N2OFF Secures Funding for German Solar Project

• Israel's N2OFF Inc dives into renewable energy, funding a €8 million solar initiative in Germany, partnering with Solterra Renewable Energy to enhance sustainability and growth.

Israel-based agri-food tech firm N2OFF Inc (NASDAQ:NITO) is entering the solar market by providing a loan for a 111-MWp solar project in Germany, as part of a partnership with Solterra Renewable Energy Ltd. The announcement came at the end of July, with N2OFF and private investors committing to finance up to EUR 8 million (USD 8.89 million) to support solar initiatives developed by Solterra, starting with a project in Melz.

The funding includes an initial EUR 2.08 million loan that will help advance the project towards ready-to-build (RTB) status, with additional financing tied to milestone achievements. Once RTB is reached, Solterra plans to sell the project, while N2OFF's group retains the right to further investment opportunities of up to EUR 6 million. Solterra, established in 2022, targets renewable energy projects primarily in Italy, Poland, and Germany, managing around 300 MW of capacity across various stages of development.

How is N2OFF's financing impacting solar project development in Germany?

How N2OFF's Financing is Impacting Solar Project Development in Germany

• Catalyzing Development: N2OFF's financial commitment is instrumental in accelerating the development of solar projects, enabling initiatives that might otherwise face delays due to funding shortages.
• Fostering Partnerships: By partnering with Solterra Renewable Energy Ltd., N2OFF strengthens collaborative efforts in the renewable energy sector. This partnership exemplifies how international companies can aid local developers, bringing foreign investment into the German solar market.
• Increasing Project Viability: The initial loan of EUR 2.08 million is crucial for advancing the Melz solar project to a ready-to-build (RTB) status, making it more appealing for future investors and buyers.
• Flexible Financing Structure: The financing model linked to milestone achievements allows for a tailored approach, ensuring that funds are allocated based on the project’s progress. This not only mitigates risk but also incentivizes project management.
• Long-term Investment Potential**: N2OFF's option to invest an additional EUR 6 million upon reaching RTB signals a commitment to long-term engagement in the German solar market, enhancing confidence among other investors.
• Support for Local Industry**: By investing in Germany's renewable sector, N2OFF supports the local economy, creates jobs, and contributes to the country’s goal of increasing renewable energy capacity.
• Enhancing Energy Security: The influx of financing aids in diversifying Germany's energy sources, which is vital for reducing reliance on fossil fuels and enhancing energy security.
• Stimulating Competitive Pricing: Increased investment in solar projects can lead to more competitive energy pricing, which is beneficial for consumers and businesses alike, potentially lowering electricity costs in the long run.
• Contributing to Climate Goals: Increased solar capacity aligns with Germany's climate objectives, helping the country meet its targets for CO2 reductions and promoting a sustainable energy future.
• Model for Future Investments: N2OFF's approach could serve as a benchmark for future renewable energy investments in Europe, encouraging other financiers to explore opportunities in the sector.
• Strengthening Regulatory Support: N2OFF's backing could encourage regulatory bodies to further facilitate the development of solar projects, streamlining processes and possibly leading to improved policies and incentives for developers.

This multifaceted impact of N2OFF’s financing illustrates how strategic investments can not only bolster individual projects but also contribute to the broader renewable energy landscape in Germany.