Mr. Jean-Louis Servranckx reports

AECON PARTNERSHIP EXECUTES AGREEMENT FOR INNOVATIVE ONEIDA ENERGY STORAGE PROJECT IN ONTARIO

Oneida Energy Storage LP, a consortium in which Aecon Group Inc. concessions will be an equity partner, has executed an agreement with the Independent Electricity System Operator (IESO) for the Oneida energy storage project to deliver a 250-megawatt/1,000-megawatt-hour energy storage facility near Nanticoke, Ont. Under the agreement, Aecon has been awarded a $141-million engineering, procurement and construction (EPC) contract by Oneida. The value of the contract was added to Aecon's construction segment backlog in the fourth quarter of 2022.

NRStor, the Six Nations of the Grand River Development Corp. (SNGRDC), Northland Power and Aecon concessions will be the owners of Oneida, which will provide electricity storage services to the IESO through a 20-year agreement and receive fixed availability payments from IESO for capacity services, as well as revenue from energy sold into the Ontario electricity grid and operating reserve. Tesla is the battery supplier and has executed a battery supply agreement with Oneida.

The project is the largest of its kind in Canada and amongst the largest in the world. It will provide a gigawatt-hour of much needed capacity to the Ontario grid, while prioritizing local indigenous partnerships and environmental benefits. The scope of work includes designing the facility, procuring balance of plant facility equipment, installing equipment foundations, electrical houses, battery transformers, switchgears and underground cabling, as well as constructing a high-voltage substation, and commissioning and start-up activities. Construction is expected to commence in the second quarter of 2023, with anticipated completion in 2025.

"As a leader in the energy transition, Aecon is working at the forefront to build and operate sustainable infrastructure and the battery energy storage market offers robust opportunities for continued growth in a significant global market," said Jean-Louis Servranckx, president and chief executive officer, Aecon Group. "We are pleased to combine the multidisciplinary expertise of Aecon's construction and concessions teams to deliver this sustainable project that will improve electricity management during peak demand, reduce GHG [greenhouse gas] emissions, and support economic development and long-term partnerships with indigenous communities -- creating energy savings to meet the needs of future generations. Building on our existing Aecon-Six Nations joint venture with the SNGRDC, this partnership is a natural progression, and we look forward to working with all partners to deliver this innovative project," said Mr. Servranckx.

The project will ensure the supply of clean, reliable electricity capacity for Ontario while reducing greenhouse gas emissions by 4.1 million tonnes -- the equivalent of taking 40,000 cars off the road every year. The facility will draw and store existing surplus baseload and renewable energy during off-peak periods and release that energy back to the grid when demand is at its peak. In addition, it will help stabilize Ontario's electricity sector by providing important grid-balancing services and benefits to provincial ratepayers, including reducing the need and cost associated with using gas-fired power plants during times of peak demand.

The Canada Infrastructure Bank has played a key role supporting project development and is collaborating with the Oneida energy storage project on an investment agreement. Natural Resources Canada has provided $50-million in funding from the Smart Renewables and Electrification Pathways program. The project contributes to Canada's continuing transition to a net-zero economy by 2050 and commitment to achieving a 100-per-cent net-zero-emitting electricity system by 2035.

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About Aecon Group Inc.

As a Canadian leader in construction and infrastructure development with global expertise, Aecon Group strives to be the No. 1 Canadian infrastructure company and is proud to be recognized as one of the Best Employers and Best 50 Corporate Citizens in Canada. Aecon safely, profitably and sustainably delivers integrated solutions to private- and public-sector clients through its construction segment in the civil, urban transportation, nuclear, utility and industrial sectors, and provides project development, financing, investment and management services through its concessions segment.

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