Ellomay Capital Ltd. (Bulletin Board: EMYCF) has expanded its turn-key deal with an Italian contractor for two photovoltaic plants in the Marche Region along the Adriatic Sea. The plants will cost €5.6 million altogether, plus €150,000 in related expenses.
Ellomay is controlled by former Bank Hapoalim chairman Shlomo Nehama.
Ellomay signed additional engineering procurement and construction (EPC) contracts for the design, supply, construction, assembly and commissioning of two 750-kilowatt facilities. In March, Ellomay signed similar contracts for two photovoltaic facilities in the Marche Region. When completed, the plants sell electricity to the national utility, Gestore dei Servizi Elettrici SpA (GSE). The contractor will operate the plants for an annual fee.
Ellomay plans to finance most of the investment in the photovoltaic plants with financing from a financial institution.
Ellomay says that Italy is one of the best markets for photovoltaic plants, after passing a law subsidizing the tariff for 20 years.
Ellomay's share closed at $0.55 in New York yesterday.
Published by Globes [online], Israel business news - www.globes-online.com - on June 24, 2010
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