Altius Renewable Royalties Corp., reports that Great Bay Renewables, its subsidiary that is jointly controlled with funds managed by affiliates of Apollo Global Management (“Apollo”), has entered into an agreement to acquire an existing royalty agreement (the “Royalty”) on a portion of an operating wind project (the “Project”) from Apex Clean Energy (“Apex”) for US$18 million, subject to standard working capital and other adjustments. The Project is an approximately 1 GW wind project located in Hansford County, Texas owned and operated by a top-tier renewables owner-operator.
“We are pleased to work with Apex and add the Royalty to our growing portfolio of operating project royalties. As this new royalty is entirely production volume based with no price exposure, it provides an attractive complement and diversification to our broader portfolio.”
Under the Royalty, Great Bay will receive a fixed dollar amount per megawatt hour produced from a distinct 658 megawatts of the Project which achieved commercial operations in September 2022. The Royalty was originally created by Apex in conjunction with the sale of the development project. Great Bay expects the Royalty to contribute approximately US$1.5 million to its revenue in 2023.
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Commenting on the investment, Frank Getman, CEO of Great Bay, said, “We are pleased to work with Apex and add the Royalty to our growing portfolio of operating project royalties. As this new royalty is entirely production volume based with no price exposure, it provides an attractive complement and diversification to our broader portfolio.”
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 1.4 GW of renewable power on operating projects and an additional approximate 6 GW 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 and Hodson Energy. 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.
SOURCE: Businesswire