Shares of Israel-based renewable energy firm Ellomay Capital got a jolt today after the firm released details of the development plans for photovoltaic projects in Italy with aggregate capacity of 265 megawatts.
Renewable energy and power generator and developer of renewable energy and power projects in Europe and Israel Ellomay Capital Ltd. (ELLO:NYSE.AMEX) yesterday announced "the execution of a Framework Agreement between its wholly-owned subsidiary, Ellomay Luxembourg Holdings S.àr.l. and an established and experienced European developer."
The company advised that "pursuant to the Framework Agreement, the Developer will provide Ellomay Luxembourg with development services with respect to photovoltaic greenfield projects in Italy in the scope of 350 MW with the aim of reaching an aggregate 'ready to build' authorized capacity of at least 265 MW over a 41-month period." The firm noted that Ellomay Luxembourg also has the option to purchase approximately 37 MW that are already under development by the developer, of which 30 MW have already been approved to connect to the Italian electricity grid.
Ellomay's CEO Ran Fridrich commented, "The Framework Agreement executed by the Company is another tier in the Company's plan to increase its portfolio of photovoltaic facilities that are based on [grid] parity. Today the Company's projects under development are in an aggregate scope of approximately 550 MW and the Company intends to increase the scope shortly to approximately 1,000 MW that are expected to be built over the coming three years. The Company's deep knowledge and extensive experience in constructing and operation photovoltaic facilities in Italy and Spain enable it to cooperate with experienced and reputable developers."
The company indicated that it has evaluated numerous opportunities and invested significant funds in the renewable, clean energy and natural resources industries in Israel, Italy and Spain, which include 7.9MW of photovoltaic power plants in Spain and a photovoltaic power plant of approximately 9 MW in Israel.
Ellomay Capital is headquartered in Tel Aviv, Israel, and is involved in the business of energy and infrastructure. The bulk of the company's operations are involved primarily with production of renewable and clean energy. The firm stated in the release that it is controlled by Shlomo Nehama, one of Israel's prominent businessmen and the former chairman of Israel's leading bank, Bank Hapohalim, and Hemi Raphael and Ran Fridrich, who both have experience in financial and industrial businesses. The company claims it has extensive experience in managing and recognizing suitable business opportunities worldwide and the ability to take on significant and complex transactions.
Ellomay Capital has a market cap of about $148.1 million with around 10.14 million outstanding shares. ELLO shares opened more than 20% higher today at $17.79 (+$3.19, +21.85%) compared to the prior trading day's closing price of $14.60. The stock set a new 52-week high price in early trading of $18.28/share. The shares have traded today between $17.02 and $18.28 per share and are presently trading at $17.05 (+$2.45, +16.78%).
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