Idan Ofer Sells Distributed Energy Assets to Aluma Energy for $73 Million

Aluma Energy Fund has signed an agreement to acquire the entirety of OPC Distributed, a subsidiary of OPC Energy, controlled by billionaire Idan Ofer, for a total of NIS 272 million (approximately $73 million). This acquisition is a significant step in Aluma's strategy to expand its energy sector operations and establish Alumenergy as a major player in Israel's distributed energy market.

The acquired assets include 12 natural gas-powered distributed electricity generation facilities totaling approximately 52.5 megawatts, along with solar rooftop installations of about 3 megawatts. The fund estimates these operations will generate annual revenues of NIS 100 million and EBITDA of NIS 33 million in a full year of operation. The deal also encompasses six energy storage projects with a capacity of 39 megawatts and 195 megawatt-hours, which have received positive grid connection approvals. Aluma projects these storage facilities will yield annual revenues of NIS 20 million and EBITDA of NIS 15 million by 2028.

These newly acquired facilities serve industrial, food, and health sector clients through long-term agreements. Alumenergy plans to further develop these assets by completing ongoing construction, expanding the storage portfolio, exploring cogeneration upgrades, and leveraging synergies with its existing natural gas, electricity trading, and supply operations. The acquisition will be financed through Alumenergy's own resources and potentially additional capital or debt from the Aluma Fund. The fund is also seeking financial partners, including Discount Capital, to support Alumenergy's growth.

Yair Hirsch, CEO of Aluma Energy Fund, stated that the acquisition significantly expands Alumenergy's distributed generation capacity and adds a high-quality industrial customer base. Amit Pergment, CEO of Alumenergy, highlighted that the deal enhances their cogeneration capabilities, accelerates development in the energy storage market, and expands their electricity trading activities, creating strong synergies across Alumenergy's core businesses. Giora Almogi, CEO of OPC Energy, noted that the sale aligns with OPC's strategic focus on developing new natural gas power plants in Israel and the US, enhancing its financial flexibility for significant investment plans.