ReVolve Renewable Power Corp (TSX-V:REVV) has announced the sale of its 250MW Parker Solar and Storage Project and the 1,000MW Bouse Solar and Storage Project to ENGIE IR Holdings LLC, a wholly owned subsidiary of ENGIE SA, a global leader in the energy sector.
The sale of the projects was completed under a share purchase agreement dated January 10, 2023. ENGIE has extensive renewable energy operations across the US, Mexico and Canada.
In a statement, Steve Dalton, CEO of Revolve commented: "We are delighted to announce the sale of our Bouse and Parker solar & storage projects to ENGIE. This is a significant transaction for the company and marks the sale of our first utility-scale projects from our US development portfolio. It successfully demonstrates our development approach as well as our strategy in working with experienced utility partners to deliver significant returns for our shareholders."
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Dalton added: "The transaction will also provide the company with additional resources to advance its remaining development portfolio, while also evaluating opportunities to add further greenfield project opportunities to its active development portfolio in the near term.
"We look forward to continuing to supporting the team at ENGIE in developing the projects to a construction-ready stage."
The total consideration payable by ENGIE is within the range of guidance previously provided by the company for the sale of utility-scale development assets. It includes an upfront payment of US$2 million (inclusive of the reimbursement of development costs), which has been paid on completion of the transaction.
The remaining consideration is linked to each of the projects successfully completing the following development milestones:
- The completion of further interconnection studies;
- Issuance by ENGIE of a notice to proceed construction works to the applicable EPC contractor; and
- On the commissioning date, with such date being the date that a project has been synchronized to the grid and is capable of delivering all of its installed capacity to the grid.
The first of these milestones is expected to be achieved in 2023 when further interconnection studies are issued, the company said.
On completion of the transaction, ENGIE acquired 100% of the shares in Revolve Renewable AZ LLC and Revolve Parker Solar LLC on a cash and debt-free basis.
ENGIE will be responsible for the further development of the projects including all future development costs and other financial liabilities.
As part of the transaction the parties have entered into a put option agreement allowing ENGIE to sell the projects back to the company for a limited period following receipt of the results of the next interconnection studies due for each project. Should ENGIE exercise this put option, the company will repurchase the respective project, while also refunding ENGIE and development expenses incurred or reimbursed.
The Bouse Project is a 1,000MW solar and battery storage project, located on approximately 6,155 acres of land wholly managed by the Bureau of Land Management (BLM) in La Paz County 27 miles east of Quartzsite, Arizona. The entire project site is located in a solar variance area as identified in BLM's Solar PEIS and Record of Decision (ROD). The project has the capacity to provide electricity to an equivalent of approximately 1.2 million homes. The company commenced the greenfield development of the Bouse Project in early 2021.
The Parker Project is a 250MW solar and storage project, located on approximately 1,530 acres of land wholly managed by the BLM in La Paz County, Arizona. The project is near existing transmission infrastructure and easily accessed through existing state road network. It has the capacity to provide electricity to an equivalent of approximately 300,000 homes. The company commenced the greenfield development of the Parker Project in mid-2021.
Revolve was formed in 2012 to capitalize on the growing global demand for renewable power. Revolve develops utility-scale wind, solar and battery storage projects in the US and Mexico with a portfolio of approximately 2450MW under development.
The company has a second division, Revolve Renewable Business Solutions which installs and operates sub-20MW 'behind the meter' distributed generation assets. Revolve Renewable Business Solutions currently has an operating portfolio of 2.85MW with an additional 6.2MW under construction phase.
Revolve has an accomplished management team with a demonstrated track record of taking projects from 'greenfield' through to 'ready to build' status and successfully concluding project sales to large operators of utility-scale renewable energy projects. To-date, Revolve has developed and sold over 300MW of projects.
Going forward, Revolve is targeting 5,000MW of utility-scale projects under development in the US and Mexico, and in parallel is rapidly growing its portfolio of revenue-generating DG (distributed generation) assets.
Contact the author at jon.hopkins@proactiveinvestors.com