Altius Renewable Royalties Announces Royalty Investment in Construction-Stage MISO Project Coles Wind

Executive Summary

• Great Bay Royalties (GBR) closed an approximately US$73 million royalty investment with Apex Clean Energy for the 311 MW Coles Wind project in Illinois, marking GBR’s largest single asset royalty acquisition to date.
• The transaction utilizes a tiered royalty rate structure designed to meet initial return objectives before stepping down to a long-term gross revenue rate, anchored by a strong 20-year Power Purchase Agreement (PPA).
• Altius provided approximately US$12.4 million (C$17 million) to its affiliate ARR to fund its proportional share of the capital contribution, with construction having commenced in January 2026 and an expected Commercial Operations Date in H2 2027.

Key Details

• Investment Amount: ~US$73 million royalty investment.
• Counterparty & Project: Apex Clean Energy (Tier 1 developer/operator) and the 311 MW Coles Wind project located in Illinois.
• Project Timeline: Construction began in January 2026; expected Commercial Operations Date (COD) in H2 2027.
• Strategic Significance: Represents GBR’s largest single asset royalty acquisition to date and its second construction-stage royalty in the MISO region.
• Royalty Structure: Tiered rates that are higher during the initial 10 years to meet base return objectives, subsequently stepping down to a long-term gross revenue royalty rate consistent with GBR’s portfolio. Includes a lower perpetual tail royalty rate to avoid disincentivizing future project life extensions or production enhancements.
• Funding Sources: Funded through a combination of GBR cash on hand and new capital contributions from Altius Renewable Royalties Corporation (ARR) and Apollo Global Management.
• Altius Capital Contribution: Altius provided approximately US$12.4 million (C$17 million) to ARR to support its share of the GBR capital call.
• GBR Ownership Structure: GBR is a joint venture between ARR and funds managed by Apollo Global Management, with an effective 29% interest attributable to Altius.
• Market Context: The investment is anchored by a strong 20-year PPA, reflecting unprecedented market demand for new, near-term deployable electricity sources.

Notable Quotes

• Brian Dalton, CEO of Altius: “We are pleased to once again provide support to Apex and to mark GBR’s second construction stage royalty in MISO, further diversifying its portfolio of 14 operating royalties. We also note the strong 20-year PPA that anchors Coles Wind and is reflective of the unprecedented level of demand for new, near-term deployable sources of electricity that is characterizing the current market.”