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  • RE Royalties

How Does the Royalty Financing Structure Work?

RE Royalties provides renewable energy operators and developers with the financial flexibility to grow without resorting to dilution, asset sales or restrictive debt covenants.


Let’s look at an example of one of these arrangements:


Aeolis Wind Power Corporation was an original developer of the 102 MW Bear Mountain Wind Project located in north-eastern BC. Aeolis sold its equity in the project to AltaGas, who ultimately built the project. As part of the sale, Aeolis received a gross revenue royalty on the project.


Aeolis had other clean energy development opportunities and needed the capital to pursue them. Royalty payments from the Bear Mountain Wind Project were not enough to provide this funding.


RE Royalties provided Aeolis with an upfront payment of $1.24 million in exchange for a portion of their existing royalty for the remainder of the agreement. By monetizing a portion of Aeolis’ royalty, it allowed them to pursue further development opportunities while retaining a larger ownership position.

 

Read more about RE Royalties in this article by Boomer and Echo here.


Learn more about the Bear Mountain partnership here:

RE Royalties' royalty financing solutions are designed to provide renewable energy operators and developers with the financial flexibility to grow without resorting to dilution, asset sales or restrictive debt covenants.


Learn more about our project financing options here.

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