Altius Renewable Royalties Announces New US$30 Million Investment with Apex Clean Energy
Altius Renewable Royalties (ARR) reports a $30 million royalty investment by Great Bay Renewables in Apex Clean Energy's Angelo Solar project. The project is expected to be operational in May 2024 and will be sold to Meta under an environmental attribute purchase agreement.
The $30 million royalty investment by Great Bay Renewables into Apex Clean Energy's Angelo Solar project represents a significant financial commitment in the renewable energy sector. This transaction indicates a robust confidence in the long-term viability of solar energy projects. From a financial perspective, the investment is structured with varying royalty rates, which could be designed to mitigate risk and ensure an adequate return on investment over time. Given that the full capacity of the project will be sold to Meta under an environmental attribute purchase agreement, it underlines a secured revenue stream, which is attractive to investors looking for stable and predictable cash flows.
Furthermore, the involvement of Apollo-managed funds, a well-known private equity firm, could be seen as a positive signal to the market, potentially leading to a reevaluation of ARR's stock. It is important to monitor the project's progress towards its commercial operation date in May 2024, as any delays could impact expected revenue streams and therefore investor sentiment.
The Angelo Solar project's potential impact on the renewable energy market is substantial, considering its size of 195 MWac, which adds a considerable amount of clean energy to the grid. The involvement of Apex, a leader with a large portfolio of renewable resources, suggests that the project is backed by experienced management. The deal with Meta for the purchase of environmental attributes not only contributes to Meta's sustainability goals but also sets a precedent for other tech companies to engage in similar agreements, potentially influencing the broader market for renewable energy.
For stakeholders in the renewable energy sector, this investment by Great Bay could signal an increasing trend of royalty financing as an alternative to traditional debt and equity structures. This could provide a new avenue for financing that may be more attractive to certain projects due to the potential for lower capital costs and the non-dilutive nature of royalty investments.
The royalty investment in the Angelo Solar project is a clear indication of the growing economic importance of environmental sustainability in business decisions. The environmental attribute purchase agreement with Meta reflects a larger trend where companies are actively seeking to reduce their carbon footprint. This is not only a response to regulatory pressures but also to consumer and shareholder demand for environmentally responsible operations.
Investments in renewable energy projects like Angelo Solar are expected to have positive externalities, such as reducing greenhouse gas emissions and contributing to energy independence. These projects can also stimulate local economies through job creation during construction and operation phases. However, it is critical to assess the long-term sustainability of such projects, considering factors like technological advancements, changes in regulatory frameworks and the scalability of renewable energy sources.
02/29/2024 - 11:35 AM
All $ references in US unless otherwise indicated
ST. JOHN’S, Newfoundland and Labrador --(BUSINESS WIRE)--
Altius Renewable Royalties (TSX:ARR) (OTCQX:ATRWF) (“ARR”) reports that Great Bay Renewables (“Great Bay”) today announced it has entered into a $30 million Tom Green County, Texas (“Angelo”) which is anticipated to achieve commercial operations in May 2024. Great Bay is jointly controlled by ARR and certain Apollo-managed funds (NYSE: APO), who have funded the transaction on an equal basis.
Apex is an established industry leader in origination, commercialization, construction and operation of utility-scale renewable energy projects, with one of the largest portfolios of renewable resources in the nation. The full capacity of Angelo will be sold to Meta under an environmental attribute purchase agreement.
The royalty investment has been structured using royalty rates that vary over time and achieve Great Bay’s investment hurdles.
Frank Getman, CEO of Great Bay, commented, “Angelo Solar is a great project with a strong off-take contract and should provide a stable stream of revenue to Great Bay for years to come. We are pleased to support Apex’s efforts to speed and shape the energy transition through this investment in a soon-to-be operating project.”
Great Bay was advised on this transaction by an advisory team from CCA Capital LLC led by Martin Pasqualini and a legal team at Pierce Atwood LLP led by Kris Eimicke.
About ARR
ARR is a renewable energy royalty company whose business is to provide long-term, royalty level investment capital to renewable power developers, operators, and originators. ARR has 33 renewable energy royalties representing approximately 2.4 GW of renewable power on operating projects and an additional approximate 6GW on projects in development phase, across several regional power pools in the U.S. The Corporation also expects future royalties from GBR's investments in Bluestar Energy Capital, Hodson Energy and Hexagon. The Corporation combines industry expertise with innovative, partner-focused solutions to further the growth of the renewable energy sector as it fulfills its critical role in enabling the global energy transition.
Forward-looking information
This news release contains forward‐looking information as defined under Canadian securities laws which reflect management’s current expectations. Some of the specific forward-looking statements contained herein include, but are nonlimited to, the projected revenues on the Royalty. The statements are based on reasonable assumptions and expectations of management and ARR provides no assurance that actual events will meet management's expectations. In certain cases, forward‐looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although ARR believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Readers should not place undue reliance on forward-looking information. ARR does not undertake to update any forward-looking information contained herein except in accordance with securities regulation. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward-looking statements. Additional information about risks and uncertainties is contained in the filings of ARR under the Company’s profile at www.sedarplus.ca .
View source version on businesswire.com: https://www.businesswire.com/news/home/20240229940175/en/
Flora Wood
Flora@arr.energy
Ben Lewis
Ben@arr.energy
Source: Altius Renewable Royalties
What is the amount of the royalty investment in Apex Clean Energy's Angelo Solar project?
Great Bay Renewables has entered into a $30 million royalty investment with Apex Clean Energy for the Angelo Solar project.
When is the anticipated commercial operations start date for the Angelo Solar project?
The Angelo Solar project is expected to achieve commercial operations in May 2024.
Who are the entities involved in funding the transaction for the royalty investment?
The transaction for the royalty investment is funded on an equal basis by Great Bay Renewables and certain Apollo-managed funds.
Which company is an established industry leader in origination, commercialization, construction, and operation of utility-scale renewable energy projects?
Apex Clean Energy is an established industry leader in the renewable energy sector.
Who will the full capacity of the Angelo Solar project be sold to?
The full capacity of the Angelo Solar project will be sold to Meta under an environmental attribute purchase agreement.
