Royalties
Our investment approach aims to provide investors with exposure to high-quality, derisked and cash-flowing opportunities in cleantech and multi-type decarbonization projects, while providing leverage and upside from project expansion, optimization, and additional carbon reduction potential. The royalty model accomplishes this without the direct risk of operating cost inflation, capital expenditures, and logistical requirements of managing a project.
Royalties
In exchange for an initial investment, Green Star receives a percentage of revenue or output produced by a company or a project. We own gross revenue royalties on several of our assets.
Gross Revenue (GR) Royalty: A defined percentage of the gross value, revenue or proceeds from a project, without deductions of any kind.
Strengths of the Royalty Model
The royalty model allows Green Star to build a diversified and resilient portfolio that delivers both durable climate benefits and stable, risk‑adjusted returns.
Once established, the royalty business model benefits from a greater risk diversification than is typical for larger operating companies. Royalty companies tend to own a large portfolio of assets diversified by operation, counterparty, jurisdiction, and commodity, whereas operating companies are commonly dependent on only one or a few key projects. As we continue to grow, our goal as a diversified royalty company is to act as a managed exchange-traded investment fund, with the portfolio having exposure to multiple types of cleantech and decarbonization opportunities, carbon offset project types, operators, carbon registries, and jurisdictions.