Ellomay Capital Announces Execution of An Agreement for the Sale of Tax Credits of Texas Solar Projects
Ellomay Capital (NYSE American; TASE: ELLO) has announced a significant development in its U.S. strategic growth plan. The company has entered into an agreement to sell and transfer Investment Tax Credits (ITCs) associated with four solar projects in Texas: Fairfield (13.4 MW), Malakoff (13.92 MW), Mexia (11.1 MW), and Talco (10.5 MW). The deal, executed with an experienced financial institution, is expected to generate approximately $19 million, representing about 32% of the expected total portfolio costs.
This transaction, facilitated under the Inflation Reduction Act's new transferability provisions, allows Ellomay to retain 100% of the operating profits from these projects. The funds will be disbursed after each project is placed in service and meets applicable requirements. Fairfield and Malakoff are expected to be operational by the end of Q4 2024, while Mexia and Talco are slated for completion by the end of Q2 2025.
Ellomay Capital (NYSE American; TASE: ELLO) ha annunciato un importante sviluppo nel suo piano di crescita strategica negli Stati Uniti. L'azienda ha stipulato un accordo per vendere e trasferire i Crediti d'Imposta per Investimenti (ITC) associati a quattro progetti solari in Texas: Fairfield (13,4 MW), Malakoff (13,92 MW), Mexia (11,1 MW) e Talco (10,5 MW). L'accordo, eseguito con una istituzione finanziaria esperta, si prevede genererà circa 19 milioni di dollari, rappresentando circa 32% dei costi totali attesi del portafoglio.
Questa transazione, facilitata dalle nuove disposizioni di trasferibilità dell'Inflation Reduction Act, consente a Ellomay di mantenere il 100% dei profitti operativi derivanti da questi progetti. I fondi saranno erogati dopo che ogni progetto sarà messo in servizio e soddisferà i requisiti applicabili. Fairfield e Malakoff dovrebbero essere operativi entro la fine del quarto trimestre del 2024, mentre Mexia e Talco sono previsti per il completamento entro la fine del secondo trimestre del 2025.
Ellomay Capital (NYSE American; TASE: ELLO) ha anunciado un desarrollo significativo en su plan de crecimiento estratégico en EE. UU. La compañía ha llegado a un acuerdo para vender y transferir los Créditos Fiscales de Inversión (ITC) asociados con cuatro proyectos solares en Texas: Fairfield (13.4 MW), Malakoff (13.92 MW), Mexia (11.1 MW) y Talco (10.5 MW). El acuerdo, ejecutado con una institución financiera experimentada, se espera que genere aproximadamente $19 millones, representando alrededor del 32% de los costos totales esperados del portafolio.
Esta transacción, facilitada bajo las nuevas disposiciones de transferibilidad de la Ley de Reducción de Inflación, permite a Ellomay retener el 100% de las ganancias operativas de estos proyectos. Los fondos se desembolsarán después de que cada proyecto sea puesto en servicio y cumpla con los requisitos aplicables. Se espera que Fairfield y Malakoff estén operativos para finales del cuarto trimestre de 2024, mientras que Mexia y Talco estén completados para finales del segundo trimestre de 2025.
Ellomay Capital (NYSE American; TASE: ELLO)는 미국 전략 성장 계획의 중요한 발전을 발표했습니다. 이 회사는 텍사스에서 네 개의 태양광 프로젝트와 관련된 투자 세액 공제(ITC)를 판매 및 이전하는 계약을 체결했습니다: Fairfield (13.4 MW), Malakoff (13.92 MW), Mexia (11.1 MW) 및 Talco (10.5 MW). 경험이 풍부한 금융 기관과 체결된 이 거래는 약 1900만 달러를 생성할 것으로 예상되며, 예상 총 포트폴리오 비용의 약 32%를 나타냅니다.
이 거래는 인플레이션 감축법의 새로운 이전 가능성 조항을 통해 촉진되었으며, Ellomay는 이러한 프로젝트로부터의 운영 이익의 100%를 유지할 수 있습니다. 자금은 각 프로젝트가 서비스에 배치되고 해당 요구 사항을 충족한 후에 지급됩니다. Fairfield와 Malakoff는 2024년 4분기 말까지 운영될 것으로 예상되며, Mexia와 Talco는 2025년 2분기 말까지 완공될 예정입니다.
