N2OFF, INC. Entered into an Agreement to Fund up to € 8 million for 50% Rights in Several Solar PV Projects to be Developed by Solterra Renewable Energy Ltd.
N2OFF, Inc. (NASDAQ: NITO) has entered into an agreement with Solterra Renewable Energy to fund up to €8 million for solar PV projects. The first project, located in Melz, Germany, has a capacity of 111 MWp and will receive €2.08 million in funding. The project has obtained municipal approval and an indicative solution for grid connection.
N2OFF and private investors will provide loans based on milestones, with 7% annual interest, gaining up to 50% rights to net earnings. The company aims to create a reliable revenue stream in the growing solar energy sector. Solterra plans to develop and sell the project at Ready-to-Build status, capitalizing on high market demand for such projects.
N2OFF, Inc. (NASDAQ: NITO) ha stipulato un accordo con Solterra Renewable Energy per finanziare fino a 8 milioni di euro per progetti di energia solare fotovoltaica. Il primo progetto, situato a Melz, Germania, ha una capacità di 111 MWp e riceverà un finanziamento di 2,08 milioni di euro. Il progetto ha ottenuto l'approvazione municipale e una soluzione indicativa per la connessione alla rete.
N2OFF e investitori privati forniranno prestiti basati su obiettivi, con un interesse annuale del 7%, ottenendo fino al 50% dei diritti sugli utili netti. L'azienda mira a creare un flusso di entrate affidabile nel settore in crescita dell'energia solare. Solterra prevede di sviluppare e vendere il progetto in stato di Pronto per essere Costruito, capitalizzando sulla forte domanda di mercato per tali progetti.
N2OFF, Inc. (NASDAQ: NITO) ha firmado un acuerdo con Solterra Renewable Energy para financiar hasta 8 millones de euros para proyectos de energía solar fotovoltaica. El primer proyecto, ubicado en Melz, Alemania, tiene una capacidad de 111 MWp y recibirá 2,08 millones de euros en financiamiento. El proyecto ha obtenido la aprobación municipal y una solución indicativa para la conexión a la red.
N2OFF y los inversores privados proporcionarán préstamos basados en hitos, con un interés anual del 7%, obteniendo hasta el 50% de los derechos sobre las ganancias netas. La empresa tiene como objetivo crear un flujo de ingresos confiable en el creciente sector de la energía solar. Solterra planea desarrollar y vender el proyecto en estado de Listo para Construir, capitalizando la alta demanda del mercado para tales proyectos.
N2OFF, Inc. (NASDAQ: NITO)는 Solterra Renewable Energy와 최대 800만 유로의 태양광 프로젝트 자금을 지원하기 위한 계약을 체결했습니다. 첫 번째 프로젝트는 독일 멜츠에 위치하며, 용량은 111 MWp로 208만 유로의 자금을 지원받게 됩니다. 이 프로젝트는 지방 정부의 승인을 받았으며, 전력망 연결을 위한 예비 해결책도 확보했습니다.
N2OFF와 개인 투자자들은 이정표에 따라 대출을 제공하며, 연 7%의 이자를 부과하고, 순이익의 최대 50%에 대한 권리를 얻습니다. 이 회사는 성장하는 태양 에너지 부문에서 신뢰할 수 있는 수익원을 창출하는 것을 목표로 합니다. Solterra는 시장의 높은 수요를 활용하여 이 프로젝트를 완료 직전 단계로 개발하고 판매할 계획입니다.
N2OFF, Inc. (NASDAQ: NITO) a conclu un accord avec Solterra Renewable Energy pour financer jusqu'à 8 millions d'euros pour des projets photovoltaïques solaires. Le premier projet, situé à Melz, Allemagne, a une capacité de 111 MWc et recevra 2,08 millions d'euros de financement. Le projet a obtenu l'approbation municipale et une solution indicative pour le raccordement au réseau.
N2OFF et des investisseurs privés fourniront des prêts basés sur des étapes, avec un intérêt annuel de 7 %, obtenant jusqu'à 50 % des droits sur les bénéfices nets. L'entreprise vise à créer un flux de revenus fiable dans le secteur en pleine croissance de l'énergie solaire. Solterra prévoit de développer et de vendre le projet au statut Prêt à Construire, capitalisant sur la forte demande du marché pour de tels projets.
N2OFF, Inc. (NASDAQ: NITO) hat eine Vereinbarung mit Solterra Renewable Energy getroffen, um bis zu 8 Millionen Euro für Solar-Photovoltaik-Projekte zu finanzieren. Das erste Projekt, das in Melz, Deutschland liegt, hat eine Leistung von 111 MWp und erhält 2,08 Millionen Euro an Finanzierung. Das Projekt hat die kommunale Genehmigung erhalten und es gibt eine indikative Lösung für den Netzanschluss.
N2OFF und private Investoren werden Kredite basierend auf Fortschritten bereitstellen, mit einem jährlichen Zinssatz von 7 %, und erwerben bis zu 50 % der Rechte an den Nettoerträgen. Das Unternehmen hat das Ziel, einen zuverlässigen Einnahmestrom im wachsenden Solarsektor zu schaffen. Solterra plant, das Projekt im Status „Bereit zum Bauen“ zu entwickeln und zu verkaufen und so von der hohen Marktnachfrage nach solchen Projekten zu profitieren.
