TEL AVIV, Israel, January 24, 2018 /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 and Israel, today announced its wholly owned
Spanish subsidiary, Talasol Solar S.L. ("Talasol
"), executed a binding term sheet with a leading international
energy company with an investment grade credit rating operating in
more than 40 countries (the "Hedging Provider") in relation
to a power financial hedge of 3,500-3,700 GWh for 10 years
("PPA") in connection with a prospective photovoltaic plant
with a peak capacity of approximately 300 MW in the municipality of
Talaván, Cáceres, Spain (the
"Talasol Project ").
The power produced by the Talasol Project is expected to be sold
by Talasol to the open market for the then current market power
price. The PPA is expected to hedge the risks associated with
fluctuating electricity market prices by allowing Talasol to secure
a certain level of income for the power production included under
the PPA. The hedging provides that if the market price goes below a
price underpinned by the PPA, the Hedging Provider will pay Talasol
the difference between the market price and the underpinned price,
and if the market price is above the underpinned price, Talasol
will pay the Hedging Provider the difference between the market
price and the underpinned price. The hedged production under the
PPA is currently expected to be 3,500 - 3,700 GWh during a fixed
term of 10 years, commencing shortly after commercial operation of
the Talasol Project commences.
Since Ellomay purchased Talasol in April
2017, the Talasol Project secured its Administrative
Authorization and Declaration of Public Utility in June 2017. In addition, Talasol recently executed
the Assignment Contract ("contrato de encargo de proyecto") and the
Technical Access Contract ("Contracto técnico de acceso a la red de
transporte") with Red Eléctrica de España [the Spanish grid
operator ("REE")], both required for the Talasol Project's
connection to the Spanish national grid.
In addition, during November 2017
Talasol launched a tender process for the selection of the EPC
contractor of the Project (the "EPC Tender"). Talasol is
aiming to achieve financial closing for the Talasol Project during
the second or third quarter of 2018 and commence commercial
operation on 2020.
Based on current technical analysis, the P50 expected production
of the Talasol Project will be approximately 490-565 GWh per annum,
depending on the final design of the Talasol Project, which will be
determined by the EPC Tender.
Talasol is expecting that the Talasol Project's CAPEX will
amount to approximately Euro 200
million, including development costs of approximately
Euro 20 million and interest of
approximately Euro 7 million.
Based on the current technical analysis, a price projection
analysis and the expected hedging effect of the PPA as reflected in
the Binding Term Sheet, the Talasol Project's revenues are
currently expected to be in the range of Euro 20-25 million per annum.
Ran Fridrich, CEO and director of the Company noted "The
execution of the financial hedge is an important milestone for our
Talasol project, and perhaps also for the entire Spanish PV and
renewable energy market. We think that we found a sophisticated and
creative counterparty, and we are moving ahead in full force to
negotiate with them the detailed agreement. We hope that the
competitive process we had in choosing the right off-taker, and the
extensive and detailed negotiations on the terms of the conditions
of the binding term sheet will assist us in finalizing the
agreement relatively quickly."
The continued development of the Talasol Project is
subject to risks and uncertainties, including with respect to
the occurrence of the conditions subsequent set forth
in the Talasol share purchase agreement, and other conditions that
are not entirely within the control of the Company or
Talasol, as they include the issuance of regulatory approvals
and the procurement of project financing on terms acceptable to
Talasol. The projected production, revenues
and other future results and outcomes included herein are
based on the current expectations and assumptions of the Company
and its advisors and are subject to various conditions and
circumstances, including the actual execution and
final terms of the PPA, the outcome of
the EPC Tender, the negotiations
and final terms of the O&M contract and
several other agreements, some of which have not yet
been negotiated, finalized and executed. Moreover, the
Company may, in its sole discretion, decide not to
pursue the Talasol Project in the event of changes in the market or
other circumstances. For more information concerning these
and other risks see below under "Information Relating to
Forward-Looking Statements."
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 9MW 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 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.
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," "aim,"
"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 weather
conditions, regulatory changes, changes in Spain or other relevant electricity markets,
increase in the cost of construction and operation of PV plants,
changes in demand and technical and other disruptions in the
operations or construction of the Talasol Project. 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