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 8 projects that have a royalty to ARR as follows:
In Q3 2021, GBR closed a US$52.5 million royalty investment with Northleaf Capital Partners on three operating wind and solar projects, all in Texas. The portfolio includes the 151 MW Old Settler wind project, the 50 MW Cotton Plains wind project and the 15 MW Phantom Solar project, with the Old Settler output being sold into the ERCOT market, and the others being sold under fixed-price contracts with the US Department of Defense through 2045.
In Q3 2021, GBR closed a US$35M royalty investment with Longroad Energy on the 250MWac operating solar project in Texas, Prospero 2.GBR expects to earn a return of 8-12% on its investment, with royalty revenue starting at a lower level from 2022 – 2027 and then increasing materially. .
In Q2 2022, GBR closed a US$32.5M investment into anew global renewables development platform, Bluestar Energy Capital LLC founded by Declan Flanagan, former CEO of Orsted Onshore and Lincoln Clean Energy. .
In Q3 2022, GBR closed a US$40 million investment into Hodson Energy’s 1.8 MWac solar and battery storage portfolio which is concentrated in the mid-Atlantic region. .