Nofar Secures €86.5M for German Battery Project

• Nofar Energy secures EUR 86.5M loan for its first German battery project, marking a significant step in its European renewable energy expansion.

Israeli renewables developer Nofar Energy Ltd has secured a EUR 86.5 million loan from commercial bank Nord/LB to fund a 104.5-MW/209-MWh battery energy storage project in Germany. This project, located in Saxony-Anhalt, marks Nofar's first venture in the country and is expected to be fully operational by early 2026. The financing agreement follows a fixed-price tolling deal Nofar signed in December with a major global energy corporation for the battery.

Nofar Energy boasts an energy storage portfolio of 10 GWh across eight countries. Over the past two years, the company has secured approximately ILS 4 billion in financing agreements for various projects throughout Europe, underscoring its expanding footprint in the renewable energy sector.

How Will Nofar Energy's First German Project Impact Its Global Renewable Energy Portfolio?

• Diversification of Portfolio: Nofar Energy's entry into the German market with its first project in Saxony-Anhalt represents a strategic diversification of its global portfolio. By expanding into Germany, a country known for its strong commitment to renewable energy, Nofar can mitigate risks associated with market concentration and tap into new revenue streams.
• Strengthening European Presence: This project enhances Nofar's presence in Europe, a region with ambitious renewable energy targets. The successful execution of this project could pave the way for further opportunities in Germany and neighboring countries, solidifying Nofar's position as a key player in the European renewable energy market.
• Technological Advancement: The 104.5-MW/209-MWh battery energy storage project showcases Nofar's commitment to integrating advanced energy storage solutions. This project could serve as a model for future developments, highlighting the company's capability to deliver large-scale, technologically sophisticated projects.
• Financial Growth and Stability: Securing an EUR 86.5 million loan from Nord/LB not only demonstrates financial confidence in Nofar's projects but also contributes to the company's financial growth and stability. This financial backing can enhance Nofar's ability to undertake additional projects and investments globally.
• Strategic Partnerships: The fixed-price tolling deal with a major global energy corporation underscores Nofar's ability to forge strategic partnerships. Such collaborations can provide Nofar with valuable insights, resources, and market access, further strengthening its global operations.
• Contribution to Energy Transition: By investing in battery energy storage, Nofar is contributing to the broader energy transition by enabling greater integration of renewable energy sources into the grid. This project supports Germany's energy transition goals and sets a precedent for similar initiatives worldwide.
• Reputation and Brand Recognition: Successfully entering and executing a project in Germany can enhance Nofar's reputation and brand recognition on a global scale. This can lead to increased trust and interest from investors, partners, and stakeholders in future projects.
• Long-term Strategic Vision: This project aligns with Nofar's long-term strategic vision of expanding its renewable energy footprint across multiple geographies. It reflects the company's proactive approach to identifying and capitalizing on emerging opportunities in the global renewable energy landscape.