TEL-AVIV, Israel, May 4, 2017 /PRNewswire/ --
Ellomay Capital Ltd. (NYSE MKT:
ELLO; TASE: ELLO) ("Ellomay" or the
"Company"), an emerging operator in the
renewable energy and energy infrastructure sector, today announced
the closing of its second investment in a Waste-to-Energy facility
in The Netherlands pursuant to an
agreement between Ellomay Luxemburg Holdings S.àr.l., the Company's
wholly-owned subsidiary ("Ellomay Luxemburg") and Ludan
Energy Overseas B.V. ("Ludan") (an indirectly wholly-owned
subsidiary of Ludan Engineering Co. Ltd. (TASE: LUDN)).
Ellomay Luxemburg was issued 51% of the outstanding shares of
the project company, Groen Gas Oude-Tonge B.V. ("Oude
Tonge"), which is in the process of developing an anaerobic
digestion plant, with a green gas production capacity of
approximately 475 Nm3/h, in Oude Tonge, the Netherlands (the "Oude Tonge
Project"). Subject to certain conditions, including the
availability and price of the feedstock required to operate the
facility, Oude Tonge currently expects that the Oude Tonge Project
will produce biogas for the
Netherlands grid of approximately 3.8 million m3
per year and will produce annual revenues of approximately
Euro 3.4 million, which will be
derived mainly from the subsidies granted for the sale of biogas to
the grid.
On May 3, 2017, Oude Tonge entered
into a loan agreement with Coöperatieve Rabobank U.A. ("Rabobank"),
whereby Rabobank agreed to provide the following financing tranches
to Oude Tonge: (i) two loans with principal amounts of Euro 3.15 million and Euro
1.7 million, each with a fixed annual interest rate of 3.1%
for the first five years, for a period of 12.25 years, repayable in
equal monthly installments commencing three months following the
connection of the Oude Tonge Project's facility to the grid and
(ii) an on-call credit facility of Euro
100,000 with variable interest. The Company expects that
financial closing under the agreement with Rabobank will occur
after registration of the securities required by Rabobank in
connection with the loan.
The Oude Tonge Project executed an engineering, procurement and
construction agreement with an affiliate of Ludan and is expected
to enter into an operation and maintenance agreement with an
affiliate of Ludan, both based on terms already agreed to by us and
Ludan. It is estimated that the duration of the construction of the
Oude Tonge Project shall be approximately one year and the expected
overall capital expenditure in connection with the Oude Tonge
Project are approximately Euro 8.5
million (approximately $9.3
million), including the financing mentioned above.
With respect to the first project executed with Ludan located in
Goor, the Netherlands, the
relevant project company currently expects that, subject to certain
conditions, including the availability and price of the feedstock
required to operate the facility, the project will produce
approximately 3 million m3 biogas for the gas grid and
approximately 5,600 MWh for the electricity grid per year and will
produce annual revenues of approximately Euro 3.5 million, which will be derived mainly
from subsidies received for the sale of biogas and electricity to
the grid.
Ran Fridrich, CEO and director of Ellomay, commented: "The
execution of the loan agreement of the Oude Tonge Project is an
important milestone for Ellomay, and the joint venture with our
partners, Ludan Engineering. After closing the first joint venture
project in Goor last December, which is now under construction, we
are proud to reach another project finance agreement with the Oude
Tonge project. We aim to act fast in Dutch biogas market, in order
to maximize its potential before it becomes mature. The Dutch
renewable energy market is expected to grow rapidly over the next
years and Ellomay aims to become part of its success."
About Ellomay Capital Ltd.
Ellomay is an Israeli based company whose shares are registered
with the NYSE MKT, under the trading symbol "ELLO" and with the Tel
Aviv Stock Exchange under the trading symbol "ELOM." Since 2009,
Ellomay Capital focuses its business in the energy and
infrastructure sectors worldwide. Ellomay (formerly Nur
Macroprinters Ltd.) previously was a supplier of wide format and
super-wide format digital printing systems and related products
worldwide, and sold this business to Hewlett-Packard Company during
2008 for more than $100 million.
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 and approximately 7.9MW
of photovoltaic power plants in Spain;
- 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 340 MW pumped storage hydro power plant in
the Manara Cliff, Israel;
- 51% of Groen Gas Goor B.V., a project company developing an
anaerobic digestion plant, with a green gas production capacity of
approximately 375 Nm3/h, in Goor, the
Netherlands.
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.
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
our forward-looking statements, such as regulatory changes
(prospective or retroactive), changes in demand, technical and
other disruptions in the construction and operation of the project
and changes in the availability and prices of feedstock. 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 Weintraub
CFO
Tel: +972-(3)-797-1111
Email: miria@ellomay.com
SOURCE Ellomay Capital Ltd