Global alternative investment manager Apollo Global Management announced the formation of a joint venture Altius Minerals Corporation (TSX:ALS) subsidiary Altius Renewable Royalties. The JV aims to accelerate the development of Altius subsidiary Great Bay Renewables, a leading provider of renewable energy development capital in North America.
Great Bay provides strategic capital to renewable energy developers via a flexible, proprietary royalty structure that can be applied to all stages of a renewable project’s life cycle and help accelerate the development process in a non-dilutive structure. Since inception in 2017, Great Bay has invested more than $60 million in leading developers such as Apex Clean Energy and Tri Global Energy, which together are advancing over 18 gigawatts of wind and solar projects.
According to the terms of the deal, Apollo will invest up to $200 million, and will have the opportunity to acquire up to a 50% stake in Great Bay. Proceeds from Apollo’s investment will go toward the development of prominent renewable energy platforms in North America.
The joint venture positions Apollo’s infrastructure strategy as the first in its asset class to fund renewable royalties. The company stated that it expects to establish a leadership position in the space.
Geoffrey Strong, Senior Partner and Co-Head of Infrastructure and Natural Resources at Apollo, said:
“Demand for renewable energy and storage continues to increase with the ongoing energy transition, and the Great Bay team has established itself as an ideal partner to help companies finance these critical endeavors. Our longstanding track record in renewable energy within our infrastructure business along with our familiarity and expertise in royalties gives us great confidence in establishing this new joint venture with Great Bay and Altius.”
Frank Getman, CEO of Great Bay, said:
“Teaming up with Apollo adds incredible expertise and financial horsepower to help advance the adoption of our innovative renewable royalty financing. New and innovative forms of capital such as our renewable royalty product will be required as the pace of renewable energy adoption accelerates and we transition to a clean energy future.”
Altius CEO Brian Dalton said:
“The team at Apollo stood out during our search for a strategic partner in terms of their depth of industry knowledge, like-minded vision for the future, technical and financial evolution of the renewable energy sector as well as the spirit of partnership and cooperation that they brought to the table. We are very excited to work together to rapidly scale the business and help accelerate the growth of the renewable energy sector through innovative royalty partnerships.”
Apollo Principal Corinne Still added:
“We are excited to work with Frank, Brian, and the entire Great Bay team to offer attractive capital that will accelerate production of renewable energy and help major corporations, states, and cities to reach their ambitious sustainability goals.”