A North American owner, operator and developer of renewable energy projects, Revolve Renewable Power, has secured an innovative facility from Export Development Canada (EDC) that will allow it to issue letters of credit (L/Cs) without putting up cash collateral.

The Account Performance Security Guarantee (APSG) facility of US$2.9 million is being provided in support of an interconnection financial security for the Primus Wind Project in the US in the amount of US$2.5 million and a performance security connected to the Tamihi Creek Hydro Project in British Columbia in the amount of $175,000 Canadian dollars (CA$175,000 - US$121,000).

L/C milestone

The APSG allows Revolve to issue L/Cs with the company's financial institution without putting up cash collateral, providing the company with better access to cash and working capital.

"Partnering with EDC for the provision of the security on these L/Cs is an important milestone for Revolve as we accelerate the development of multiple renewable energy projects," according to the renewable power developer's CEO, Myke Clark.

"This facility frees up working capital and allows us to deploy that capital towards project development initiatives," he says.

APSG usage

In December, Revolve announced that it had completed the interconnection process for the 49.6 megawatt (MW) Primus Wind Project and has signed an interconnection agreement with Tri-State Generation and Transmission.

Completion of this milestone paves the way for the project to complete the remaining permitting works with a target of being 'ready to build' in late 2025. Some of the EDC APSG is being utilised for the interconnection bond on the project.

The Tamihi Creek Hydro Project is a proposed 15MW run-of-river project in Chilliwack, British Columbia. A portion of the EDC APSG is being utilised for a permitting bond on the project.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.