Alternus Clean Energy and Hover Energy Announce Exciting New Joint Venture to Deliver Next Generation Microgrid Solutions to Data Centers and Corporate Customers

Rhea-AI Summary

Alternus Clean Energy (ALCE) and Hover Energy have announced a new joint venture to provide microgrid solutions for data centers and corporate customers aiming for net zero carbon emissions. The venture combines Hover's patented microgrid technology with Alternus' solar and project finance expertise. With the microgrid market projected to reach $100 billion by 2032, the partnership has already developed a pipeline of over 35 projects totaling 60MW capacity in the US, UK, and Ireland.

Alternus will own 51% of the venture and recognize all revenue. The deal involves Alternus issuing 5 million restricted ALCE shares to Hover initially, with potential for additional shares based on performance. This strategic move positions the joint venture to capitalize on the growing demand for distributed energy solutions, particularly in power-hungry data centers.

Positive

• Joint venture combines Hover's microgrid technology with Alternus' solar and project finance expertise
• Microgrid market projected to reach $100 billion by 2032, growing at 20.5% CAGR
• Developed pipeline of over 35 microgrid projects totaling 60MW capacity
• Alternus to own 51% of the joint venture and recognize all revenue
• Expansion into booming microgrid vertical ahead of initial timeline

Negative

• Issuance of 5 million restricted ALCE shares to Hover, with potential for additional 6 million shares, may lead to shareholder dilution

Insights

Financial Analyst

This joint venture between Alternus Clean Energy and Hover Energy represents a strategic move into the rapidly growing microgrid market. With the market projected to reach $100 billion by 2032, growing at a CAGR of 20.5%, this partnership positions both companies to capitalize on significant growth opportunities.

The deal structure, with Alternus owning 51% and recognizing all revenue, could lead to substantial financial upside. However, investors should note the dilutive effect of issuing up to 11 million new shares to Hover. The immediate pipeline of 35 projects with 60MW capacity suggests strong near-term revenue potential, but profitability and execution will be key factors to monitor.

Tech Expert

The joint venture's focus on next-generation microgrid solutions for data centers and corporate customers is timely and innovative. By combining Hover's patented wind generators and energy control systems with Alternus' solar expertise, they're creating a comprehensive clean energy solution. This integrated approach could give them a competitive edge in the market.

The emphasis on helping customers achieve net-zero carbon emissions aligns with growing corporate sustainability initiatives. The ability to offer both capex and opex solutions increases flexibility for potential clients. However, the success of this venture will depend on the technological integration and scalability of their combined solutions in real-world applications.

Market Research Analyst

The microgrid market's projected growth to $100 billion by 2032 presents a significant opportunity for this joint venture. Targeting data centers is strategic, given their increasing power demands and focus on sustainability. The initial pipeline of projects in the US, UK and Ireland provides a solid foundation, but expansion into other markets will be important for long-term growth.

The joint venture's "one-stop-shop" approach for Net Zero solutions could be a key differentiator in a competitive market. However, the success will largely depend on their ability to deliver cost-effective, reliable solutions at scale. Investors should watch for early project completions and customer feedback to gauge the venture's market traction and potential for capturing market share.

Microgrid Market forecast to reach over $100 Billion by 2032

Fort Mill, South Carolina--(Newsfile Corp. - August 8, 2024) - Alternus Clean Energy (Nasdaq: ALCE) ("Alternus"), a transatlantic independent clean energy producer, and Hover Energy ("Hover"), a leading international microgrid solutions provider, are proud to announce the launch of a new joint venture company, specifically formed to help data centers and other commercial and industrial customers achieve net zero carbon emissions.

The joint venture strategically leverages the strengths of both Alternus and Hover, including Hover Energy's valuable microgrid patented portfolio covering wind generators and energy control systems, combined with Alternus' experience in solar and project finance, development and acquisition.

As noted by GMI ("Global Market Insights"), the microgrid market size was valued at $17.8 Billion in 2023 and is anticipated to grow at a CAGR of 20.5% between 2024 and 2032, reaching over $100 billion by 2032. Microgrids are localized energy systems capable of operating independently or in conjunction with the main electrical grid. They consist of distributed energy resources, such as solar panels, wind turbines, batteries, and generators, that generate, store, and manage electricity within a defined area. These devices can serve a variety of applications, from residential and commercial buildings to industrial facilities and entire communities. Hover is a leading developer with its own proprietary technology in the industry.

