Ashtrom Renewable Energy Launches Landmark Solar Initiative

Ashtrom Renewable Energy Launches Landmark Solar Initiative

Ashtrom Renewable Energy has officially commenced operations of the Tierra Bonita solar project, marking a significant milestone in the company's commitment to sustainable energy. This project is indicative of the innovative strides that Ashtrom Renewable Energy is making in renewable sources of power.

Details of the Tierra Bonita Solar Project

Located in a vast area, the Tierra Bonita project spans around 2,200 acres and boasts an impressive capacity of 306 MWac. This output is expected to supply electricity sufficient for the annual consumption of approximately 75,000 households. Remarkably, the project will contribute to reducing carbon dioxide emissions by an estimated 500,000 tons per year, which showcases its impact on the environment.

Investment and Financial Insights

The total cost to establish the Tierra Bonita solar project amounted to $435 million, with Ashtrom investing $165 million in equity. This investment reflects the company’s focus on not only expanding its renewable energy footprint but also on making a positive impact on the environment through sustainable practices.

Leadership Commentary

Yitsik Mermelstein, CEO of Ashtrom Renewable Energy, expressed his enthusiasm over the milestone, stating, "We are thrilled to announce the early commencement of commercial operations for the Tierra Bonita solar project, a key achievement for Ashtrom Renewable Energy. This accomplishment highlights our capability to deliver high-quality renewable energy projects and demonstrates our dedication to sustainable growth within a short span of just three years. By utilizing creative approaches like the sale and transfer of production tax credits, we maximize both financial and environmental outcomes of our projects."

Strategic Partnerships and Power Purchase Agreements

To ensure the financial viability and impact of its operations, Ashtrom Renewable Energy has secured a 20-year Power Purchase Agreement (PPA) with CPS Energy, which is the nation’s largest municipally-owned electric and gas utility company. Through this agreement, Ashtrom will deliver 60% of the electricity generated, equating to 180 MWac, thus reinforcing its position as a reliable electricity supplier.

Innovative Financial Strategies

In a groundbreaking move, Ashtrom Renewable Energy entered into a unique agreement under the Inflation Reduction Act, allowing the sale and transfer of project tax credits to a reputable American institutional organization rated Aa3 by Moody’s. This deal is structured to deliver $300 million across a decade, further enhancing the project's financial framework and sustainability goals.

Geographic Reach and Project Portfolio

Ashtrom Renewable Energy has an extensive operational scope, particularly in the U.S. and Israel, with the Tierra Bonita project being one of six significant projects developed in the United States alone. Collectively, these projects have a capacity of around 1,800 MW, showcasing the company's robust expansion in renewable energy. Additional ventures include an 11% stake in a 257 MW wind energy project situated in Poland.

Company Overview

Ashtrom Renewable Energy is dedicated to scaling clean energy solutions globally while remaining headquartered in both Israel and Austin, Texas. The company is renowned for its excellence in developing renewable energy projects across diverse geographies. By employing a hands-on and risk-informed approach, the team focuses on strategic execution, underscoring its status as an independent power producer with comprehensive expertise in the energy sector.

About Ashtrom Group

Ashtrom Group is recognized as one of the leading construction and real estate companies in Israel, with a strong presence in various sectors. The group is involved in infrastructure contracting, residential housing, commercial real estate, manufacturing, and renewable energy projects both locally and internationally. Under the leadership of Mr. Avraham Nussbaum and Mr. Gil Gueron, Ashtrom continues to expand and innovate, maintaining a legacy of excellence spanning 60 years.

Frequently Asked Questions

What is the capacity of the Tierra Bonita solar project?

The Tierra Bonita solar project has a capacity of 306 MWac, which can supply power for approximately 75,000 households.

How much CO2 emissions does the project aim to reduce?

The project is expected to reduce carbon dioxide emissions by about 500,000 tons annually.

Who is the CEO of Ashtrom Renewable Energy?

The CEO is Yitsik Mermelstein, who emphasizes the company's commitment to renewable energy.

What is the significance of the Power Purchase Agreement with CPS Energy?

The PPA allows Ashtrom to sell 60% of the electricity generated for 20 years, securing financial viability for the project.

What other renewable projects does Ashtrom Renewable Energy have?

Aside from Tierra Bonita, Ashtrom Renewable Energy manages several projects in the U.S. totaling around 1,800 MW, as well as wind energy projects in Poland.

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