VANCOUVER, BC / ACCESSWIRE / June 10, 2024 / Revolve Renewable Power Corp. (TSXV:REVV)(OTCQB:REVVF) ("Revolve" or the "Company"), a North American owner, operator and developer of renewable energy projects, is pleased to announce the completion of the interconnection milestone related to the 1,000MW Bouse Solar and Storage Project (the "Bouse Project"), which was sold in January 2023 to ENGIE IR Holdings LLC, a wholly-owned subsidiary of ENGIE S.A. ("ENGIE"), a global leader in the energy sector.
The terms of the sale, which also included the sale of the 250MW Parker Solar & Storage Project (the "Parker Project"), are set out in the news release dated 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 17 the Company's corporate presentation ( https://revolve-renewablepower.com/wp-content/uploads/2024/06/Revolve-_-Corporate-Presentation-June-7-2024.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. Of this sum, US$800,000 was recognised as revenue in the Company's Q3 FY2023 financial accounts with the remaining US$1,200,000 accounted for as deferred revenue. The balance of this deferred revenue as at March 31, 2024 was US$960,000.
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 Engineering and Procurement Contractor ("EPC") ;
- On the Commercial Operations 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 completion of the interconnection studies milestones for the Bouse Project to be achieved prior to the end of H1 2024 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 Bouse Project.
Put Option
As part of the transaction the parties entered into a put option agreement (the "Put Option") allowing ENGIE to sell the Bouse Project back to the Company for a limited period following receipt of the results of the next interconnection studies due for each project.
ENGIE has chosen not to exercise the Put Option and it has therefore expired for the Bouse Project.
The next milestone payment related to the Bouse Project totalling US$3,400,000 has now been paid to the Company. There were no additional development costs incurred by the Company in relation to this milestone. The deferred revenue of US$960,000 is now expected to be recognised as revenue in the Company's Q4 FY2024 financial statements.
The interconnection milestone for the Parker Project was completed in July 2023, see news release for further details (https://revolve-renewablepower.com/milestone-reached-on-250mw-parker-solar-storage-project/).
Steve Dalton, CEO of Revolve, commented: "We are delighted to reach a key milestone for the Bouse Project and the overall transaction with ENGIE. The Bouse Project is one of the largest solar and battery storage projects being developed for the Californian market and we look forward to further progress being made towards notice to proceed in the coming years."
The Bouse Project
The Bouse Project is a 1,000MW solar and battery storage project, located on approximately 6,155 acres of land wholly managed by the 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) (BLM/DOE 2012, BLM 2012a). The Bouse 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.
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, Canada and Mexico. 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's portfolio includes the following:
- Operating Assets: 11MW (net) of operating assets under long term power purchase agreements across Canada and Mexico covering wind, solar, battery storage and hydro generation;
- Under Construction: a 3MW CHP project and a 450kWp rooftop solar project that are both under construction and expected to be operational later this year; and
- Development: a diverse portfolio of utility scale development projects across the US, Canada and Mexico with a combined capacity of over 3,000MWs as well as a 140MW+ distributed generation portfolio that is under development.
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 1,550MW of projects.
Going forward, Revolve is targeting 5,000MW of utility-scale projects under development in the US, Canada 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, Canada 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.