Ellomay Capital Announces Launch of its First Photovoltaic Projects in Texas

Rhea-AI Summary

Ellomay Capital Ltd. announces significant milestone in its strategic business plan by executing agreements for the engineering, procurement, and construction of photovoltaic projects in Texas, USA. The projects mark a step forward in the Company's photovoltaic portfolio expansion in the US market, showcasing proactive and efficient construction timelines.

Insights

Energy Sector Analyst

The announcement by Ellomay Capital Ltd. regarding the execution of EPC agreements for photovoltaic projects in Texas represents a pivotal development in the company's growth trajectory, particularly within the renewable energy sector in the United States. The rapid transition from greenfield phase to project execution underscores Ellomay's operational efficiency and ability to adhere to an accelerated construction timeline. This efficiency is a critical factor in the renewable energy industry, where the time-to-market can significantly influence a project's return on investment (ROI) and competitiveness.

The selection of a top-tier EPC contractor and procurement of solar modules from a leading manufacturer are indicative of Ellomay's commitment to quality and reliability. These strategic moves not only enhance the potential for successful project completion but also position the company favorably in a market that values sustainability and technological proficiency. By establishing a foothold in the Texas renewable energy market, Ellomay is poised to tap into the state's favorable regulatory environment and abundant solar resources, which could lead to lucrative power purchase agreements (PPAs) and long-term revenue streams.

Financial Analyst

The financial implications of Ellomay Capital's recent EPC agreements for stakeholders are multifaceted. The anticipated six-month completion timeline for the Fairfield and Malakoff projects may lead to an earlier-than-expected revenue generation, providing a positive outlook for short-term financial performance. Moreover, securing solar modules from a tier 1 manufacturer not only ensures high-quality inputs but may also mitigate risks associated with supply chain disruptions, a concern that has recently plagued various industries.

Investors should note the potential for growth in Ellomay's stock value as the company expands its project portfolio and leverages its expertise in renewable energy. The forward-looking statements regarding the commencement of additional projects in the second half of 2024 suggest a strategic roadmap aimed at scaling operations and diversifying revenue sources. However, it is important to remain cognizant of the inherent risks in the renewable energy sector, such as regulatory changes, technological advancements and market competition, which can impact long-term financial sustainability.

Market Research Analyst

The renewable energy market in the United States and Texas in particular, is experiencing significant growth, driven by both regulatory support and increasing demand for clean energy. Ellomay Capital's announcement of advancing its photovoltaic portfolio in this region is a testament to the company's strategic alignment with market trends. By executing these projects ahead of schedule, Ellomay demonstrates not only its commitment to rapid expansion but also positions itself as a competitive player in the market.

Understanding the broader context, Texas has emerged as a leading state for solar energy production, thanks to its large land area and high solar irradiance. Ellomay's entry into this market through the Fairfield and Malakoff projects could serve as a catalyst for further investment and expansion within the renewable energy sector. The company's proactive approach to project development and its strategic partnerships could serve as a model for other entities looking to capitalize on the growing demand for renewable energy solutions.

TEL-AVIV, Israel, March 5, 2024 /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, USA and Israel, today announced that it reached a significant milestone in its strategic business plan. The Company successfully executed agreements for the engineering, procurement and construction ("EPC") of its first photovoltaic projects in the State of Texas, USA, which provide for the construction of the Fairfield project (held by Fairfield Solar Project, LLC, with a capacity of 13.44 MW) and the Malakoff project (held by Malakoff Solar I, LLC and Malakoff Solar II, with an aggregate capacity of 13.92 MW) in the vicinity of Dallas.

The execution of these agreements marks a significant step in the advancement of the Company's photovoltaic portfolio in Texas, USA. The selected EPC contractor is renowned for its engineering expertise and high-quality construction of photovoltaic plants across the United States and the construction of these projects is expected to be completed within six months. The Company also entered into agreements to procure solar modules from one of the top five, tier 1, manufacturers for the Fairfield and Malakoff projects and for additional US PV projects under development (Mexia and Talco).

"The execution of EPC agreements for the Company's first US photovoltaic projects signifies an important moment for the Company's evolution in the US market. The transition of the Fairfield and Malakoff projects from the greenfield phase to project execution and initial site preparations was completed ahead of our expected schedule, exemplifying the Company's proactive and efficient approach to streamlining the construction timeline. These projects serve as proof of concept for the Company's strategic plan for rapid expansion and value creation and the Company's unwavering commitment to excellence and reliability. We are working tirelessly together with our US partners to achieve our goals and we expect that the Mexia and Talco projects (10.4 MW and 9.7 MW, respectively) will commence construction during the second half of 2024. We foresee significant growth from 2024 onwards. The Company is actively exploring additional opportunities to leverage its expertise in renewable energy, aiming to broaden our project portfolio during 2024 and onwards," remarked Ran Fridrich, CEO and Director of Ellomay Capital.

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, 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 35.9 MW 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;
• 51% of Talasol, which owns a photovoltaic plant with a peak capacity of 300MW in the municipality of Talaván, Cáceres, Spain;
• 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 One SRL and Ellomay Solar Italy Two SRL that are constructing photovoltaic plants with installed capacity of 14.8 MW and 4.95 MW, respectively, in the Lazio Region, Italy;
• Ellomay Solar Italy Four SRL, Ellomay Solar Italy Five SRL, Ellomay Solar Italy Seven SRL, Ellomay Solar Italy Nine SRL and Ellomay Solar Italy Ten SRL that are developing photovoltaic projects with installed capacity of 15.06 MW, 87.2 MW, 54.77 MW, 8 MW and 18 MW, respectively, in Italy that have reached "ready to build" status; and
• Fairfield Solar Project, LLC, Malakoff Solar I, LLC, Malakoff Solar II, LLC, Mexia I Solar, LLC, Mexia II Solar, LLC, and Talco Solar, LLC, that are developing photovoltaic projects with installed capacity of 13.44 MW, 6.96 MW, 6.96 MW, 5.2 MW, 5.2 MW and 9.7 MW respectively, in the Dallas Metropolitan area, Texas, and have reached "ready to build" status.

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 in the commencement, performance and completion of construction of the projects, shortage of equipment required for the construction of the projects, delays in the advancement and execution of EPC agreements in connection with other projects, the impact of the war and hostilities in Israel and Gaza, changes in electricity prices and demand, regulatory changes, increases in interest rates and inflation, changes in the supply and prices of resources required for the operation of the Company's facilities and in the price of oil, the impact of the 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 the United States, Israel, Spain and Italy. 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

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SOURCE Ellomay Capital Ltd.

FAQ

What milestone did Ellomay Capital Ltd. announce in its strategic business plan?

Ellomay Capital Ltd. announced reaching a significant milestone by executing agreements for the engineering, procurement, and construction of its first photovoltaic projects in Texas, USA.

What are the names and capacities of the photovoltaic projects in Texas executed by Ellomay Capital Ltd.?

The projects are the Fairfield project (13.44 MW) held by Fairfield Solar Project, LLC, and the Malakoff project (13.92 MW) held by Malakoff Solar I, LLC and Malakoff Solar II.

Who is the CEO and Director of Ellomay Capital Ltd.?

Ran Fridrich is the CEO and Director of Ellomay Capital Ltd.

When are the Mexia and Talco projects expected to commence construction?

The Mexia and Talco projects (10.4 MW and 9.7 MW, respectively) are expected to commence construction during the second half of 2024.

What is the Company actively exploring in terms of opportunities?

The Company is actively exploring additional opportunities to leverage its expertise in renewable energy and broaden its project portfolio during 2024 and onwards.