Revolve Renewable Power Corp. (“Revolve” or the “Company”), a North American owner, operator and developer of renewable energy projects, is pleased to announce the proposed acquisition of the development rights to a 30MWp solar project in Alberta, Canada (the “Project”).
Revolve Meadows Solar GP Inc. (the “Purchaser”), a wholly-owned Alberta subsidiary of Revolve, and the Project developer have entered into an asset transfer agreement dated September 14, 2024 (the “ATA”). Under the ATA, the assets related to the Project will transfer to the Purchaser on completion of the transaction, which is expected to occur on or before November 15, 2024.
Under the terms of the ATA, the Company will pay an upfront consideration of C$100,000, which includes the reimbursement of certain development costs incurred in the development of the Project to date. The Company has also agreed to pay further consideration and reimbursement of historical development costs of up to C$790,000, subject to the final installed capacity of the Project and linked to the successful completion of various milestones including the commencement of construction and the commercial operation date of the Project.
The transaction will be financed through existing cash resources held by the Company.
Project Overview
Project Capacity – 30MWp solar project expected to be developed in two phases of 20MWp and 10MWp.
Project Location – the Project is located south of the city of Edmonton in an area of non-prime agricultural land. A land lease agreement has been signed with one landowner for the entire Project area.
Development Status – the Project has been under development for the last two years and is considered to be at mid stage of development with site control completed along with various other permitting and interconnection works.
Development Program – the Company is targeting having the first phase of the Project ready to build in early 2026, with commissioning targeted for mid 2026.
Financial Forecast – once fully commissioned, the first phase of the Project is expected to generate annualized revenue in the range of C$3.0m to C$5.0m and EBITDA of between C$1.8m to C$3.0m. The Company intends on updating these forecasts closer to construction commencing and as the commercial arrangements for the sale of electricity from the Project are finalized. Revolve intends to build, own and operate the Project, which, once operational, will substantially enhance the revenue and cashflow profile of the Company.
Steve Dalton, CEO of Revolve, commented: “We are delighted to continue to expand our presence in the Canadian market through the proposed acquisition. The transaction is consistent with our M&A strategy of targeting projects under 30MW in the US and Canada, where we continue to see excellent opportunities to acquire, develop, build and operate quality assets with attractive returns. In addition to the Vernal BESS and Primus Wind projects, Revolve is now expecting to have 100MW of utility scale assets ready to build over the next 18 months. The project will also add to our Canadian development portfolio and our operational, Alberta-based 6MW Box Springs Wind Project and BC-based interest in two “run of river” power projects.”
