The RE Royalties Model

An opinion piece by Fabian Lorenz (Apaton Finance GmbH).

RE Royalties has established a business model that is perhaps unique in the industry. The focus is on financing projects in the field of renewable energy and storage systems. To this end, the company has transferred the royalty model known from mining to its industry. Project developers receive capital from RE Royalties without giving up shares. The loans are often repaid within a few years, and the capital is available to RE Royalties for new investments. The royalty payments, on the other hand, run for 20 years or longer. It is important to note that RE Royalties exclusively finances commercially proven technologies such as solar, wind, and hydropower.

The RE Royalties share price has clearly been boosted by current investments in projects in the US. There, the company is working with project developer Solaris Energy. RE Royalties is investing a total of USD 4.8 million in an initial portfolio of 15 projects in various US states.The first projects are already nearing commissioning. A second portfolio is also to be financed. This should lead to further positive news flow.

Read the full article here.