19:10:31 EDT Thu 31 Oct 2024
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or Name
USA
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Revolve Renewable Power Corp
Symbol REVV
Shares Issued 54,905,565
Close 2023-05-23 C$ 0.48
Market Cap C$ 26,354,671
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Revolve Renewable starts up BESS project in Mexico

2023-05-24 09:42 ET - News Release

Mr. Steve Dalton reports

CANCUN BATTERY STORAGE PROJECT BECOMES OPERATIONAL

Revolve Renewable Power Corp. has completed final commissioning on its 3.2-megawatt-per-hour battery energy storage system (BESS) project located in Cancun, Mexico, and is now generating recurring revenues.

This Project is Revolve's 7th operating asset in its Distributed Generation division, operating under the name Revolve Renewable Business Solutions, and is its first battery storage system in its portfolio (See News Release dated September 15, 2022).

Project Overview

  • The 3.2MWh battery storage system is installed at the site of a major hotel chain in Cancun, Mexico;
  • Revolve owns the Project 100% and is responsible for the financing, installation and operation of the BESS system;
  • A 10-year Energy Services Agreement (or "ESA") was signed between the Company and the hotel operator for the provision of peak shaving and other energy related services;
  • Under the ESA agreement Revolve will receive an annual fixed payment in addition to sharing the energy savings delivered by the Project over the 10-year contract period;
  • An Engineering Procurement Contract (or "EPC") was signed with Quartux Mexico S.A. de C.V. (or "Quartux"), a highly experienced installer and operator of battery storage systems in Mexico, to deliver a turnkey solution for the installation and commissioning of the BESS system;
  • In addition to the EPC a 10-year Maintenance Agreement was also signed with Quartux for the day-to-day operation and optimization of the system including all routine maintenance;
  • The Project was installed and commissioned at a cost of approximately US$1.8m including all related financing and transaction costs.

Project Update

  • Final testing and commissioning of the Project was completed over the last two weeks and the Project is now fully operational;
  • The Project is generating energy cost savings under the ESA Agreement and will contribute to the Company's revenue and cashflow beginning in the quarter and year ending June 30, 2023;
  • The Project was delivered within budget and within a few weeks of the original target commissioning date;

Project Financing

Revolve financed this Project through a combination of cash on hand and a secured loan (the "Secured Loan") of C$1.86m from RE Royalties Ltd. (see News release dated October 16, 2022.) https://money.tmx.com/en/quote/REVV/news/7243047530528001/Revolve_Completes_Project_Financing_with_RE_Royalties

Eric Hickert (Head of Distributed Generation) commented, "We are delighted to have achieved the successful commissioning of the Cancun BESS project. The commissioning marks an important milestone for the Company being the first operational battery storage project in our DG portfolio, while also representing the first project delivered by the Revolve team since the acquisition of Centrica Business Solutions in August last year. We are seeing growing momentum in our DG business unit and remain confident of signing further DG projects in the short term."

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 approx. 2,450MW 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 6MW with an additional 3MW under construction.

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 1,550MW 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 assets.

We seek Safe Harbor.

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