REVOLVE RENEWABLE POWER CORP. VANCOUVER, BC, Nov. 30, 2022 /PRNewswire/ - Revolve Renewable Power Corp. (TSXV: REVV) ("Revolve" or the "Company") is pleased to provide an update to shareholders and announce the filing of its financial and operating results for the three months ended September 30, 2022.
Steve Dalton, CEO of Revolve commented, "We are delighted to report on the considerable progress the Company has made over the course of the last eight (8) months since completion of our public listing on the TSXV."
"We have continued to develop and expand our Utility Scale project portfolio, which currently stands at 3.6GW across twelve (12) wind, solar & battery storage projects in the US and Mexico. Key milestones are being met on the various projects as we move closer towards reaching a ready-to-build (or "RTB") status in 2024 on our most advanced projects. We are expecting a very robust 2023 as we continue to support the development of our renewable energy portfolio to reach various RTB targets."
"The most significant development for the Company over the period has been the transition from being solely a project developer to becoming an independent power producer, generating electricity with recurring long-term revenue and cashflow from a growing renewable energy portfolio of commercial & industrial customers in Mexico."
"This transition started with the announcement in May 2022 of a new division, Revolve Renewable Business Solutions, to focus on the fast-growing distributed generation (or "DG") market in Mexico and the US. To accelerate our entry into this market we successfully completed the acquisition of Centrica Business Solutions Mexico in August 2022. This provided the Company with a 2.85MW portfolio of operating rooftop solar and combined heat and power (or "CHP") projects along with a further 3MW CHP project that is under construction. The acquisition has provided a platform to quickly expand our pipeline of new DG project opportunities, which led to the signing of our first battery storage (or "BESS") project in September 2022. (https://money.tmx.com/en/quote/REVV/news/5377287865811312/Revolve_Grows_its_Distributed_Generation_Portfolio_by_an_Additional_32MWh) The 3.2MWh BESS project in Cancun, Mexico has increased our overall DG portfolio to 10MW of operating and under construction assets, while our project development pipeline is growing rapidly and now stands at over 60MW. Our target is to convert this development pipeline into signed projects during 2023, which will continue to grow both the revenue and EBITDA generated by this division."
"Looking at the broader outlook for the renewable energy sector in North America, there were several positive announcements from the US and Mexican governments. We expect these announcements to act as a catalyst for accelerated growth in the sector in the near and longer term. The passing of the Inflation Reduction Act in the US last August provides both long term certainty on tax incentives to support the development of renewable energy projects as well as at least U$369B of new investment, which will be directed towards energy security and climate change with the goal to cut US carbon emissions by approximately 40% by 2030. We expect this to drive interest and demand for renewable energy development projects at all stages of development particularly as projects move towards RTB."
"Recently we have also seen a significant positive policy shift by the Mexican government, that follows a number of years of uncertainty for the renewable energy sector in the country. As part of the COP 27 proceedings, Mexico has pledged to reach 40GW of deployed wind and solar generation capacity by 2030 with the strategy of reducing its greenhouse gas emissions by 35%. In order to meet this 40GW target it will require the addition of 10GW of new renewable energy capacity over the next 8 years or 1.25GW per year. With Revolve's successful track record in Mexico and an advanced pipeline of competitive wind projects totaling 1.6GW, we anticipate more clarity from the government on private sector involvement in delivering this ambitious target."
Key Highlights:
Utility Scale Development Portfolio:
- 250MW Parker Solar and Storage Project - Successful Completion of BLM Variance Process – The Bureau of Land Management (BLM) approved the project for further processing after the completion of the BLM variance process. The approval process consists of completion of an environmental review in accordance with National Environmental Policy Act (NEPA). The Parker Project is a 250MW utility scale solar and storage project located in Arizona and enjoys great infrastructure in its vicinity. There is excellent access through existing state road network and proximity to transmission infrastructure with interconnection within one mile. The Parker Project is moving towards mid-stage of development with target ready to build timeline of 2024. Once ready this project has the capacity to provide electricity to an equivalent of 300,000 homes. (https://money.tmx.com/en/quote/REVV/news/5885556774207448/Revolve_Successfully_
Completes_BLM_Variance_Process_for_the_250MW_Parker_Solar_and_Storage_Project)
- Vernal BESS Project - 80MWh/20MW project located in Utah on land administered by State Land Trust. This project is the first stand-alone BESS project Revolve has in the US. The Vernal Project has excellent access through existing and local road network and is close to existing transmission infrastructure. Plans for development activity will be ramped up for 2023 with a focus on completion of phase two study of the interconnection process. Environmental permitting work has also commenced. This includes: a plan of development for the project, cultural resource survey and a conditional use and easement permit for the construction of transmission line connecting to the nearest substation. For detailed information of the project please visit: (https://money.tmx.com/en/quote/REVV/news/5292933676750826/Revolve_Provides_Development_
Update_on_its_80MWh20MW_Vernal_Battery_Storage_Project_in_the_US)
- Primus Wind Project - a 49.6MW wind project located in Colorado, one of the main wind energy states in the US. This project is easily accessed by existing and local road network and is near the local transmission network. Revolve has signed 25-year lease agreements with the landowners to allow for the construction and operation of the Primus Project. The Company is planning to continue the development of this project in 2023. The scope of work planned as part of the development is: completing the permitting schedule for the Project, collection of 12 months of wind data by installing a meteorological mast (met mast) which will outline the electricity expected to be generated by the project and basic engineering work for preliminary design, layout, and location of the wind turbines. A ready to build date for this project is targeted during 2024. The project will have the capacity to provide electricity to an equivalent of 60,000 homes. For detailed information on this project please visit: (https://money.tmx.com/en/quote/REVV/news/5169342962530865/Revolve_provides_development_
update_on_496MW_Primus_Wind_project)
Distribution Generation Projects:
- Acquired 100% of Centrica Business Solutions (Mexico): this acquisition provided Revolve with seven (7) DG projects out of which six (6) are in operation with an energy capacity of 2.85MW and one under construction awaiting final permitting and expected to be operational in H1 2023. The project under construction will have an energy capacity of 3MW. These projects are a combination of roof top solar, battery storage, Combined Heat and Power (CHP) and other energy efficiency solutions. The Centrica acquisition provides Revolve with an increase in almost 6MW of energy in its portfolio, a forecasted recurring long-term revenue of U$1.4m and EBITDA of U$700,000 once fully operational. Revolve paid U$1.4m for this acquisition and it was financed through RE Royalties using a secured loan and a royalty agreement.
