., Ltd, 2008
• China; 36WHh State Grid Corporation of China (SGCC), 2012

Batteries used in energy storage last approximately 20 years, or 6,000 cycles of charging. As the battery ages, the performance will gradually decline with time and based on the frequency in which it charges. As batteries age, their storage capacity decreases, similar to batteries used in everyday electronics such as your smartphone. To compensate for this aging process, batteries can be replaced or additional batteries can be added to maintain overall storage capacity.

Once the storage facility has reached the end of its usable life, the facility will be decommissioned. Decommissioning includes de-energizing the facility, removing all above ground equipment and structures, and restoring the land to its prior condition. At the end of a battery’s useful life, up to 95% of the battery can be recycled for use in new batteries. Many of the metals used in batteries hold their value beyond the life of the battery, and these recycled metals can be re-sold at prices that are beginning to compete with metal from mining operations.

This storage project would operate independently of our solar facility. The proposed facility will store surplus energy from the Hydro One grid (energy which could be generated by any source or project – solar, wind, nuclear, etc.) and charge the batteries during off-peak periods (hours) of high supply or low electricity demand usage across the Province and then will discharge that energy back to the grid to provide electricity during critical peak periods when electricity demand across the Province is high, or electricity supply from wind, solar, nuclear resources is low . This energy storage helps to provide reliability and stability to electricity systems by ensuring supply matches demand.

The only additional wires for this project would be the ~250 metre connection line to interconnect with Hydro One’s existing transmission lines.

BluEarth currently provides support to the local community through the Community Vibrancy Fund which was established for our Loyalist Solar Facility. Our Loyalist Solar Facility provides annual contributions of $145,000 to the Township of Stone Mills, in addition to regular community donations that BluEarth makes on behalf of the solar facility. The Loyalist Solar Facility agreement is public information located on the Stone Mills website at: https://stonemills.civicweb.net/filepro/documents/4311/.

To ensure direct and local benefit to the Township of Stone Mills, BluEarth is committed to providing an additional Community Vibrancy Fund on behalf of the Stone Mills Storage Project and will work in consultation with the Township of Stone Mills to establish this fund. The fund is intended to ensure that projects contribute their fair share towards the management and services provided by the Township.

No, BluEarth has not operated any BESS facilities. BluEarth is an experienced operator of other large power facilities in Ontario, and other locations in Canada and the United States.

E-LT1 is the IESO’s first large-scale energy storage procurement process since 2015. In 2015 the IESO awarded 9 energy storage contracts for a total of 16.75 MW capacity. 4 solid batteries (8 MW), 4 flow batteries (7 MW), and 1 compressed air system (1.75 MW). Each project received a 10-year contract from 1-2MW capacity. More information about the 2015 IESO storage projects can be found here: https://www.ieso.ca/corporate-ieso/media/news-releases/2015/11/iesoselects- new-energy-storage-projects

Larger systems ranging from 5 to 20 MW behind the meter battery energy storage systems are operating in Ontario at large industrial facilities. For example, Shell Canada’s facilities in Brockville and Sarnia employ 10 MW of battery energy storage at each location.

BluEarth takes a long-term approach to all its projects, and we maintain ownership from development to construction and operations. In the event of a sale or transfer of the project, contractual obligations would not dissolve but would transfer to the new owner. The IESO RFP and contract documents are publicly available, and the IESO encourages community feedback throughout the RFP process in progress now. https://www.ieso.ca/- /media/Files/IESO/Document-Library/long-term-rfp/E-LT1-Contract-incorporating-Addenda- 20230203.ashx

The community open house is planned for May 16, 2023, from 6:30 p.m. to 8:30 p.m. located at the Stone Mills Recreation Centre (713 Addington Street, Tamworth, ON). Notice of this meeting has been shared in the following ways:

• Advertisements in the local newspaper (Napanee Beaver) for two weeks prior
• Mail notices to all residents within 2km of the project location
• Email notice to all stakeholders who have contacted us regarding the project
• Notice to Council for posting on Township website and other mediums
• Posting to the public project website: http://bluearthrenewables.com/stone-mills

The Community Vibrancy Fund Agreement outlines the decommissioning requirements set forth by the Township of Stone Mills and should include Decommissioning Security as part of the agreement. For reference, the Loyalist Solar Community Vibrancy Fund Agreement can be found here: https://stonemills.civicweb.net/filepro/documents/4311/

BluEarth also includes reclamation and decommissioning requirements in all of our leases stating that we will be financially responsible for decommissioning all project components and to reclaim and restore any disturbed areas at the end of the project life.

There will be visual screening along the perimeter of the Project site to reduce visual impacts from Miller Road and the adjacent property. This can take the form of trees, shrubbery, berms, etc. An exact design will be determined based on site layout and feedback from adjacent landowners.