Ellomay Capital (NYSE American; TASE: ELLO) a annoncé un développement significatif dans son plan de croissance stratégique aux États-Unis. La société a conclu un accord pour vendre et transférer des Crédits d'Impôt pour Investissements (ITC) associés à quatre projets solaires au Texas : Fairfield (13,4 MW), Malakoff (13,92 MW), Mexia (11,1 MW) et Talco (10,5 MW). L'accord, réalisé avec une institution financière expérimentée, devrait générer environ 19 millions de dollars, représentant environ 32% des coûts totaux attendus du portefeuille.
Cette transaction, facilitée par les nouvelles dispositions de transférabilité de la Loi sur la Réduction de l'Inflation, permet à Ellomay de conserver 100% des bénéfices d'exploitation de ces projets. Les fonds seront distribués après que chaque projet ait été mis en service et ait satisfait aux exigences applicables. Fairfield et Malakoff devraient être opérationnels d'ici la fin du quatrième trimestre 2024, tandis que Mexia et Talco sont prévus pour être achevés d'ici la fin du deuxième trimestre 2025.
Ellomay Capital (NYSE American; TASE: ELLO) hat eine bedeutende Entwicklung in seinem strategischen Wachstumsplan für die USA angekündigt. Das Unternehmen hat eine Vereinbarung getroffen, um Investitionssteuergutschriften (ITCs) zu verkaufen und zu übertragen, die mit vier Solarprojekten in Texas verbunden sind: Fairfield (13,4 MW), Malakoff (13,92 MW), Mexia (11,1 MW) und Talco (10,5 MW). Der Deal, der mit einer erfahrenen Finanzinstitution abgeschlossen wurde, wird voraussichtlich etwa 19 Millionen Dollar einbringen, was etwa 32% der erwarteten Gesamtkosten des Portfolios entspricht.
Diese Transaktion, die gemäß den neuen Übertragbarkeitsbestimmungen des Inflation Reduction Act eingefädelt wurde, ermöglicht es Ellomay, 100% der Betriebserträge dieser Projekte zu behalten. Die Mittel werden ausgezahlt, nachdem jedes Projekt in Betrieb genommen und die geltenden Anforderungen erfüllt wurde. Fairfield und Malakoff sollen bis Ende des 4. Quartals 2024 in Betrieb gehen, während Mexia und Talco bis Ende des 2. Quartals 2025 abgeschlossen sein sollen.
- Agreement to sell Investment Tax Credits (ITCs) for four Texas solar projects
- Expected to receive approximately $19 million from ITC sale
- Sale represents about 32% of expected total portfolio costs
- Retention of 100% operating profits from the projects
- Expansion of renewable energy presence in the U.S. market
- Customary indemnification obligations for damages not covered by tax insurance policy
- Company provided guarantee to the ITC purchaser for certain continued eligibility requirements
Insights
This agreement marks a significant financial milestone for Ellomay Capital, potentially boosting its liquidity and project development capabilities. The expected
The strategic decision to sell ITCs while retaining
Investors should note the phased completion of projects, with expected service dates spanning from Q4 2024 to Q2 2025. This staggered approach could provide a steady stream of cash inflows, potentially supporting further investments or improving the company's financial position over time.
However, the customary indemnification obligations and guarantee provided to the ITC purchaser introduce some risk. Investors should monitor Ellomay's ability to meet continued eligibility requirements to avoid potential financial liabilities.
Ellomay's execution of this agreement signals a strong commitment to expanding its renewable energy footprint in the U.S. market. The four Texas solar projects, totaling 48.92 MW of capacity, represent a significant addition to the company's portfolio and demonstrate its ability to develop multiple utility-scale projects simultaneously.
The strategic location of these projects in Texas is noteworthy. Texas leads the U.S. in wind power generation and is rapidly expanding its solar capacity, offering a favorable regulatory environment and strong market demand for renewable energy. This positioning could provide Ellomay with stable long-term revenue streams and potential for future expansion.
The company's ability to leverage the Inflation Reduction Act's provisions effectively shows adaptability to changing policy landscapes, a important skill in the dynamic renewable energy sector. This deal structure, retaining operational control while monetizing tax benefits, could serve as a template for future projects, potentially accelerating Ellomay's growth in the U.S. market.
