Israel-based agri-food tech company N2OFF Inc (NASDAQ:NITO) announced its entrance into the solar market with the provision of a loan for the development of a 111MWp project as part of a broader partnership agreement with Solterra Renewable Energy Ltd.
The deal was announced at the end of July as part of a plan for N2OFF and a number of private investors to loan up to EUR 8 million (USD 8.89m) of solar projects developed by Solterra.
The first project within the partnership will be built in the municipality of Melz. The project has been cleared by the municipality and has already attracted interest from a large regional energy service provider in the country for a potential grid connection.
N2OFF and the private investors will lend EUR 2.08 million to support Solterra in advancing the project towards a ready-to-build (RTB) status. The group plans to loan up to EUR 2.2 million for the project, upon certain milestones achievement, which will give them up to 50% of the rights to the net earnings.
After the RTB status is achieved, Solterra intends to sell the project.
The N2OFF-led group will have a right of refusal for additional project investments of up to EUR 6 million.
Solterra was founded in 2022 to initiate and develop renewable energy projects. The company is active in three primary target markets -- Italy, Poland and Germany. It manages a portfolio of schemes at various stages of development with a total cumulative capacity of about 300 MW.
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