COMMODITY HEDGING

 

At Syncarb; we recognize that market volatility for exported power sales and for purchased fossil fuels is a significant driver and contributor to profitability and have developed programs to mitigate the negative impacts which these two factors can have.​

Natural Gas Power Generation

 

The nature of Syncarb's natural gas power generation business model is that power plants are operationally intermittent and are only active on the basis of optimized electricity pricing available through AESO (Alberta Energy System Operator).  Given the nature of Syncarb's business model, it is not able to negotiate exclusive power purchase agreements and is reliant on power pricing at the moment the generator is activated.

Syncarb will work concurrently with Mr. Duncan Embry to review and devise and implement a hedging strategy when it is deemed financially rewarding and appropriate to do so.  This hedging strategy is dependent on power plant fleet capacity and operational availability.

Natural gas is an essential ingredient to operations and a significant cost to operations.  Every effort will be made to secure long term price commitments for operational security.  Various traders are employed in this strategy.

Syncarb has developed programs to mitigate negative impacts from commodities

".developed programs to mitigate the negative impacts..."

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T: 403-850-3570

 

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