Sky Quarry Inc. (NASDAQ:SKYQ) has issued a request for proposals to evaluate the commercial use of its 7‑megawatt power generation system at the PR Spring facility in Utah. The RFP invites partners who can help the company monetize the existing gas‑turbine capacity, potentially creating a new revenue stream for the micro‑cap refinery operator.
The PR Spring plant houses two Solar Centaur Caterpillar gensets that together produce 7 MW of electricity. The company estimates that on‑site gas generation could deliver power at a cost of roughly $0.05 per kilowatt‑hour. The turbines are fully operable and have undergone recent maintenance, positioning them for immediate deployment if a partner is found.
Sky Quarry’s financials underscore the urgency of the move. Over the last twelve months the company posted a negative EBITDA of $9.72 million and a market capitalization of $13.24 million, while its stock price has fallen more than 56% over the past year. The RFP is part of a broader effort to offset operating costs and improve cash flow amid ongoing liquidity pressures.
Management says the RFP is driven by a redesign of the PR Spring facility’s planned operations. The new layout will not require the full 7 MW of installed capacity, leaving excess power that can be sold to utilities or commercial customers. Monetizing this surplus is intended to generate cash that can be used to support the refinery’s development and reduce debt exposure.
The announcement was met with a 21.48% increase in the company’s valuation, adding roughly $3 million to its market value. The lift reflects investor optimism that the new revenue stream could help stabilize the company’s financial position.
CEO Marcus Laun said, “We have been making steady improvements at PR Spring that better position the site for development. Through this RFP, we are looking to engage with partners who can make practical use of the generation capacity already in place.”
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