Nofar Energy Acquires 400 MWh US Storage Project for $40 Million

Nofar Energy is set to acquire a 400 megawatt-hour energy storage project in development in the United States for $40 million. The company will obtain ownership of a 24-dunam industrially zoned site, which already has an approved site plan for the storage project and a valid grid connection agreement. The project is expected to sign a 15-year revenue guarantee contract and qualify for a tax credit ranging from 40% to 50%. Nofar anticipates the project will be ready for construction in the coming quarter, with building commencing next year and commercial operation targeted by the end of 2028.

The company projects net revenues exceeding $300 million over 15 years, with an EBITDA of $36 to $38 million in the first operational year. Construction costs are estimated between $220 million and $230 million, with tax benefits around $100 million. Nofar expects to invest approximately $60 million in equity capital for the project. As of the end of March, Nofar held a portfolio in the US of about 800 megawatts of connected and ready-to-build projects, alongside roughly 500 megawatts under construction or nearing construction, and 1.9 gigawatts in development.

Additionally, in late February, Nofar completed the acquisition of nine solar projects totaling 1 gigawatt for $285 million, with Bank Hapoalim financing $255 million of the deal.