RE Royalties: Energy for the Future

An opinion piece by Mario Hose (Apaton Finance GmbH).

RE Royalties relies on a force that is always available: renewable energy (wind, water, and sun). The best thing about it is the way they do it. They do not grant traditional loans, nor do they constantly dilute their partners' equity. They use a royalty model that was previously more common in the commodities industry. They finance projects and receive a share of the revenue in return. This is ingenious because it gives wind and solar park operators control and secures a steady cash flow for RE Royalties.

The team led by Bernard Tan and Peter Leighton has done some truly pioneering work here. Bernard Tan was inspired by his grandfather's advice to take the next bold step. He wanted to build a better future for his children. This desire gave rise to a company that now holds over 100 royalties in the solar, wind, water, and battery storage sectors.

A look at RE Royalties' projects reveals that they are investing where the future is being created. A current example is their collaboration with Solaris Energy in the US. RE Royalties has just invested another tranche of USD 800,000. In total, this represents a portfolio of USD 9 million for solar projects in states such as California, Maine, and Colorado.

Read the full article here.