We intend to remove as few trees as possible to minimize the visual impact of the project. The tree line on Miller Road is planned to be kept in place, and additional tree planting may occur along Miller Road to improve the quality of this shelter belt and improve visual screening.

There will be some tree clearing will be required to construct this project, which would include areas such as:

• Transmission line routing
• Shelter tree rows within the project area
• Access roadways into the proposed project area

Minimizing and mitigating potential stormwater impacts are top of mind for BluEarth and we are planning to complete geotechnical and hydrology studies in the project area to better understand the existing conditions and potential impacts associated with project activities.  The results of these studies will be used to inform the overall design of the facility, including the development of a stormwater management plan.  The stormwater management, erosion, and sediment control mitigations included within the stormwater management plan will also be incorporated into the Environmental Protection Plan (EPP) for the project. The EPP will ensure that all potential impacts are appropriately mitigated throughout all phases of the project, including ensuring that adjacent properties are not impacted by runoff from the proposed project site.

BluEarth will also be likely seeking an Environmental Compliance Approval from the Ministry of Environment and Parks (MECP) for potential impacts to stormwater management systems.  The timing of these studies is dependent on the results of the IESO procurement, which we expect to receive in May/June 2023.

The project is still in the early stage of development and final site design will be informed by studies, such as those mentioned above.

BluEarth has hired a third-party to complete a desktop analysis of environmental resources within the project area and has proactively sited the initial layout from any potential wildlife features and habitats. The environmental field studies completed in 2023 will verify the presence of wildlife features and habitats and BluEarth’s approach is always to avoid these features and habitats, if practicable and feasible. All environmental-related permits and associated local, provincial, and federal reporting requirements will also be fulfilled well in advance of construction. A Project specific environmental protection plan will also be completed for the project which will assist BluEarth in fulfilling its goal of avoiding wildlife impacts and if unavoidable, minimizing these impacts.

No, the BESS system can safely be idle without generating heat for weeks at a time and will constantly be monitored to ensure that the system is operating effectively.

Yes, the environmental fieldwork and associated reporting will be completed by a reputable and experienced party.

The storage system and battery containers are designed with fire detection and suppression capabilities. In addition, all BluEarth facilities have a site-specific emergency response plan and a plan would be developed specifically for this proposed facility. In the event of a fire, emergency services would be called and would focus on preventative measures to ensure nothing else is impacted

In addition, specific to the Canadian Solar SolBank BESS technology proposed at Stone Mills, safety features include:

• Heat detector
• Smoke detector
• Combustible gas detector (CO, G2, CHx)
• Fire suppression (dry gas)
• Strobe and horn alarms
• Local and remote emergency shutoffs (BluEarth has 24/7 remote operations monitoring and four local operations staff in the area)

In addition, thermal management system includes:

• Liquid cooling/heating for batteries
• Air cooling for electrical components
• Humidity control

We have not yet engaged with the local fire department but fully intend on working with emergency service providers throughout the development of the Project to receive input on the overall site design and layout, as well as the emergency response plan. We will also want to make sure that these service providers are adequately resourced and trained to respond to any emergency event(s) associated with the Project.

This technology uses an advanced thermal management system to regulate the temperature of the batteries and prevent overheating. This helps to prevent thermal runaway, which can lead to a fire. Also, this technology has a battery management system that monitors the state of the batteries and ensures that they are operating within safe parameters. Further, in the case of a fire, this technology is equipped with thoroughly designed fire detection and ventilation system to report the alarm and mitigate explosion risks. The technology has a complete set of UL9540A testing reports from cell, module to unit level based on latest UL9540A test standards. UL9540A is a standard for Test Method for Evaluating Thermal Runaway Fire Propagation in Battery Energy Storage Systems.

This response has been provided by the technology manufacturer, Canadian Solar.

Each SolBank unit comes with an enclosure that is IP55 / NEMA 3R rating, which prevents liquid from getting in/out. The enclosure design is capable of controlling leakage occasions including coolant leakage from the thermal management system. Liquid sensors are located at the bottom floor of the SolBank enclosure which reports any detected liquid inside the enclosure.

• Cooling pipe, cooling plate, liquid cooling pump and pack will go through airtight qualification process before installing into the SolBank enclosure.
• SolBank is equipped with BMS insulation detection, liquid cooling chiller coolant pressure detection and coolant level detection if there is a coolant leak.
• SolBank enclosure is equipped with liquid detection at the floor.
• Battery pack has IP65 to prevent coolant leakage between battery packs.

This response has been provided by the technology manufacturer, Canadian Solar.

Project will undertake the necessary measures to avoid stray voltage by hiring qualified contractors that adhere to the design and inspection requirements of the Electrical Safety Authority.

