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As most readers know, a terrible natural disaster struck the U.S. territory of Puerto Rico. On September 20, 2017; Hurricane Maria devastated this island. But the hurricane itself was only the
beginning of this disaster.
The hurricane literally wiped out Puerto Rico’s antiquated (and shamefully neglected) electrical grid. While its aging power plants remain, most of the flimsy infrastructure that was actually delivering electrical power to Puerto Rico’s population is simply gone.
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One Canadian company already has boots on the ground in terms of bringing
a practical solution to this disaster:
Enerdynamic Hybrid Technologies Corp. (
TSX: V.EHT,
OTCQB: EDYYF,
Forum). More on the answer later. First, laying out the full scope of the problem.
Even from right after the initial disaster, politicians and “experts” agreed that Puerto Rico’s electrical system needed to be rebuilt. More importantly, a completely new strategy was needed to deal with the extremely challenging parameters:
- Mass poverty in Puerto Rico means that residents have minimal funds to invest in rebuilding.
- The government is horribly indebted and the national power utility is bankrupt.
- Existing power plants are not proximate to most of the population. This makes rebuilding the old system both very expensive and impractical.
- Attempting to incorporate renewable energy (like solar power) is difficult because many structures lack the structural integrity to support traditional solar panels.
Given these onerous constraints (and the nature of politicians, in general), what has transpired since then in terms of restoring reliable electrical power to millions of people? Not much. A band-aid “fix” lasted only a few weeks before being disrupted by the first strong wind.
A
“working group” comprised of U.S. and Puerto Rico-based politicians as well as disaster relief agencies put forth a ballpark figure of roughly $17.5 billion as the price-tag to “Build Back Better” a new electrical system. But politics and the dithering of bureaucrats has delayed even a final decision on the overall strategy for alleviating this disaster.
Meanwhile, the people die.
A recent
BBC article has pegged the
real death-count in Puerto Rico from Hurricane Maria at
over 4,600 deaths – more than 70 times the official casualty total. What makes this a national disgrace for the United States is that
one-third of these deaths have come from interruptions in medical care due to lack of electricity.
In comparison, there was Hurricane Katrina, previously the low-water mark for the U.S. government in terms of abandoning its citizens in the face of a natural disaster. The final death-count from Hurricane Katrina was ‘only’ 1,833.
While the United States fiddles, Enerdynamic is forging ahead with its own rebuilding initiative in Puerto Rico, doing everything in its power to prevent the death-count from rising even further. How?
Making solar power practical. Anywhere. Everywhere.
One of the great limitations in bringing (decentralized) solar power to poorer populations in particular is the simple
weight of conventional solar panels. By the time these panels are bolted onto the walls and roofs of various structures, the total added weight is greater than what can be safely supported.
Enerdynamic’s solar panels are significantly lighter than competing solar panels, while delivering the same power and not losing anything in terms of their strength/durability. Indeed,
the solar panels that the Company is already retrofitting onto Puerto Rican structures are designed to be sturdy enough to withstand the next hurricane to hit the island.
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(click to enlarge) At the same time, Enerdynamic is not a charitable institution. It’s a publicly-traded company dedicated to generating profits for its shareholders. The Company knew
how to rebuild Puerto Rico’s electric system. What was needed before EHT could go to work was a solid business plan that didn’t expose Enerdynamic to any economic risks.
Step one: on
January 15, 2018; the Company announced a joint venture with Brieke Family Assets Ltd to manufacture the ENERTEC solar panels and systems that EHT was planning on distributing in Puerto Rico. The JV is known as CAT 5 Solar and Microgrids, LLC.
By
February 13, 2018; Enerdynamic already had its first Puerto Rican order. An order for 67 solar systems was received, at an average retail cost of $16,000 per system. On
May 7, 2018: EHT announced its second Puerto Rico order for solar panel systems.
However, there was still one piece missing in the overall strategy: financing. Enter Elevate Export Finance Corp. On
June 11, 2018; Enerdynamic announced a “strategic partnership” with Elevate, specifically to capitalize on the potential $17+ billion opportunity in Puerto Rico.
Here is the beauty of this deal for current shareholders and potential investors. Enerdynamic receives the orders. Elevate pays EHT for these orders – up front. Elevate Finance, in turn, is financially backed by Export Development Canada. Ultimately, reimbursement is expected from the U.S. government, but this is of no concern to the Company or its shareholders. They’re already paid.
Investors wanting more information on the full economic potential of Enerdynamic’s Puerto Rico mega-project should stay tuned for another Stockhouse feature. Slightly further down the road: another full-length feature article. This will update investors on other EHT mega-projects already in progress as well as a brand-new opportunity with multi-billion dollar potential.