Altius Renewable Royalties (“ARR”) was formed to satisfy a need for flexible capital in renewable energy. ARR utilizes a financing structure called a royalty, common in other industries but innovative in the renewable energy sector. With this novel approach to financing renewable energy projects, ARR was able to quickly scale its investments while providing much needed capital to those building wind and solar energy projects. Traditional means of financing these projects, including debt, tax equity and common equity, were not keeping up with the unique requirements of a rapidly expanding industry. Our mission was to align ourselves with leaders in the development and construction of renewable energy through this unique financing structure. Through ARR’s initial investments, the Company has royalty interests in the project portfolios of two leading U.S. wind and solar development companies.
In finance, royalty agreements typically outline payments that are paid as a percentage of revenues for the life of a project.