Stark Power Secures $85 Million Credit Line for US Energy Project Acquisition

Israeli energy company Stark Power, founded by former executives from Enlight and Nofar Energy, is in advanced negotiations to acquire full ownership of two U.S. energy projects. The deal involves a 250-300 megawatt natural gas power plant and an 80-megawatt battery energy storage project currently in late-stage development. The acquisition price is approximately $27.5 million upon closing, with an additional $15.5 million in contingent consideration.

Stark Power anticipates these projects will generate an annual EBITDA of $30-33 million, primarily through 15-year tolling agreements with credit-rated entities. This model is designed to provide stable cash flow, insulating the company from natural gas price fluctuations. The company highlighted the region's high regulatory barriers and increasing electricity demand, partly driven by the expansion of data centers in the United States.

Concurrently, Stark Power is in discussions with an Israeli banking corporation to secure credit facilities and guarantees totaling $85 million. These funds will support the acquisition and future company initiatives. The company's founders previously held senior positions at Enlight and Nofar Energy, two prominent players in Israel's renewable energy sector.