This year, the Ashtrom Group established a new branch of activity in the field of renewable energy, under the management of Itzik Mermelstein, and last weekend it reported on the first investment in the field of renewable energy in the United States | Together with a partner, the company has signed agreements for the development of 4 solar projects with a volume of approximately 1,100 megawatts and an estimated cost of approximately $ 1.1 billion | This week, the transaction for the acquisition of holdings in a wind project in Poland amounting to 257 megawatts was also completed.
Aaron Payne 14.11.2021
The Ashtrom Group reported last weekend on further progress in its renewable energy operations in the United States. The company updates that it has signed, together with Canlov Renewable Energy Ltd., an agreement with an entrepreneurial company, which specializes in initiating solar projects in the US, to initiate and establish exclusively solar projects in the US. When any project that is developed by the developer will be offered to companies exclusively and they will have the right to accept or reject the investment in the project. The Ashtrom Group coordinates its activities in the field through its subsidiary, Ashtrom Renewable Energy, under the management of Itzik Mermelstein.
Simultaneously with the signing of the investment agreement, the acquisition of four projects that are in various stages of development with a cumulative volume of approximately 1,100 megawatts (MWdc) was completed. Most of the projects (about 900 megawatts are located in the state of Texas) The estimated investment in the construction of the said projects is a total of about $ 1.1 billion.
According to the developer, the first project in the first set of projects is expected to reach a stage of readiness for construction and financial closure at the end of 2022 or the beginning of 2023, subject to the completion of the various development stages and securing the financing required to start construction.
With the acquisition of the first four projects, the projects were added to the backlog of projects in the company’s development (as its relative share in holdings in these projects).
Rami Nussbaum, Chairman of the Board of Directors of the Ashtrom Group, said upon publication: “The signing of the agreements for joint investment in renewable energy in the United States, along with the agreement to purchase the first four projects in this market, are a first step for the Ashtrom Group in this market. The renewable energy market in the US currently enjoys rapid growth processes and regulation that supports the transition to renewable energies. This trend is also explicitly supported by the Biden administration’s policy of reducing carbon emissions by 50% by 2030.
The entry into the US is part of the process of implementing a comprehensive strategy for the group’s entry into the field of renewable energy around the world, when this week the deal to acquire 257 megawatts of wind projects in Poland was completed.
The Ashtrom Group brings with it extensive experience in the fields of entrepreneurship, management and construction of projects around the world, and the current deal integrates well with these proven capabilities. We see in the field of renewable energy activity an additional and synergistic growth engine for the Group’s existing activity in Israel and abroad, and continue to examine additional transactions in this field. ”