Shares of PowerBank Corporation (NASDAQ:PBK) climbed 14.4% in premarket trading Friday following the announcement that the company had been awarded a $2.95 million contract by the U.S. Army to install a solar array and electric vehicle charging facilities.
The contract was issued to PowerBank’s United States subsidiary, Abundant Solar Power Inc., and was awarded by the United States Department of Defense and the Department of the Army. The scope of work covers the Armed Forces Reserve Center Farmingdale in Farmingdale, New York, a facility used by the Army Reserve, Naval Reserve, Marine Corps Reserve, and the New York National Guard.
PowerBank secured the work after responding to a federal solicitation overseen by the U.S. Army Corps of Engineers. The project is intended to provide onsite power generation and electric vehicle charging capacity to the reserve center. Company officials have received a Notice to Proceed and will begin the engineering, procurement and construction phases under the contract.
This engagement represents PowerBank’s first contract with the United States Federal Government. The work is classified under NAICS code 236220, which covers Commercial and Institutional Building Construction.
The federal award comes after Abundant Solar Power Inc. recently won state-level contracts with the New York Department of Military and Naval Affairs. Those state contracts called for construction of multiple ground-mounted and rooftop solar projects as well as battery energy storage systems.
PowerBank has completed in excess of 100 MW of projects to date and reports a development pipeline that exceeds 1 GW.
Context and next steps: With the Notice to Proceed issued, the company will move forward with the detailed engineering, procurement of equipment and construction activities required to deliver onsite solar generation and EV charging infrastructure at the Farmingdale reserve center. The award is cataloged under the NAICS code for commercial and institutional building construction.
Market reaction: The stock response in premarket trading reflected investor attention to the federal contract announcement and the expansion of the company’s project footprint to include its first federal-government engagement.
Summary
PowerBank’s U.S. arm, Abundant Solar Power Inc., won a $2.95 million contract from the Department of Defense and the Department of the Army to deliver a solar array and EV charging infrastructure at the Armed Forces Reserve Center in Farmingdale, New York. The company has received Notice to Proceed and will commence engineering, procurement and construction. This is the company’s first federal project, and it follows recent state-level work with New York military and naval authorities. PowerBank reports more than 100 MW completed and a development pipeline exceeding 1 GW.