RE Royalties invests $6.3 million in Alberta solar project

In Alberta, Canada, RE Royalties Ltd. has entered into a secured loan agreement valued at $6.3 million with Alpin Solar SA, a subsidiary of the German-Romanian renewable energy company Alpin Sun. This investment is intended to support the development of a 200 MWAC solar project in Sturgeon County, projected to generate approximately 386,000 MWh of renewable electricity annually, which is enough to power around 57,000 homes. The project represents a significant environmental commitment, as it is expected to reduce greenhouse gas emissions by approximately 227,700 tonnes of CO2 equivalent per year. The loan agreement showcases RE Royalties' approach to renewable energy financing, where they provide non-dilutive solutions that allow companies like Alpin to pursue sustainable energy projects without compromising their equity. Bernard Tan, CEO of RE Royalties, expressed enthusiasm about collaborating with Alpin Sun to advance this eco-friendly initiative, highlighting the importance of such projects in combating climate change through emission reductions. Furthermore, RE Royalties will benefit from a gross revenue royalty of $0.25 per MWh produced from the solar project, ensuring a continuous revenue stream as the project becomes operational. This financial arrangement not only illustrates the viability of royalty-based financing for renewable energy but also reflects the growing trend in the renewable sector to seek alternate funding solutions that support large-scale development without the burden of diluting ownership stakes. As the world grapples with the need for cleaner energy sources and the implications of greenhouse gas emissions, partnerships like the one between RE Royalties and Alpin Sun signal a positive shift toward sustainable development in the energy sector. The ability of such projects to harness renewable resources aligns with broader climate objectives and reinforces the commitment of organizations to build a greener future.