Ellomay Capital Announces Execution of An Agreement for the Sale of Tax Credits of Texas Solar Projects
23 September 2024 - 10:15PM
Ellomay Capital Ltd.
(NYSE American; TASE: ELLO) (“Ellomay” or the
“Company”), a renewable energy and power generator and
developer of renewable energy and power projects in Europe, Israel
and the USA, today announced a key achievement in its U.S.
strategic growth plan. The Company has successfully entered into an
agreement for the sale and transfer of Investment Tax Credits
(ITCs) linked to its Fairfield (13.4 MW), Malakoff (13.92 MW),
Mexia (11.1 MW), and Talco (10.5 MW) solar projects, all located in
the State of Texas, USA. The agreement was executed with a
reputable financial institution, with vast experience in executing
tax credit transactions.
Through this transaction, the Company expects to
receive approximately $19 million from the sale of Investment Tax
Credits, representing approximately 32% of the expected total
portfolio costs. The sale is facilitated under the Inflation
Reduction Act’s new transferability provisions, allowing Ellomay to
retain 100% of the operating profits from these projects. Funds
from the sale of the ITCs generated from a project will be
disbursed after such project is placed in service and meets the
applicable requirements. The Company expects the Fairfield and
Malakoff projects to be placed in service by the end of Q4 2024,
and the Mexia and Talco projects to be placed in service by the end
of Q2 2025. The agreement includes customary indemnification
obligations (for damages not covered by tax insurance policy),
including in connection with certain continued eligibility
requirements and scope of the ITCs, for which the Company provided
a guarantee to the purchaser of the ITCs.
Ran Fridrich, CEO and a board member of Ellomay,
said “The agreement to sell the Investment Tax Credits to an
institutional buyer represents a major milestone in the development
of Ellomay’s solar portfolio in Texas and underscores the Company’s
commitment to expanding its renewable energy presence in the U.S.
The Company sees great importance in its ability to sell the ITCs
while maintaining the benefits of accelerated depreciation in the
Company. The Company believes that additional projects in the
pipeline will be able to follow a similar strategy.”
About Ellomay Capital Ltd.
Ellomay is an Israeli based company whose shares
are listed on the NYSE American and 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, USA 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,
Spain, the Netherlands and Texas, USA, including:
- Approximately 335.9 MW of
operating photovoltaic power plants in Spain (including a 300 MW
photovoltaic plant in owned by Talasol, which is 51% owned by the
Company) and approximately 20 MW of operating photovoltaic power
plants in Italy;
- 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
850MW, representing about 6%-8% of Israel’s total current
electricity consumption;
- Groen Gas Goor B.V., Groen Gas
Oude-Tonge B.V. and Groen Gas Gelderland B.V., project companies
operating anaerobic digestion plants in the Netherlands, with
a green gas production capacity of approximately 3 million, 3.8
million and 9.5 million Nm3 per year, respectively;
- 83.333% of Ellomay Pumped Storage
(2014) Ltd., which is involved in a project to construct a 156 MW
pumped storage hydro power plant in the Manara Cliff, Israel;
- Ellomay Solar Italy Ten SRL that is
construction a photovoltaic plant (18 MW) in Italy;
- Ellomay Solar Italy Four SRL (15.06
MW), Ellomay Solar Italy Five SRL (87.2 MW), Ellomay Solar Italy
Seven SRL (54.77 MW), Ellomay Solar Italy Nine SRL (8 MW) and
Ellomay Solar Italy Fifteen SRL (10 MW) that are developing
photovoltaic projects in Italy that have reached “ready to build”
status; and
- Fairfield Solar Project, LLC (13.44
MW), Malakoff Solar I, LLC (6.96 MW) and Malakoff Solar II, LLC
(6.96 MW), that are constructing photovoltaic plants and Mexia
Solar I, LLC (5.6 MW), Mexia Solar II, LLC (5.6 MW), and Talco
Solar, LLC (10.3 MW), that are developing photovoltaic projects
that have reached “ready to build” status, all in the Dallas
Metropolitan area, Texas.
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
the Company’s forward-looking statements, including the delays or
failure in placing into service of any or all of the Texas solar
facilities, failure to meet the continued eligibility requirements
for the ITCs, changes in the markets and economy, changes in
electricity prices and demand, continued war and hostilities in
Israel and Gaza, regulatory changes, including extension of current
or approval of new rules and regulations increasing the operating
expenses of manufacturers of renewable energy in Spain, increases
in interest rates and inflation, changes in the supply and prices
of resources required for the operation of the Company’s facilities
(such as waste and natural gas) and in the price of oil, the impact
of continued military conflict between Russia and Ukraine,
technical and other disruptions in the operations or construction
of the power plants owned by the Company and general market,
political and economic conditions in the countries in which the
Company operates, including Israel, Spain, Italy and the United
States. 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 Rubenbach (Weintraub)CFO
Tel: +972 (3) 797-1111 Email: hilai@ellomay.com
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