Stray voltage is related to transmission of electricity; not the production/generation of electricity. Causes of stray voltage can include:

• Poor grounding practices or conditions
• Improper or inadequate wiring
• Breakdown of insulation in old wires or electrical loads
• Dirty, dusty, corroded or damaged electrical boxes and devices
• The Project will avoid new causes of stray voltage by adhering to standard utility practices and meeting the stringent design and inspection requirements of the Ontario Electrical Safety Authority (ESA).

If complaints are received after the Project is constructed, a stray voltage inspection could be completed to address possible causes and ways to avoid the stray voltage. Liability for stay voltage should fall on the utility or electrician responsible for the improper wiring or distribution of power.

The battery technology we intend to use for this project is Lithium Iron Phosphate, which has a significantly lower fire risk. Even so, the project will complete an air quality dispersion modeling assessment to predict maximum concentrations of air contaminants and model the dispersion pathway in the unlikely event of a fire.

We were unable to find NFPA 9540. There is the UL 9450 Energy Storage System (ESS) Requirements document. This is a safety standard for utility connected electrical components used in an energy storage system that is updated frequently, as mentioned in your question. The technology being considered certifies its product as per current UL9450 A, which is the test criteria as part of the UL9450 standard.

The energy storage project requires an emergency response plan that will be developed in collaboration with the Fire Chief to document extinguishing procedures. These procedures will be created as part of the stormwater management plan. The stormwater management plan will form part of the submission to the municipality for site plan approval, as well as be required as part of the Environment Compliance Approval (ECA) process.

The site will be designed in accordance with all building codes, which should address risks associated with the region. The site design will consider drainage, among other factors to minimize flood risk. Further, BluEarth will maintain a robust insurance program covering loss events including natural catastrophes such as tornados.

BluEarth takes climate change very seriously and we believe we are contributing to solutions to this problem. This energy storage system will be emission-free except for a standby generator to maintain power systems during longer outages. For example, outages in Quebec caused by the April 2023 ice storm.

The project will include an emergency response plan and will ensure that local Fire Department is part of this planning. BluEarth has offered to provide training to the Fire Department to ensure they are fully prepared to respond to an emergency at this project.

BluEarth will engage with the local fire department and emergency service providers throughout the development of the Project to receive input on the overall site design and layout, as well as the emergency response plan. We are committed to ensuring that these service providers are adequately resourced and trained to respond to any emergency event(s) associated with the Project.

In addition, the Township of Stone Mills has an established Community Vibrancy Fund agreement designed for new developments to pay their fair share towards the management and services provided by the township. All new renewable energy projects planned in the Township of Stone Mills require this agreement and we encourage community members to provide council feedback on this publicly available form.

Minimizing and mitigating potential stormwater impacts are top of mind for BluEarth and we are planning to complete geotechnical and hydrology studies in the project area to better understand the existing conditions and potential impacts associated with project activities. The results of these studies will be used to inform the overall design of the facility, including the development of a stormwater management plan. The stormwater management, erosion, and sediment control mitigations included within the stormwater management plan will also be incorporated into the Environmental Protection Plan (EPP) for the project. The EPP will ensure that all potential impacts are appropriately mitigated throughout all phases of the project, including ensuring that adjacent properties are not impacted by runoff from the proposed project site. BluEarth will also be likely seeking an Environmental Compliance Approval from the Ministry of Environment and Parks (MECP) for potential impacts to stormwater management systems. The timing of these studies is dependent on the results of the IESO procurement, which we expect to receive in May/June 2023. The project is still in the early stage of development and final site design will be informed by studies, such as those mentioned above. Information from the hydrology study will also be used to assess groundwater movement and potential impacts to groundwater resources within the project study area.

This site was chosen because of its proximity to existing transmission line infrastructure in addition to co-locating with BluEarth’s existing solar facility.

In total, the fenced area of the Project will be about 25 acres. The site will not be a square, it will be narrow and long parallel to Miller Rd. The exact Project layout will be determined following additional studies.

We are proposing interconnection to the Hydro Ones lines via an approximately 250 meter connection line. Preliminary work is still underway to determine the design of the required connection line and we welcome feedback from the community. This will also be based on the design as determined by Hydro One, based on the proximity to their infrastructure

We are currently undertaking desktop analysis to determine property setbacks. Further information on setbacks will be gathered during the upcoming phase of the project with continued municipal and agency consultation to ensure all setback requirements are adhered to.

The exact number of battery containers is still being determined and is contingent on the supplier and site layout. Our preliminary estimates assume 400 containers. The proposed battery structures are similar to a sea can, and the dimensions are roughly 6 m long x 2.5 m wide x 3 m wide,.

