Brings Total Owned Capacity to 50MW – Double That of Last Year – and Increases Contracted Annual Recurring Revenues to $7.3 Million
NEW YORK, NY, Dec. 30, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – Alternus Energy Inc. (OTC: ALTN) (the “Company”, “Alternus” or “ALTN”), a global renewable energy company, is pleased to announce the acquisition of Zonepark Rilland B.V. and its 11.75 MW ground-mounted solar photovoltaic (PV) power plant in Rilland, the Netherlands, from Coöperatie Unisun Energy U.A. for €10.5 million (approximately $11.8 million).
Rilland becomes ALTN’s largest individual operational Solar PV park and enjoys a 15-year government counterparty ‘Feed-in-Tariff’ (“FiT”) contract at fixed sales prices, in addition to a Power Purchase Agreement (“PPA”) with a local energy operator. The combined contracts provide long-term predictable positive cash flows to Alternus and as the park is already operational it will be immediately revenue and income accretive to Alternus. Based on current energy production Rilland is expected to add approximately $1.4 million in annual revenues for at least 15 years at average 75% gross margins.
The acquisition of the Rilland park brings group contracted recurring revenues from operational parks to over $5.7 million annually, over twice the revenues set to be recorded for 2019. Once all currently owned projects become operational, annual recurring revenues are expected to be over $7.3 million from existing assets.
Vincent Browne, Alternus Energy’s Chief Executive Officer, President and Chairman, commented, “We are very pleased and excited to have completed this milestone acquisition that we originally announced during the summer. This transaction marks a significant milestone and inflection point for our Company as we successfully expand into the Netherlands, the fourth European country we now have energy generation operations in, and also shows our ability to execute on acquisitions of larger parks as we continue to expand our European footprint. This park has been fully operational since January 2019 and has been producing results in excess of expectations since that time. We are currently well-positioned for future expansion in the Netherlands as we are continue our partnership with Unisun and other local developers there.”
“2020 looks set to be a transformative year for Alternus as we enter the new year with an additional 108MWs currently contracted for acquisition, in addition to the 50MWs already owned, and with over 700MWs of development and operational projects in the pipeline. We have proven our project origination abilities at competitive market prices, but equally important we have also developed key relationships with local banks and with leading European and international institutional funding partners during 2019. All of which points to a strong year in 2020 for further park additions and long term income growth, with a continuing focus on maximizing benefits to our shareholders.”
The Rilland park purchase price, which may change as a result of a working capital adjustment and earn-out of up to €0.5 million depending on the future performance, includes assumption of a third-party senior bank debt facility in the amount of approximately €7.2 million (approximately $8.1 million). Alternus funded €1.85 million (approximately $2.1 million) of the purchase price through the issuance of a €2.15 million bond issued to a leading European Renewable Energy Fund. Additionally, ALTN issued a €1.7 million (approximately $1.87 million) loan to Unisun which is due by January 31, 2020.
About Alternus Energy Inc.
Alternus Energy is a global independent power producer (“IPP”). We develop, own and operate solar PV parks that connect directly to national power grids. Current revenue streams are generated from long-term, government-mandated, fixed price supply contracts with terms of between 15-20 years in the form of government Feed-In-Tariffs (“FiT”) and other energy incentives. Current contracts deliver annual revenues, of which approximately 75% are generated from these sources with the remaining 25% deriving from revenues generated under contracted Power Purchase Agreements (“PPA”) with other energy operators and by sales to the general energy market in the countries we operate. In general, these contracts generate an average sales rate for every kWh of green energy produced by our solar parks. Our current focus is on the European solar PV market. However, we are also actively exploring opportunities in other countries outside of Europe.
For further information please go to: www.AlternusEnergy.com
Forward-Looking Statement
This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," “potential” and similar statements. All statements other than statements of historical fact in this press release are forward-looking statements and involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements are based on management's current expectations, assumptions, estimates, and projections about the Company and the industry in which the Company operates, but involve a number of unknown risks and uncertainties. Further information regarding these and other risks is included in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.
Contact:
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