VANCOUVER, BC / ACCESSWIRE / July 12, 2023 / Revolve Renewable Power Corp. (TSXV:REVV)(OTCQB:REVVF) ("Revolve" or the "Company"), an owner, operator and developer of renewable energy projects, is pleased to announce the completion of the interconnection milestone related to the 250MW Parker Solar and Storage Project (the "Parker Project"), which was sold in January 2023 to ENGIE IR Holdings LLC a wholly owned subsidiary ENGIE S.A. ("ENGIE"), a global leader in the energy sector.
The terms of the sale, which also included the sale of the 1,000MW Bouse Solar & Storage Project (the "Bouse Project") are set out in the news release date January 11, 2023 (https://revolve-renewablepower.com/revolve-announces-sale-of-1250mw-of-utility-scale-solar-and-storage-projects/) and are also summarised below.
The Transaction
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, which for reference is outlined in page 10 the Company's corporate presentation (https://revolve-renewablepower.com/wp-content/uploads/2023/06/Revolve-Corporate-Presentation-June-8-2023.pdf).
The Company received an upfront payment of US$2,000,000 (inclusive of the reimbursement of development costs) on completion of the transaction in January 2023. US$800,000 of this payment was recognised as revenue in the Company's Q3 FY2023 financial accounts with the remaining US$1,200,000 accounted for as deferred revenue.
Milestone Payments
The remaining consideration is linked to each of the Parker Project and Bouse Project successfully completing the following development milestones:
- completion of further interconnection studies;
- Issuance by ENGIE of a Notice To Proceed (an "NTP") construction works to the applicable EPC contractor.
- on the Commissioning Date (the "COD"), 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 Company previously guided that it expected the first of these milestones to be achieved in 2023 when further interconnection studies are issued. We are now pleased to confirm that the completion of further interconnection studies milestone has been met for the Parker Project.
Put Option
As part of the transaction the parties entered into a put option agreement (the "Put Option") allowing ENGIE to sell the Parker Project and Bouse Project back to the Company for a limited period following receipt of the results of the next interconnection studies due for each project.
This Put Option exercise period commenced when the interconnection study was received for the Parker Project and has now since expired for this project, with ENGIE choosing not to exercise the option.
The next milestone payment related to the Parker Project totalling US$850,000 has now become due and is expected to be paid within the next 30 days. There were no additional development costs incurred by the Company in relation to this milestone.
As a result of this the Company expects to record revenue from the transaction in Q1 FY2024 (July 2023 to September 2023) totalling of US$1,090,000 consisting of the milestone payment above and US$240,000 of previously deferred revenue.
Steve Dalton, CEO of Revolve commented: "We are delighted to reach a key milestone for the Parker Project and the overall transaction with ENGIE. The milestone payment provides us with further capital to continue funding the business and our expanding project development pipeline. While the expiration of the put option removes the risk of the Parker Project being sold back to us and the uncertainty that this generated for investors.
We can now look forward to continuing to supporting the team at ENGIE in developing the Parker Project towards reaching its next milestone as well as the release of the next interconnection study for the Bouse Project in the first half of next year. "
The Parker Project
The Parker Project is a 250MW solar and storage project, located on approximately 1,530 acres of land wholly managed by the Bureau of Land Management (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.
About Revolve
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 2,838MW under development. The Company has a second division, Revolve Renewable Business Solutions, which installs and operates sub 20MW "behind the meter" distributed generation (or "DG") assets. Revolve Renewable Business Solutions currently has an operating portfolio of 6MW with an additional 3MW under construction.
Revolve has an accomplished management team with a demonstrated track record of taking projects from "greenfield" through to "ready to build" (or "RTB") status and successfully concluding project sales to large operators of utility-scale renewable energy projects. To-date, Revolve has developed and sold over 1,550MW 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 assets.
For further information contact:
Steve Dalton, CEO
[email protected]
or
Sunita Prasad
VP, Corporate Development & Investor Relations
Phone: +1 778-885-5550
[email protected]
Forward Looking Information
Although Revolve believes, considering the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because Revolve can give no assurance that they will prove to be correct. When used in this press release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release include information relating to the business plans of Revolve and Revolve's management's expectation on the growth and performance of its business in the United States and Mexico, including the planned MW capacity of its projects; its expansion into the distributed generation market; potential opportunities in the distributed generation market; the completion and timing of the development of its planned portfolio of distributed generation projects; the completion of the Transaction, including final approval of the transaction by the TSXV; potential revenues and cashflows generated from its DG division; and the Company's plans to develop, construct and finance rooftop solar, battery storage and energy efficiency projects of up to 5MW and enter into long term power purchase agreements for the sale of electricity from the projects with the underlying customers. Such statements and information reflect the current view of Revolve and/or Revolve, respectively.
The forward-looking statements contained in this news release are based on current expectations, estimates, projections and assumptions, having regard to the Company's experience and its perception of historical trends, and includes, but is not limited to, expectations, estimates, projections and assumptions relating to the extent of regulations pertaining to the Company's projects and Revolve's ability to continue as going concern. Risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information, including but not limited to: the effects of weather, catastrophes and public health crises, including COVID-19; labour availability; disruptions to the Company's supply chains; changes to regulatory environment, including interpretation of production tax credits; armed hostilities and geopolitical conflicts; failure to obtain necessary regulatory approvals in a timely fashion, or at all; risks related to the development and potential development of the Company's projects; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; the availability of tax incentives in connection with the development of renewable energy projects and the sale of electrical energy; as well as those factors discussed in the sections relating to risk factors discussed in the Company's continuous disclosure filings on SEDAR. Such statements and information reflect the current view of Revolve. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
The forward-looking information contained in this press release represents the expectations of Revolve as of the date of this press release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Revolve does not undertake to update this information at any particular time except as required in accordance with applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Revolve Renewable Power Corp.