Aypa Power Proposes $750 Million Battery Projects to City Council

City council members will convene on Monday to consider a proposal from Aypa Power Canada LP for two significant battery energy projects. These initiatives aim to enhance the electricity supply and battery storage capacity across Ontario, with an overall investment of $750 million. Aypa Power is seeking support in principle for the construction and operation of a long-term capacity services project on municipal lands.

The proposal includes securing an option to lease 30 acres of property located at 1091 Great Northern Road. Aypa Power is applying to the Ontario Independent Electric System Operator (IESO) to advance these projects, which together would generate a total of 570 megawatts (MW) of energy. The plan comprises two separate applications: one for a 380 MW facility and another for a 190 MW facility.

According to a report prepared for the council, this strategy of submitting standalone projects enhances the likelihood of success in a competitive application process with limited capacity available. Should the applications receive approval, Aypa Power and the City of Sault Ste. Marie would enter into an agreement that includes annual community benefit payments of $3,000 for a duration of 20 years, totaling $1.7 million.

In addition to the benefit payments, the agreement would establish a community fund starting in 2029, providing $25,000 annually for local organizations to apply for funding. Aypa Power has committed to contributing $10,000 to this fund before its official launch. The city would also gain from property taxes on the leased land.

Most of the proposed site is currently zoned for heavy industrial use; however, the northwest corner is designated rural, and a watercourse traverses the property, which is zoned for environmental management. If approved, discussions will be necessary to minimize any impacts on this watercourse during the facility’s construction and operation.

Construction of the battery energy projects is projected to take between 12 to 16 months, creating an estimated 200 construction jobs and generating an economic impact of approximately $30 million. Once operational, the facility is expected to sustain around six ongoing jobs, contributing an annual economic impact of $850,000 to the local economy.

The decision by the city council on this proposal will play a crucial role in shaping the future of energy supply and sustainability in the region.