- Entry into the solar energy sector with a 111 MWp project in Germany
- Potential for reliable revenue stream from carefully selected projects
- Up to 50% rights to net earnings from funded projects
- Right of first refusal for future project investments up to €6 million
- Partnership with experienced renewable energy company Solterra
- Significant capital investment required (up to €8 million) with returns dependent on project success
- Exposure to risks associated with the renewable energy sector and project development
Insights
As a financial analyst, I find this news impactful for N2OFF, Inc. and potentially for investors. The company's entry into the solar energy sector through a strategic partnership with Solterra Renewable Energy represents a significant diversification of its business model. Here are the key financial implications:
- Investment Scale: N2OFF and private investors are committing up to
€8 million for solar PV projects, with€2.08 million allocated to the first 111 MWp project in Melz, Germany. - Revenue Potential: The agreement grants N2OFF and investors up to
50% of the net earnings from these projects, potentially creating a substantial new revenue stream. - Market Opportunity: The global solar PV market is projected to grow from
$150 billion in 2022 to$383.78 billion by 2032, with a CAGR of9.90% . This suggests a robust long-term market for N2OFF's new venture. - Risk Mitigation: The loan structure, based on accomplished milestones and accruing
7% annual interest, provides some downside protection for N2OFF and its co-investors.
While this move could diversify N2OFF's revenue streams and tap into a growing market, investors should consider the execution risks associated with entering a new sector. The company's ability to select profitable projects and navigate the complexities of the solar energy market will be important for realizing the potential value of this investment.
From a renewable energy perspective, N2OFF's entry into the solar PV market is a strategic move that aligns with global trends towards clean energy adoption. The 111 MWp project in Melz, Germany, is particularly noteworthy for several reasons:
- Scale: At 111 MWp, this is a substantial utility-scale solar project that could power tens of thousands of homes.
- Location: Germany is a mature market for solar energy with a supportive regulatory environment, which bodes well for project success.
- Development Stage: The project has already secured municipal approval and an indicative grid connection solution, reducing some key development risks.
- Market Demand: The strategy to develop projects to Ready-to-Build (RTB) status capitalizes on high demand from investors for de-risked renewable energy assets.
However, challenges remain. Grid integration for large-scale solar projects can be complex and the success of the Melz project will depend on finalizing the grid connection agreement. Additionally, while Germany's solar market is well-established, it's also competitive, which could impact project margins.
The partnership with Solterra, leveraging their expertise in project development across multiple European markets, is a prudent approach for N2OFF as it enters this new sector. The diversified portfolio of 300 MW in various stages of development provides a pipeline for future growth, but careful project selection and execution will be critical for success in this venture.
N2OFF's strategic move into the solar PV market through this partnership with Solterra is a significant development that warrants attention from investors. Here's a market-focused analysis of the key points:
- Market Growth: The projected CAGR of
9.90% for the global solar PV market indicates strong growth potential, supporting N2OFF's decision to enter this sector. - Geographic Diversification: By targeting projects in Germany, Italy and Poland, N2OFF is positioning itself in diverse European markets with varying levels of solar PV maturity and potential.
- Project Pipeline: The 300 MW portfolio under development provides a solid foundation for future growth, assuming successful execution.
- Competitive Landscape: The solar PV sector is becoming increasingly competitive, which could pressure margins. N2OFF's success will depend on Solterra's ability to identify and develop high-value projects.
- Investor Appetite: The strategy to develop projects to RTB status aligns with current market demand, potentially allowing for quicker monetization of investments.
From a market perspective, this move positions N2OFF to capitalize on the growing demand for renewable energy solutions. However, investors should monitor the company's ability to execute on this new strategy and its impact on the overall business mix. The success of the Melz project could serve as a proof of concept for N2OFF's solar ambitions and influence investor sentiment towards future projects in this sector.
First PV project in a capacity of 111 MW, received a municipal approval as well as an indicative solution for grid connection by a large regional energy service provider in Germany
Neve Yarak, Israel, July 31, 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, announced today that together with a number of private investors (the “Investors”), it entered into an agreement with Solterra Renewable Energy Ltd. (“Solterra”), to fund up to
Yair Harel, Solterra’s CEO, commented, “Our goal is to fully develop the Melz project and sell it at Ready-to-Build (RTB) status. We see high demand in today’s markets for RTB projects from multiple types of investors. Our cooperation with N2OFF will allow us to bring multiple projects to fruition, extracting substantial value from these projects for the benefit of both companies’ investors.”
David Palach, N2OFF’s CEO, added “We are pleased to announce our entry in the solar energy sector with our first project. Our goal is to create a reliable revenue stream by financing projects carefully selected by the Solterra team, our experts in the field. Based on recent market trends, we expect the global demand for alternative energy solutions to continue growing annually, as awareness of the need to create environmentally friendly solutions to help preserve our planet increases. We believe this to be a contributing factor to the attractive profit margins in this sector. Subject to the right of first refusal granted to us, we look forward to analyzing and investing in future projects.”
The project has been approved by the municipality of Melz and additionally received attention for a potential grid connection by a large regional energy service provider in Germany.
Solterra was founded in 2022 by Eran Litvak and Yair Harel, in the field of renewable energy. Each of the founders is a veteran in the energy sector, with a track record of dozens of successful projects. In addition, both founders are experienced entrepreneurs and managers with over 20 years of proven experience in identifying business opportunities, enhancing projects, and maximizing value in both the energy and financial sectors.
Solterra is currently active in three primary target markets: Italy, Poland, and Germany, managing a portfolio of at various stages of Solar PV development with a total cumulative capacity of approximately 300 megawatts. According to Precedence Research, the global solar PV market was estimated at
Pursuant to the Agreement, N2OFF and the Investors will finance the project up to an aggregate of
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 for the current project in the total Capacity of 111 MWp, as well as 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 and the profitability of such industry. 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 capacity of N2OFF's first solar PV project in Germany?
How much funding has N2OFF agreed to provide for the Melz project?
What is the interest rate on the loan provided by N2OFF for the solar projects?
What percentage of rights to net earnings will N2OFF receive from the funded projects?
What is the projected growth rate of the global solar PV market according to the press release?
