Revolve Renewable Power Corp. has sold its 250 MW Parker Solar and Storage Project and the 1,000 MW Bouse Solar and Storage Project to ENGIE IR Holdings LLC, a wholly owned subsidiary ENGIE S.A.
The total consideration payable by ENGIE is within the range of guidance previously provided by the company for the sale of utility-scale development assets. It includes an upfront payment of $2 million (inclusive of the reimbursement of development costs), which has been paid on completion of the transaction.
The remaining consideration is linked to each of the projects’ successfully completing the following development milestones: completion of further interconnection studies; issuance by ENGIE of a Notice to Proceed (NTP) construction works to the applicable EPC contractor; and on the commissioning date (COD), with such date being the date that a project has been synchronized to the grid and is capable of delivering all of its installed capacity to the grid.
The first of these milestones is expected to be achieved in 2023 when further interconnection studies are issued.
On completion of the transaction, ENGIE acquired 100% of the shares in Revolve Renewable AZ LLC and Revolve Parker Solar LLC on a cash and debt-free basis.
ENGIE will be responsible for the further development of the projects including all future development costs and other financial liabilities.
As part of the transaction the parties have entered into a put option agreement allowing ENGIE to sell the projects back to the company for a limited period following receipt of the results of the next interconnection studies due for each project. Should ENGIE exercise this put option, the company will repurchase the respective project, while also refunding ENGIE and development expenses incurred or reimbursed.
Agentis Capital acted as exclusive financial adviser to the company on the transaction, while Baker Botts acted as the company’s U.S. legal counsel and Miller Thomson LLP acted as the company’s Canadian legal counsel.
The Bouse Project is a 1,000 MW solar and battery storage project, located on approximately 6,155 acres of land wholly managed by the BLM in La Paz County 27 miles east of Quartzsite, Ariz. The entire project site is located in a solar variance area as identified in BLM’s Solar PEIS and Record of Decision (ROD) (BLM/DOE 2012, BLM 2012a). The Bouse Project has the capacity to provide electricity to an equivalent of approximately 1.2 million homes. The company commenced the greenfield development of the Bouse Project in early 2021.
The Parker Project is a 250 MW solar and storage project, located on approximately 1,530 acres of land wholly managed by the Bureau of Land Management (BLM) in La Paz County, Ariz. The project is near existing transmission infrastructure and easily accessed through existing state road network. It has the capacity to provide electricity to an equivalent of approximately 300,000 homes. The company commenced the greenfield development of the Parker Project in mid-2021.