TEL-AVIV, Israel, Nov. 19, 2019 /PRNewswire/ -- Ellomay
Capital Ltd. (NYSE American: ELLO) (TASE:
ELLO) ("Ellomay" or the "Company"), a renewable
energy and power generator and developer of renewable energy and
power projects in Europe and
Israel, today
announced the execution of a Framework Agreement between its
wholly-owned subsidiary, Ellomay Luxemburg Holdings S.àr.l.
("Ellomay Luxemburg"), and an established and experienced
European developer and contractor (the "Developer").
Pursuant to the Framework Agreement, the Developer will scout
and develop photovoltaic greenfield projects in Italy with the aim of reaching an aggregate
authorized capacity of at least 250 MW over a three-year period.
The Developer is currently in various advanced development stages
of projects in an aggregate capacity of approximately 100 MW. It is
currently estimated by the Developer that projects with an
aggregate capacity of approximately 70 MW will achieve "ready to
build" status by the end of 2020.
The Framework Agreement provides that each project will be
presented to Ellomay Luxemburg when it becomes "ready to build".
Thereafter, if Ellomay Luxemburg accepts the project, the Developer
is obligated to transfer to Ellomay Luxemburg 100% of the share
capital of the entity that holds the rights to the project. With
respect to each project, subject to the conditions set forth in the
Framework Agreement, Ellomay Luxemburg will enter into engineering,
procurement and construction ("EPC") and operation and
maintenance ("O&M") contracts with the Developer to
construct and operate the projects.
The Framework Agreement provides that when the first project
under the Framework Agreement achieves the positive environmental
impact assessment, the parties will negotiate the terms of a model
lump-sum, turnkey EPC contract and O&M contract, which will be
executed with the Developer in connection with all projects
acquired under the Framework Agreement.
In connection with the execution of the Framework Agreement,
Ellomay Luxemburg paid the Developer an advance payment in an
amount that is not material to the Company, based on the target
aggregate project capacity of 250 MW, and undertook to pay an
additional advance payment per each project when the project
submits its environmental impact assessment application. In the
event the target aggregate capacity is not achieved within a
three-year period or in the event a project does not reach "ready
to build" status, the advance payment will be proportionately
refunded.
The advancement and development of projects that will become
part of the Framework Agreement is subject to various conditions,
including receipt of regulatory approvals and licenses and
procurement of land rights. There can be no assurance as to the
aggregate capacity of projects that will reach the "ready to build"
status and as to the number and aggregate capacity of projects that
Ellomay Luxemburg will decide to acquire, and any such future
decision will be subject to the relevant circumstances existing at
the time a project reaches the "ready to build" status under the
Framework Agreement.
Ran Fridrich, CEO of Ellomay noted: "The Company is pleased to
update on the execution of the Framework Agreement with a developer
and contractor that Ellomay Luxemburg has worked with for many
years. We recognize the potential in the developing Italian
renewable energy sector, which is based on market prices and not on
governmental subsidies. Ellomay Luxemburg has been operating
in the Italian energy market for a substantial period and this
experience will enable us to utilize all the benefits included in
this business opportunity."
About Ellomay Capital Ltd.
Ellomay is an Israeli based company whose shares are registered
with the NYSE American and with the Tel Aviv Stock Exchange under
the trading symbol "ELLO". Since 2009, Ellomay Capital focuses
its business in the renewable energy and power sectors in
Europe and Israel.
To date, Ellomay has evaluated numerous opportunities and
invested significant funds in the renewable, clean energy and
natural resources industries in Israel, Italy
and Spain, including:
- Approximately 22.6MW of photovoltaic power plants in
Italy, approximately 7.9MW of
photovoltaic power plants in Spain
and a photovoltaic power plant of approximately 9 MW in
Israel;
- 9.375% indirect interest in Dorad Energy Ltd., which owns and
operates one of Israel's largest
private power plants with production capacity of approximately
850MW, representing about 6%-8% of Israel's total current electricity
consumption;
- 75% of Chashgal Elyon Ltd., Agira Sheuva Electra, L.P. and
Ellomay Pumped Storage (2014) Ltd., all of which are involved in a
project to construct a 156 MW pumped storage hydro power plant in
the Manara Cliff, Israel;
- 100% of Groen Gas Goor B.V. and of Groen Gas Oude-Tonge B.V.,
project companies developing anaerobic digestion plants with a
green gas production capacity of approximately 375 Nm3/h, in Goor,
the Netherlands and 475 Nm3/h, in
Oude Tonge, the Netherlands,
respectively;
- 51% of Talasol, which is involved in a project to
construct a photovoltaic plant with a peak capacity of 300MW in the
municipality of Talaván, Cáceres, Spain.
Ellomay Capital is controlled by Mr. Shlomo Nehama, Mr. Hemi
Raphael and Mr. Ran Fridrich. Mr. Nehama is one of
Israel's prominent businessmen and
the former Chairman of Israel's
leading bank, Bank Hapohalim, and Messrs. Raphael and Fridrich both
have vast experience in financial and industrial businesses. These
controlling shareholders, along with Ellomay's dedicated
professional management, accumulated extensive experience in
recognizing suitable business opportunities worldwide. Ellomay
believes the expertise of Ellomay's controlling shareholders and
management enables the Company to access the capital markets, as
well as assemble global institutional investors and other potential
partners. As a result, we believe Ellomay is capable of considering
significant and complex transactions, beyond its immediate
financial resources.
For more information about Ellomay, visit
http://www.ellomay.com.
Information Relating to Forward-Looking Statements
This press release contains forward-looking statements that
involve substantial risks and uncertainties, including statements
that are based on the current expectations and assumptions of the
Company's management. All statements, other than statements of
historical facts, included in this press release regarding the
Company's plans and objectives, expectations and assumptions of
management are forward-looking statements. The use of certain
words, including the words "estimate," "project," "intend,"
"expect," "believe" and similar expressions are intended to
identify forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. The Company
may not actually achieve the plans, intentions or expectations
disclosed in the forward-looking statements and you should not
place undue reliance on the Company's forward-looking statements.
Various important factors could cause actual results or events to
differ materially from those that may be expressed or implied by
the Company's forward-looking statements, including the number of
projects that reach the "ready to build" status and prevailing
market and economic conditions. These and other risks and
uncertainties associated with the Company's business are described
in greater detail in the filings the Company makes from time to
time with Securities and Exchange Commission, including its Annual
Report on Form 20-F. The forward-looking statements are made as of
this date and the Company does not undertake any obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise.
Contact:
Kalia Weintraub
CFO
Tel: +972 (3) 797-1111
Email: hilai@ellomay.com
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SOURCE Ellomay Capital Ltd