The parties have completed binding terms that will see the formation of the joint venture company where Alternus will own 51% and Hover 49%. This already includes a developed pipeline of over 35 microgrid projects measuring over 60MW's of capacity with blue chip global clients in the US, UK and Ireland as initial target markets. As part of this new structure, Alternus will recognize all revenue, with distributions made after consideration for reinvestment in the venture. Under the terms of the agreement, Alternus is issuing 5 million restricted ALCE shares to Hover as initial consideration with a further 3.5 million issued at closing and a potential 2.5 million additional shares issuable depending on share price performance after one year from closing. The Company has filed an 8k with the SEC.

"This is the future, and it is available today. The combination of skills and resources under this joint venture company will deliver a previously unavailable solution to the market. We see a future where the grid is connected to hundreds, even thousands, of micro-grids. What has been needed is a one-stop-shop to allow companies achieve Net Zero directly. If your goal is real and tangible decarbonization of your power usage, we will design it, build it, and deliver it to you, either as a capex or opex solution depending on your preference and budget. It's the reason we chose this path" stated Chris Griffin, CEO of Hover Energy. "We are honored to build on the success we've already had with our partners at Alternus. They are an exceptional team with whom we have already delivered meaningful progress in this sector. Given our compelling track record on all fronts, I can't wait to see what we accomplish together!"

"For Alternus, this is a very exciting expansion into a booming vertical; microgrids. With Hover, we surpassed our current timeline; initially expecting to achieve 60MW of capacity within two years; however this was achieved within just five months. This remarkable achievement underscores our commitment and dedication to this sector. Distributed energy makes the world more resilient, and this joint venture is well positioned to deliver successful economic and 100% green energy projects to our customers in the near term", offered Alternus CEO Vincent Browne. 80mw over 2 years an we did it in 5 months

"It is very clear that demand is exploding for onsite clean energy delivered through a distributed architecture - particularly within increasingly power hungry data centers who now need more power than ever. Alternus' reach in the utility-scale solar power industry combined with Hover's microgrid systems uniquely positions this joint venture to capture its share of this rapidly expanding segment of the power market. We have big plans for this venture and look forward to achieving its full potential with Chris and his team at Hover." Mr. Browne concluded.

For more information about Hover Energy and its sustainable energy solutions, please visit https://HoverEnergy.com. For more information about Alternus Clean Energy and its sustainable energy solutions, please visit https://alternusce.com.

About Alternus Clean Energy:

Alternus is a transatlantic clean energy independent power producer. Headquartered in the United States, we currently develop, install, own, and operate utility scale solar parks in North America and Europe. Our highly motivated and dynamic team at Alternus have achieved rapid growth in recent years. Building on this, our goal is to reach 3GW of operating projects within five years through continued organic development activities and targeted strategic opportunities. Our vision is to become a leading provider of 24/7 clean energy delivering a sustainable future of renewable power with people and planet in harmony.

About Hover Energy:

Hover Energy, LLC is a pioneering provider of sustainable energy solutions committed to driving innovation in the renewable energy sector. With a focus on designing, developing and deploying its patented Wind-Powered MicrogridTM, Hover Energy is dedicated to building a more efficient, cleaner, and more sustainable future for generations to come.

Forward-Looking Statements

Certain information contained in this release, including any information on the Company's plans or future financial or operating performance and other statements that express the Company's management's expectations or estimates of future performance, constitute forward-looking statements. When used in this notice, words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions, as they relate to us or our management team, identify forward-looking statements. Such forward-looking statements are based on the beliefs of management, as well as assumptions made by, and information currently available to, the Company's management. Such statements are based on a number of estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond the control of the Company. The Company cautions that such forward-looking statements involve known and unknown risks and other factors that may cause the actual financial results, performance or achievements of the Company to differ materially from the Company's estimated future results, performance or achievements expressed or implied by the forward-looking statements. These statements should not be relied upon as representing Alternus' assessments of any date after the date of this release. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Contact:
ir@alternusenergy.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219157

FAQ

What is the new joint venture between Alternus Clean Energy (ALCE) and Hover Energy?

The joint venture aims to provide microgrid solutions for data centers and corporate customers seeking to achieve net zero carbon emissions. It combines Hover's patented microgrid technology with Alternus' expertise in solar and project finance.

How many microgrid projects has the Alternus-Hover joint venture already developed?

The joint venture has developed a pipeline of over 35 microgrid projects, totaling more than 60MW of capacity, with initial target markets in the US, UK, and Ireland.

What is the projected growth of the microgrid market according to the Alternus (ALCE) press release?

According to Global Market Insights, the microgrid market is expected to grow from $17.8 billion in 2023 to over $100 billion by 2032, with a CAGR of 20.5% between 2024 and 2032.

How many shares of Alternus Clean Energy (ALCE) are being issued to Hover as part of the joint venture agreement?

Alternus is issuing 5 million restricted ALCE shares to Hover initially, with 3.5 million more at closing, and a potential additional 2.5 million shares based on share price performance after one year.