Ellomay Capital Ltd, a renewable energy and power generator and developer of renewable energy and power projects in Europe and Israel, announced that Talasol Solar S.L.U., its indirect wholly-owned subsidiary ("Talasol") entered into a set of agreements governing the procurement of financing in the aggregate amount of approximately euro 177 million (the "Project Finance"). The Project Finance is intended to finance the construction of a photovoltaic plant with a peak capacity of 300 MW in the municipality of Talaván, Cáceres, Spain (the "Talasol Project") promoted by Talasol. Fichtner, Talasol's owner engineer, currently expects that the Talasol photovoltaic plant will generate approximately 561 GWh of electricity a year. For more information see the IDTechEx report on Distributed Generation: Minigrid Microgrid Zero Emission 2018-2038.
The Project Finance consists of several facilities from Deutsche Bank AG and from the European Investment Bank ("EIB") under the Investment Plan for Europe known as the Juncker Plan. For more information concerning the Project Finance, see a Form 6-K furnished by the Company to the Securities and Exchange Commission on December 20, 2018.
The consummation of the Project Finance is subject to the occurrence of certain events and circumstances, including the fulfilment of the conditions to closing, that are not entirely within the control of the Company or Talasol. There can be no assurance as to whether or when the conditions to closing will be satisfied.
In its publication concerning the Project Finance, EIB noted that: "The municipality of Talaván in Cáceres will be home to one of Spain's largest solar photovoltaic power plants, and one of the first in the country to be financed outside renewable energy auctions. The European Investment Bank (EIB) is financing this project with a EUR 70m Juncker Plan loan with the aim of helping to combat climate change. When it starts operating in 2020, this new plant will prevent the release of 263,000 tonnes of CO2 into the atmosphere a year by generating electricity using solar energy."
Ran Fridrich, CEO and a board member of Ellomay commented: "The execution of the financing agreement is a significant accomplishment and one of the final and major steps forward in the Talasol Project. The Company is very pleased with the progress achieved so far in line with the planned schedule. Talasol is a pivotal project for Ellomay as it is bound to serve as a model for our continued growth in developing, constructing and operating solar projects in Europe and Israel."
Ori Rosenzweig, chief investment officer at Ellomay Capital, said, "The fact that two major banks, Deutsche Bank and EIB, are financing the project testifies for its significant success potential. I believe we have obtained the optimal financing terms required for the project that will set a new standard for the future solar power production in Spain and Europe. This is a good opportunity to thank our friends in DB, whom had a major positive contribution to the success of the project in general, and specifically in reaching the positive results of the financing agreement. Talasol couldn't reach this important milestone, without the positive support throughout the process from the Spanish government, local government and the municipality of Talavan."
EIB Vice-President Emma Navarro said: "This project will help to increase electricity generation using solar energy, which is important for meeting European renewable energy goals in Spain, as well as for promoting sustainable growth and cutting carbon emissions. We are delighted to announce our support for this project just few days after the climate change conference held in Katowice, a great opportunity to show the world that the EIB is committed to the Paris Agreement and combating climate change. We will continue working to mobilize financing for climate action projects and to ensure that all of our activities are fully in line with the Paris objectives in 2020."
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 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 and Spain, including:
- Approximately 22.6MW of photovoltaic power plants in Italy, approximately 7.9MW 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 850 MW, representing about 6%-8% of Israel's total current electricity consumption;
- 75% of Chashgal Elyon Ltd., Agira Sheuva Electra, L.P. and Ellomay Pumped Storage (2014) Ltd., all of which are involved in a project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel;
- 51% of Groen Gas Goor B.V. and of Groen Gas Oude-Tonge B.V., project companies operating or developing anaerobic digestion plants with a green gas production capacity of approximately 375 Nm3/h, in Goor, the Netherlands and 475 Nm3/h, in Oude Tonge, the Netherlands, respectively.
Ellomay Capital is controlled by Mr. Shlomo Nehama, Mr. Hemi Raphael and Mr. Ran Fridrich. Mr. Nehama is one of Israel's prominent businessmen and the former Chairman of Israel's leading bank, Bank Hapohalim, and Messrs. Raphael and Fridrich both have vast experience in financial and industrial businesses. These controlling shareholders, along with Ellomay's dedicated professional management, accumulated extensive experience in recognizing suitable business opportunities worldwide. Ellomay believes the expertise of Ellomay's controlling shareholders and management enables the Company to access the capital markets, as well as assemble global institutional investors and other potential partners. As a result, we believe Ellomay is capable of considering significant and complex transactions, beyond its immediate financial resources.
For more information about Ellomay, visit http://www.ellomay.com.
Source and top image: Ellomay Capital Ltd