Tel-Aviv, Israel, Sept. 23, 2024 (GLOBE NEWSWIRE) -- Ellomay Capital Ltd. (NYSE American; TASE: ELLO) (“Ellomay” or the “Company”), a renewable energy and power generator and developer of renewable energy and power projects in Europe, Israel and the USA, today announced a key achievement in its U.S. strategic growth plan. The Company has successfully entered into an agreement for the sale and transfer of Investment Tax Credits (ITCs) linked to its Fairfield (13.4 MW), Malakoff (13.92 MW), Mexia (11.1 MW), and Talco (10.5 MW) solar projects, all located in the State of Texas, USA. The agreement was executed with a reputable financial institution, with vast experience in executing tax credit transactions.
Through this transaction, the Company expects to receive approximately
Ran Fridrich, CEO and a board member of Ellomay, said “The agreement to sell the Investment Tax Credits to an institutional buyer represents a major milestone in the development of Ellomay’s solar portfolio in Texas and underscores the Company’s commitment to expanding its renewable energy presence in the U.S. The Company sees great importance in its ability to sell the ITCs while maintaining the benefits of accelerated depreciation in the Company. The Company believes that additional projects in the pipeline will be able to follow a similar strategy.”
About Ellomay Capital Ltd.
Ellomay is an Israeli based company whose shares are listed on the NYSE American and 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, USA 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, Spain, the Netherlands and Texas, USA, including:
- Approximately 335.9 MW of operating photovoltaic power plants in Spain (including a 300 MW photovoltaic plant in owned by Talasol, which is
51% owned by the Company) and approximately 20 MW of operating photovoltaic power plants in Italy; 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 about6% -8% of Israel’s total current electricity consumption;- Groen Gas Goor B.V., Groen Gas Oude-Tonge B.V. and Groen Gas Gelderland B.V., project companies operating anaerobic digestion plants in the Netherlands, with a green gas production capacity of approximately 3 million, 3.8 million and 9.5 million Nm3 per year, respectively;
83.333% of Ellomay Pumped Storage (2014) Ltd., which is involved in a project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel;- Ellomay Solar Italy Ten SRL that is construction a photovoltaic plant (18 MW) in Italy;
- Ellomay Solar Italy Four SRL (15.06 MW), Ellomay Solar Italy Five SRL (87.2 MW), Ellomay Solar Italy Seven SRL (54.77 MW), Ellomay Solar Italy Nine SRL (8 MW) and Ellomay Solar Italy Fifteen SRL (10 MW) that are developing photovoltaic projects in Italy that have reached “ready to build” status; and
- Fairfield Solar Project, LLC (13.44 MW), Malakoff Solar I, LLC (6.96 MW) and Malakoff Solar II, LLC (6.96 MW), that are constructing photovoltaic plants and Mexia Solar I, LLC (5.6 MW), Mexia Solar II, LLC (5.6 MW), and Talco Solar, LLC (10.3 MW), that are developing photovoltaic projects that have reached “ready to build” status, all in the Dallas Metropolitan area, Texas.
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 delays or failure in placing into service of any or all of the Texas solar facilities, failure to meet the continued eligibility requirements for the ITCs, changes in the markets and economy, changes in electricity prices and demand, continued war and hostilities in Israel and Gaza, regulatory changes, including extension of current or approval of new rules and regulations increasing the operating expenses of manufacturers of renewable energy in Spain, increases in interest rates and inflation, changes in the supply and prices of resources required for the operation of the Company’s facilities (such as waste and natural gas) and in the price of oil, the impact of continued military conflict between Russia and Ukraine, technical and other disruptions in the operations or construction of the power plants owned by the Company and general market, political and economic conditions in the countries in which the Company operates, including Israel, Spain, Italy and the United States. 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 Rubenbach (Weintraub)
CFO
Tel: +972 (3) 797-1111
Email: hilai@ellomay.com
FAQ
What is the total capacity of Ellomay Capital's Texas solar projects mentioned in the press release?
How much does Ellomay Capital (ELLO) expect to receive from the sale of Investment Tax Credits?
When are Ellomay Capital's Texas solar projects expected to be placed in service?
What legislation facilitated Ellomay Capital's (ELLO) sale of Investment Tax Credits?
