About Us
Green Star Royalties Ltd. is a royalty investment company that invests into North American cleantech and carbon opportunities, with a particular focus on energy optimization, battery storage, material recycling, carbon removal and other innovative solutions that help enable a net-zero economy. We fund cash-flowing and near-cash-flowing opportunities, helping companies scale-up from their commercialization point by providing growth capital. We structured some of the world’s first cleantech and carbon royalties and our objective is to provide shareholders exposure to decarbonization projects with leverage and upside from project expansion and optimization, while continuing to pioneer climate finance solutions.
We operate as a joint venture between Star Royalties Ltd. (TSXV: STRR, OTCQX: STRFF), Agnico Eagle Mines Limited (TSX, NYSE: AEM) and Cenovus Energy Inc. (TSX, NYSE: CVE) and are currently owned 46% by Star Royalties, 26% by Agnico Eagle Mines, 26% by Cenovus Energy, and 2% by management.
We have differentiated Green Star Royalties by establishing best-in-class partnerships across our entire business model. The strategic investments from two senior Canadian natural resources and ESG leaders – Agnico Eagle Mines (March 2022) and Cenovus Energy (December 2023), have provided us with two cornerstone shareholders, validation of our business model and investment pipeline, expanded Board and Technical Committee expertise and a pathway to continue Green Star Royalties’ growth. From a project-level perspective, to ensure project development quality, scalability and longevity, we established working partnerships with top-tier North American project developers, as well as expanding relationships with numerous Canadian Indigenous communities and First Nations.
As a Company that prides itself in specializing in bespoke and operator-friendly financing solutions, our partnerships are instrumental to our ability in structuring mutually beneficial agreements that optimize our counterparties' capital structure and generate a return well above our cost of capital.
Highlights and Investment Rationale
- Growing cash flow from Tier 1 jurisdictions: Green Star Royalties is currently generating cashflow from its investments in both carbon credits and cleantech. Our continued focus is on North American projects, with a goal of minimizing geopolitical risk and favouring established, credible market mechanisms.
- Exposure to decarbonization and cleantech projects: Our strategy is to provide shareholders with exposure to attractive cleantech and carbon opportunities, with a focus on energy optimization, battery storage, material recycling, carbon removal and other innovative solutions that help enable a net-zero economy, while generating superior returns through the origination of royalty investments.
- Best-in-class partnerships: Green Star Royalties enjoys a strong working partnership with top-tier North American project developers, as well as expanding relationships with numerous Canadian Indigenous communities and First Nations. In early 2022, Green Star Royalties announced a strategic investment by Agnico Eagle Mines, a senior Canadian gold mining company and a globally-recognized leader in ESG practices, followed by an equal strategic investment by Cenovus Energy, a senior Canadian-based global energy company, in December 2023.
- First-mover and strong pipeline: Green Star Royalties structured some of the world’s first cleantech and carbon royalties and our objective is to continue pioneering climate finance solutions by executing on a pipeline of opportunities in decarbonization, energy optimization and carbon removal markets.
- Respected team: Green Star Royalties leverages the experience of Star Royalties’ management team, as well as its internal industry expertise in capital allocation and project evaluation. Its Board and Technical Committees review new investment opportunities and have representation from Star Royalties, Agnico Eagle Mines and Cenovus Energy.
- Strong governance and superior alignment: Green Star Royalties is managed with top-quartile corporate governance principles under a diverse board, with appointees from Star Royalties, Agnico Eagle Mines and Cenovus Energy. Our core operating philosophy is to structure innovative transactions that are well aligned with the interests of all stakeholders.
Partnerships
We have differentiated Green Star Royalties by establishing best-in-class partnerships across our entire business model. To ensure project development quality, scalability and longevity, we have developed a strong working partnership with Anew Climate, North America’s leading carbon offset developer. We also have a growing partnership with NativState, an Arkansas-based forest carbon project developer focused on aggregating small-to-medium forest landowners into Improved Forest Management projects.
To source attractive and aligned investment capital, our Company operates as a joint venture between Star Royalties, Agnico Eagle Mines and Cenovus Energy. Both Agnico Eagle Mines and Cenovus Energy are senior Canadian-based global leaders in natural resources and energy sectors, with strong, globally recognized commitments to sustainability and ESG practices. From a project-level perspective, we directly partner with Canadian First Nations, Indigenous communities and American landowners. As a Company that prides itself in specializing in bespoke and operator-friendly financing solutions, our partnerships are instrumental to our ability in structuring mutually beneficial agreements that optimize our counterparties' capital structure, and generate a return well above our cost of capital.
Strategic Investments by Agnico Eagle Mines and Cenovus Energy
Founded originally by Star Royalties in late 2021, our Company has had two strategic investors become capital partners and potential co-investors in future opportunities. Agnico Eagle Mines made a strategic investment into Green Star Royalties in March 2022, followed by Cenovus Energy in December 2023. Our Company is currently owned 46% by Star Royalties, 26% each by Agnico Eagle Mines and Cenovus Energy, and 2% by management. These strategic investments have provided us with two cornerstone shareholders, a significant recognition of value and a pathway to continue Green Star Royalties’ growth.
Agnico Eagle Mines is a senior Canadian gold mining company and is recognized globally for its leading ESG practices. Cenovus Energy is an integrated Canadian-based global energy company, focused on managing its assets in a safe, innovative and cost-efficient manner, while integrating ESG considerations into its business plans. Both Agnico Eagle Mines and Cenovus Energy are strongly aligned with our values and philosophy on sustainability, making them excellent strategic long-term shareholders.
We anticipate that strategic involvement of our cornerstone shareholders and their participation on the Board and Technical Committees will lead to an acceleration in our growth trajectory and will allow the Company to originate, fund and participate in additional, larger cleantech, and carbon offset opportunities. A more scalable build-out of the cleantech and carbon credit investment strategy will allow us to leverage our strong relationships and first-mover advantage to become the partner of choice in originating carbon credit and other green royalties, as well as attract capital from both generalist and ESG-focused investors.
Why Partner with Us?
We are not simply investors in environmental projects. We pride ourselves on being collaborative and transparent partners to North American, nature-based, and cleantech decarbonization project owners, with the ultimate goal of enabling a carbon-neutral economy. Our management team has decades of combined industry experience and a deep understanding of structuring creative transactions that work for all counterparties. That makes us partners of choice. Our royalty business model, North American focus, and strong expertise in governance and environmental stewardship make us attractive to both generalist and ESG-focused investors.
Experienced Management of Capital Allocators and Project Evaluators
Our team’s combined experience comprises more than 100 years of senior roles in capital markets and project evaluation. Our experience and time spent in various aspects of these industries have allowed us to cultivate strong industry relationships over decades of engagement, resulting in a pipeline of opportunities and an extensive global asset knowledge base.