VANCOUVER, BC, Jan. 18,
2023 /CNW/ - Revolve Renewable Power Corp.
(TSXV: REVV) ("Revolve" or the "Company") is
pleased to provide an update on the progress of its 3.2MWh
("megawatt per hour") Battery Energy Storage System (or "BESS")(the
"Project") project located in Cancun,
Mexico. This is the first BESS project that the Company
signed on August 29, 2022, under its
new division, Revolve Renewable Business Solutions (see Revolve
News Release dated September 15,
2022).
Project Overview
- The 3.2MWh battery storage system is being installed at the
site of a major hotel chain in Cancun,
Mexico.
- Revolve is the 100% the owner of the Project and has
responsibility for the financing, installation and operation of the
BESS system.
- A 10-year Energy Services Agreement (or "ESA") has been signed
between the Company and the hotel operator for the provision of
peak shaving and other energy related services.
- Under the ESA, 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") has been 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 has
also been signed with Quartux for the day-to-day operation and
optimization of the system including all routine maintenance.
- The Project is expected to cost approximately US$1.8m to install and commission including all
related financing and transaction costs.
Project Update
Quartux have provided the Company with an update on the
installation works for the Project as follows:
- Site enabling works have been completed at the hotel including
the installation of specialist metering equipment to facilitate the
operation of the Project once fully commissioned;
- Manufacture of the BESS system has been substantially completed
and shipment of the first BESS units has commenced. The initial
units are expected to arrive on site in mid-February 2023 with the remaining scheduled
for delivery in March 2023;
- Installation of the BESS system will commence before the end of
Feb and is expected to be completed by the end of March 2023; and
- The Project is forecast to be fully operational and generating
revenue for Revolve shortly thereafter under the 10 year ESA.
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. (or "RER") (see
Revolve News release dated October 15,
2022). Drawdown of the Secured Loan was based on
certain project related milestones. Given the progress on the
Project as outlined above the Company has now completed the second
drawdown under this facility of approximately C$880,000.
Eric Hickert, Revolve's Head of
Distributed Generation, commented, "We are delighted with the
progress of the Project to date and look forward to completion of
the installation works over the coming weeks."
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 2.85MW with an additional 6.2MW under construction phase.
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 300MW
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 (distributed generation)
assets.
Forward Looking
Information
Although Revolve believes, considering the experience of its
officers and directors, current conditions and expected future
developments and other factors that have been considered
appropriate that the expectations reflected in this forward-looking
information are reasonable, undue reliance should not be placed on
them because Revolve can give no assurance that they will prove to
be correct. When used in this press release, the words "estimate",
"project", "belief", "anticipate", "intend", "expect", "plan",
"predict", "may" or "should" and the negative of these words or
such variations thereon or comparable terminology are intended to
identify forward-looking statements and information. The
forward-looking statements and information in this press release
include information relating to the business plans of Revolve and
Revolve's management's expectation on the growth and performance of
its business in the United States
and Mexico, including the planned
MW capacity of its projects; its expansion into the distributed
generation market; potential opportunities in the distributed
generation market; the completion and timing of
the development of its planned portfolio of distributed
generation projects; the completion of the Transaction, including
final approval of the transaction by the TSXV; potential revenues
and cashflows generated from its DG division; and the Company's
plans to develop, construct and finance rooftop solar, battery
storage and energy efficiency projects of up to 5MW and enter
into long term power purchase agreements for the sale of
electricity from the projects with the underlying customers. Such
statements and information reflect the current view of Revolve
and/or Revolve, respectively.
The forward-looking statements contained in this news release
are based on current expectations, estimates, projections and
assumptions, having regard to the Company's experience and its
perception of historical trends, and includes, but is not limited
to, expectations, estimates, projections and assumptions relating
to the extent of regulations pertaining to the Company's projects
and Revolve's ability to continue as going concern. Risks and
uncertainties that may cause actual results to differ materially
from those contemplated in those forward-looking statements and
information, including but not limited to: the effects of weather,
catastrophes and public health crises, including COVID-19; labour
availability; disruptions to the Company's supply chains; changes
to regulatory environment, including interpretation of production
tax credits; armed hostilities and geopolitical conflicts; failure
to obtain necessary regulatory approvals in a timely fashion, or at
all; risks related to the development and potential development of
the Company's projects; conclusions of economic evaluations;
changes in project parameters as plans continue to be refined; the
availability of tax incentives in connection with the development
of renewable energy projects and the sale of electrical energy; as
well as those factors discussed in the sections relating to risk
factors discussed in the Company's continuous disclosure filings on
SEDAR. Such statements and information reflect the current view of
Revolve. By their nature, forward-looking statements involve known
and unknown risks, uncertainties and other factors which may cause
our actual results, performance or achievements, or other future
events, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements.
The forward-looking information contained in this press
release represents the expectations of Revolve as of the date of
this press release and, accordingly, is subject to change after
such date. Readers should not place undue importance on
forward-looking information and should not rely upon this
information as of any other date. Revolve does not undertake to
update this information at any particular time except as required
in accordance with applicable laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy
of this release.
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SOURCE Revolve Renewable Power Corp