Revolve Provides Update on Commissioning of its BESS Project Located in Cancun, Mexico
VANCOUVER, BC, April 4, 2023 /CNW/ - Revolve Renewable Power Corp. (TSXV: REVV) ("Revolve" or the "Company") is pleased to provide a further 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 under its new division, Revolve Renewable Business Solutions. See News Release dated September 15, 2022.
The majority of installation and commissioning works have now been completed at the Project and it is expected to be fully operational and revenue generating from May 1, 2023.
- 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 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") 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.
Quartux have provided the Company with an update on the installation works for the Project, which is summarized as follows:
- Delivery of the entire BESS system to project site has now been completed.
- Installation and commissioning of the first two BESS units representing c.70% of the project has also been completed and both of these units are operational.
- Installation of the final BESS unit is due to commence this week and full commissioning is expected before the end of April 2023.
- Construction, installation and commissioning costs for the Project remain in line with previous guidance.
- The Project is forecast to be fully operational and revenue generating from May 1, 2023 under the 10 year ESA agreement.
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 News release dated October 16, 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 final drawdown under this facility of C$368,249.
Eric Hickert (Head of Distributed Generation) commented, "The Cancun BESS project is now moving into the final stages with full commissioning expected in the coming weeks. We continue to see increasing demand for similar projects across our target markets and remain confident of securing further new projects in the short term."
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. 2,350MW 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 and 71.8MW under development.
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 (distributed generation) assets.
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.
SOURCE Revolve Renewable Power Corp
Steve Dalton, CEO, [email protected] or Sunita Prasad, VP, Corporate Development & Investor Relations, Phone: +1 778-885-5550, [email protected]
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