The Township of Stone Mills Official Plan identifies the land use designation of the Project area as Rural Lands. Based on consultation with the municipality, an Official Plan Amendment and zoning Amendment are not likely to be required. Local permits anticipated for the Project include a site plan approval and building permit, both of which will be submitted closer to construction, once the Project layout has been finalized.

We do not have plans to expand the site. However, over the life of the Project there will be several battery replacements to ensure the installed energy capability is maintained. These future augmentations will be incorporated in the initial design of the facility, initial project boundary, and the overall regulatory evaluations and approvals.

Each battery container will either be installed on its own individual foundation (slab on grade) or on 4 to 6 concrete piles, which will be determined during the detailed design period of the Project.

BluEarth is committed to the promotion and integration of human rights considerations in all aspects of its business activities. We believe in the effective abolition of child labour and the elimination of all forms of forced or compulsory labour, human trafficking and slavery and we take steps to ensure that they do not exist in our operations and supply chain. These are primarily considerations when selecting a battery supplier for this project.

Mapping will be updated with lot lines and legal descriptions in the next revision. Environmental field studies and land survey will improve the map once their work is complete later this year. BluEarth has purchased the lands on which the project will be located.

BluEarth has a Remote Operations Centre (BEROC)located in Calgary, Alberta to monitor all of our projects across Canada and the US. We also utilize it to monitor facilities for Ontario Power Generation.

We will monitor this project from that BEROC, however a detailed communications protocol has yet to be developed for the Stone Mills storage project and is subject to local availability and reliability of networks and infrastructure. The response below is our general practice for remote project and will be customized to fit with the availability of local services.

• Proposed technology use of hardwired or microwave and satellite or cellular communication mediums with automatic failover to remotely monitor facilities.
• Redundancy through a fiber or microwave service for primary communication with a satellite or cellular backup connection.
• While a site specific, Stone Mills Storage, communications protocol will be developed during the detailed engineering of the project, in general, the redundant communications streams are used to provide monitoring and control capabilities to our remote operations centre to ensure our operators can safely and efficiently operate the facility. Data from the facility is collected and displayed to the operator in real-time, allowing them to monitor and operate the facility and respond to any alerts. The remote operations centre is staffed 24/7 to ensure the facility is monitored continuously. The operators in the remote operations centre coordinates with the facility operations team to address any operational, maintenance, or performance issues.

Site security for the proposed Stone Mills Storage project will be similar to BluEarth’s solar facilities that include perimeter fencing, and CCTV at entrances. Additionally, each BluEarth facility is monitored in 24/7 real-time by our remote operations center as well as local operations staff near each facility.

We are currently undertaking desktop analysis to determine property setbacks. Further information on setbacks will be gathered during the upcoming phase of the project with continued municipal and agency consultation to ensure all setback requirements are adhered to. The setbacks applied to wetland features within or in close proximity to the project study area will be informed by the results of the environmental field studies that will be completed this year. Once these field studies have been completed, we would be happy to share the results with you. See also Question 3.4.

We expect to know by the end of April. If we are successful in obtaining a contract and in the permitting an approvals process, construction could begin in summer 2025 with operations beginning in spring 2026.

Update as of April 2023:

IESO results have subsequently been delayed, and we expect to know if we are successful by June 2023. If we are successful in obtaining a contract and in the permitting an approvals process, construction could begin in summer 2025 with operations beginning in spring 2026.

Yes, all the normal regulatory, consultation and permitting processes will still occur if BluEarth is awarded a contract. For BluEarth, ongoing engagement is an important part of our approach, and we will continue to engage with the community and individual landowners throughout the process.

Yes, the Project is in its preliminary planning and development phase to submit into the IESO’s upcoming expedited procurement. There are still many specific Project details that would be determined if the project is successful in securing a contract. Ongoing consultation is an important part of BluEarth’s approach, and we will continue to engage with you throughout this process.

The Project is participating the Independent Electricity System Operator’s (IESO) Request for Proposals Process to support future energy demands in Ontario. Results of this process are expected in June 2023, and should BluEarth be awarded a contract, the Project is anticipated to be fully operational by spring 2026.

We are planning to construct the project in 2025 with an anticipated 6–9-month construction schedule. While it is too early in the development process to comment on the exact working hours anticipated during construction, all construction activity will comply with the noise and working hour bylaws of the Township of Stone Mills.

The E-LT1 procurement has a term that expires on April 30, 2047. This end date is fixed regardless of the commercial operation date. Commercial operation of the Stone Mills Storage project is planned for 2026, suggesting the term to be 21 years. Additional details on the E-LT1 process can be found on the IESO’s website at: https://www.ieso.ca/en/Sector-Participants/Resource-Acquisition-and-Contracts/Long-Term-RFP-and-Expedited-Process