RE Royalties: How the Private Sector Can Take the Initiative on Climate Change Irrespective of Provincial Politics


The debate on climate change in Ontario has often, rightly or not, revolved around the question of how the federal carbon tax is not the only way to reduce greenhouse gas emissions in the province.  Some of the more common examples that demonstrate how the province of Ontario has been able to curb its emissions without the need for a federal carbon tax include Dalton McGuinty's 100% phase-out of coal-generated electricity in 2014; Ontario became the first jurisdiction in North America to achieve this objective.  Other examples were Kathleen Wynne's province-wide rebates on the purchase of electric vehicles as well as her provincial cap-and-trade scheme which was intended to link to the join cap-and-trade program between California (U.S.) and the province of Quebec.  What these examples all have in common is: (1) that all were advanced under the leadership of provincial liberal governments; (2) these were public-sector initiated programs and policies. 

Since Doug Ford's Progressive Conservative party came into power, not only has he failed to advance a climate change action plan for the province of Ontario but also has he scrapped previous liberal government programs and policies, like Wynne's cap-and-trade program and rebates on electric vehicles purchases.  Despite these actions by Premier Doug Ford, the Progressive Conservative government under Doug Ford continues its fight against the federal carbon tax that came into effect on April 1, 2019, following Doug Ford's omission to implement a provincial climate change action plan that meets national standards.  As part of their rhetoric, Doug Ford has repeatedly stated that a federal carbon tax is not the only way to fight climate change in Ontario. How else, then, can the province of Ontario fight climate change?  The company RE Royalties is one example of how the private sector can take the initiative in fighting climate change, irrespective of the direction that provincial politics take in regards to climate change. 

Simply stated, RE Royalties, Ltd. is a company that acquires revenue-based royalties from renewable energy generation facilities by providing a non-dilutive royalty financing solution to privately-held and publicly-traded renewable energy generation and development companies.  Today, (Tuesday, May 16, 2019), RE Royalties announced today that it has entered into a loan and royalty agreement with a group of privately held companies in Ontario ("Ontario Companies") on 49 roof-top solar projects ("Solar Projects").  Royalty will be providing Ontario Solar Companies with a $5 million interest-bearing loan for a term of 1-year in exchange for a gross revenue royalty on the Solar Projects.  

The Solar Projects have a combined generation capacity of 15.7MW and has been in operation for 3 to 4 years.  The Solar Projects are capable of generating 15.7 million kilowatt hours of clean energy per year; capable of removing 874 tones of carbon from the electricity grid or providing clean electricity to approximately 1,943 homes in the province of Ontario annually.  All are qualified under the Ontario Feed-in-Tariff program.  Ontario Solar Companies will be using the capital from the loan to complete construction on a separate portfolio of solar-related projects across Canada.

Bernard Tan, CEO of RE Royalties, Ltd., has underscored the fact that Ontario is a leader in solar energy, with 98% of solar projects built and operating in Canada currently located in the province of Ontario.  Providing upfront capital to the Ontario Solar Companies to expand their solar projects, thereby allowing Ontario to reduce its carbon emissions is doing planet earth a great service as it demonstrates leadership and initiative in developing clean energy projects to help fight the global fight against climate change.

About RE Royalties Ltd.


RE Royalties acquires revenue-based royalties from renewable energy generation facilities by providing a non-dilutive royalty financing solution to privately-held and publicly-traded renewable energy generation and development companies. The Company currently owns royalties from solar, wind and hydro projects in Canada, Europe and the United States. The Company's business objectives are to provide shareholders with a strong growing yield, robust capital protection, high rate of growth through re-investment and a sustainable investment focus.

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