ARR first invested in leading Texas based wind developer Tri Global Energy (“TGE”) in February 2019. The US$55 million investment was structured in a way that as TGE sold projects from their large portfolio of development projects, a gross-revenue royalty would be payable to ARR on wind and solar projects as they are developed and sold. Additional royalties will continue to be created until a certain return threshold is met at which time no additional royalties will be created. Wind and solar projects with royalties payable to ARR will continue to generate cashflow for the life of these projects.
To date, TGE has developed and sold projects that have a royalty to ARR as follows:
Structured in a similar manner to the TGE investment, ARR invested US$35 million in March 2020 into Apex Clean Energy (“Apex”). The funds help Apex expand one of the largest development portfolios in the United States. Apex is one of the largest renewable energy developers in the United States and has commercialized over 6.5 GW of clean energy projects since its inception in 2009. Its current portfolio includes approximately 26 GW of development projects, a portion of which (approx 5 GW) are excluded from the agreement with ARR due to their advanced stage and sales already in process. Apex typically sells these projects to utilities, infrastructure funds and other institutional investors prior to construction.