N2OFF Inc. and Solterra Announce Potential to Increase Capacity in Solar PV Joint Venture Project
Rhea-AI Summary
N2OFF Inc. (NASDAQ: NITO) and Solterra Renewable Energy have announced potential enhancements to their Solar PV Joint Venture Project in Meltz, Germany. Following approval for grid connection, Solterra reported that the allocation is approximately 10% greater than initially anticipated. This excess capacity presents two potential pathways to maximize value:
1. Increasing the project's capacity by up to 10%
2. Incorporating battery storage solutions
The current project design requires a 97 MW grid connection to deliver an aggregate capacity of 111 MWp. Both companies are examining these options to enhance the project's efficiency and profitability. Even without immediate pursuit of these pathways, the increased capacity could potentially lead to a higher overall valuation if the project is sold.
Positive
- Approval received for grid connection in Meltz, Germany
- 10% greater grid capacity allocation than initially anticipated
- Potential to increase project capacity by up to 10%
- Possibility to incorporate battery storage solutions
- Increased capacity may lead to higher overall project valuation
Negative
- None.
Insights
The news of additional grid capacity for N2OFF and Solterra's joint venture is moderately positive. The
From an investor's perspective, this development suggests upside potential for the project's valuation. The flexibility to either expand capacity or add storage capabilities positions the venture favorably in the evolving renewable energy landscape. Yet, it's important to note that further examination is needed to determine the most profitable route, indicating that immediate financial benefits may not materialize.
The
However, the choice between these options isn't straightforward. Expanding capacity might require minimal additional investment but could face diminishing returns. Battery storage, while promising for grid balancing and energy arbitrage, involves higher upfront costs and technological considerations. The optimal decision will depend on factors like local energy market dynamics, equipment costs and long-term strategy. This development underscores the project's adaptability to changing market conditions, a positive sign for its long-term viability.
The potential
The option to incorporate battery storage is particularly intriguing, as it addresses the intermittency challenge of solar power and could potentially unlock new revenue streams through grid services. However, investors should be cautious as the renewable energy sector is highly dynamic, with evolving technologies and regulations that could impact the project's long-term profitability. While the news is positive, the real value will be determined by how effectively N2OFF and Solterra capitalize on this opportunity amidst market competition and regulatory changes.
Solterra reported that, following a thorough review of the approval, the allocation is approximately
Neve Yarak, Israel, Sept. 11, 2024 (GLOBE NEWSWIRE) -- N2OFF, Inc.\ (NASDAQ: NITO) (FSE:80W) (“N2OFF” and the “Company”), a clean tech company engaged in sustainable solutions for energy and innovation for the agri- tech, released today an update regarding its Solar PV Joint Venture Project with Solterra Renewable Energy Ltd. (“Solterra”). Following receiving the required approval to connect to the power grid of a regional energy service provider in Meltz, Germany, Solterra sent the Company an additional report that indicates possible avenues to potentially increase the project’s value.
The current project design requires a grid connection of 97 MW to deliver an aggregate capacity of 111 MWp. The approved grid connection capacity exceeds such requirement by approximately
The Company and Solterra are currently examining both potential pathways in hopes of determining which could enhance the project's overall efficiency and profitability.
While further examination is required to assess the viability of these pathways and to determine which could be more profitable, we believe the increased capacity adds significant potential value to the project, even if these pathways are not immediately pursued. Such potential includes a higher overall valuation of the project in the event it is sold.
David Palach, N2OFF’s CEO, added "We are excited by the possible potential this additional grid capacity could provide. We are committed to exploring these options to increase the project value and will continue in our efforts to maximize this opportunity.”
About N2OFF Inc:
N2OFF, Inc. (formerly known as Save Foods, Inc.) is a clean tech company engaged in sustainable solutions for energy and innovation for the agri- tech. Through its operational activities it delivers integrated solutions for sustainable energy, greenhouse gas emissions reduction and safety, quality solutions for the agri- tech market. NTWO OFF Ltd., N2OFF's majority-owned Israeli subsidiary, aims to contribute in tackling greenhouse gas emissions, offering a pioneering solution to mitigate nitrous oxide (N2O) emissions, a potent greenhouse gas with 310 times the global warming impact of carbon dioxide. NTWO OFF Ltd., aims to promote agricultural practices that are both environmentally friendly and economically viable. N2OFF recently entered the solar PV market and will provide funding to Solterra Renewable Energy Ltd. for the current project in the total Capacity of 111 MWp, as well as potential future projects. Save Foods Ltd., N2OFF's majority-owned Israeli subsidiary, focuses on post-harvest treatments in fruit and vegetables to control and prevent pathogen contamination. N2OFF also has a minority ownership in Plantify Foods, Inc., a Canadian company listed on the TSXV that offers a wide range of clean-label healthy food options. For more information on Save Foods Ltd. and NTWO OFF Ltd. visit our website: www.n2off.com.
Forward-looking Statements:
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Because such statements deal with future events and are based on our current expectations, they are subject to various risks and uncertainties including the success of our collaboration with Solterra, entry into future projects, our ability to successfully enter the solar PV sector, the profitability of such industry, and the potential added value of the increased capacity. Actual results, performance or achievements could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including market conditions as well as those discussed under the heading “Risk Factors” in N2OFF’s Annual Report on Form 10-K filed with the SEC on April 1, 2024, and in any subsequent filings with the SEC. Except as otherwise required by law, we undertake no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. We are not responsible for the contents of third-party websites.
Investor Relations Contacts:
Michal Efraty
michal@efraty.com
FAQ
What is the current grid connection requirement for N2OFF and Solterra's Solar PV project?
How much additional grid capacity was approved for the NITO Solar PV project?
What are the two potential pathways N2OFF and Solterra are considering for the excess capacity?
Where is the N2OFF and Solterra Solar PV Joint Venture Project located?