- Additional 3.2MWh BESS project - the Company signed a ten-year Energy Services Agreement (ESA) for its first Battery Storage System (BESS) providing Revolve with an additional 3.2MWh in energy capacity increasing the Company's DG capacity both operational and under construction by 50% to approximately 9MWh. Revolve owns this project and is responsible for financing, installation, and operation. The project will be installed at the site of a hotel chain in Cancun Mexico. Installation work is underway with a target operational date of Q1 2023. This project was also financed through RE Royalties using a secured loan and a royalty agreement.
- Expansion of DG Pipeline – the Company has continued to grow its pipeline of DG project opportunities since establishing its new division, Revolve Renewable Business Solutions earlier this year. The current pipeline is in excess of 60MW and covers a range of different rooftop solar, battery storage and CHP projects in Mexico. The company has also commenced the early assessment of DG opportunities in the US and Canada and expects further opportunities to arise over the next 12 months.
Full Financial and Management's Discussion and Analysis for Q1 2022 are posted on the Company's website, https://revolve-renewablepower.com/financials/ as well as on SEDAR (www.sedar.com).
For additional information on our projects visit:
https://revolve-renewablepower.com/company-news/
About Revolve
Revolve was formed in 2012 to capitalize on the growing global demand for renewable power. Revolve develops utility-scale wind, solar and battery storage projects in the US and Mexico with a portfolio of c.3,600MW under development. The Company has a second division, Revolve Renewable Business Solutions which installs and operates sub 20MW "behind the meter" distributed generation (or "DG") assets. Revolve Renewable Business Solutions currently has an operating portfolio of 2.85MW with an additional 6.2MW under construction phase.
Revolve has an accomplished management team with a demonstrated track record of taking projects from "greenfield" through to "ready to build" (or "RTB") status and successfully concluding project sales to large operators of utility-scale renewable energy projects. To-date, Revolve has developed and sold over 300MW of projects.
Going forward, Revolve is targeting 5,000MW of utility-scale projects under development in the US and Mexico, and in parallel is rapidly growing its portfolio of revenue-generating DG (distributed generation) assets.
Forward Looking Information
Although Revolve believes, considering the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because Revolve can give no assurance that they will prove to be correct. When used in this press release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release include information relating to the business plans of Revolve and Revolve's management's expectation on the growth and performance of its business in the United States and Mexico, including the planned MW capacity of its projects; its expansion into the distributed generation market; potential opportunities in the distributed generation market; the completion and timing of the development of its planned portfolio of distributed generation projects; the completion of the Transaction, including final approval of the transaction by the TSXV; potential revenues and cashflows generated from its DG division; and the Company's plans to develop, construct and finance rooftop solar, battery storage and energy efficiency projects of up to 5MW and enter into long term power purchase agreements for the sale of electricity from the projects with the underlying customers. Such statements and information reflect the current view of Revolve and/or Revolve, respectively.
The forward-looking statements contained in this news release are based on current expectations, estimates, projections and assumptions, having regard to the Company's experience and its perception of historical trends, and includes, but is not limited to, expectations, estimates, projections and assumptions relating to the extent of regulations pertaining to the Company's projects and Revolve's ability to continue as going concern. Risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information, including but not limited to: the effects of weather, catastrophes and public health crises, including COVID-19; labour availability; disruptions to the Company's supply chains; changes to regulatory environment, including interpretation of production tax credits; armed hostilities and geopolitical conflicts; failure to obtain necessary regulatory approvals in a timely fashion, or at all; risks related to the development and potential development of the Company's projects; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; the availability of tax incentives in connection with the development of renewable energy projects and the sale of electrical energy; as well as those factors discussed in the sections relating to risk factors discussed in the Company's continuous disclosure filings on SEDAR. Such statements and information reflect the current view of Revolve. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
The forward-looking information contained in this press release represents the expectations of Revolve as of the date of this press release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Revolve does not undertake to update this information at any particular time except as required in accordance with applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE Revolve Renewable Power Corp
