N2OFF and Solterra Announce the Closing of a Definitive Agreement to Develop 196 MWp Battery Storage Projects in Italy

Rhea-AI Summary

N2OFF (NASDAQ: NITO) has announced the closing of a definitive agreement with Solterra Renewable Energy's Italian subsidiary for the development of two Battery Storage (BESS) systems in Sicily, Italy. Each system will have a capacity of 98MWp/392MWh, totaling 196MWp.

The agreement involves a total investment of up to €2.3 million, to be paid in milestones, with N2OFF holding a 70% ownership stake. These projects are part of N2OFF's broader joint venture with Solterra, focusing on solar and energy storage initiatives. The projects have received connection capacity approval from Terna SpA and are expected to reach Ready-to-Build stage within 18-24 months.

This development aligns with Italy's MACSE scheme, which plans to conduct its first energy storage capacity auctions in H1 2025, offering 15-year contracts. Currently, N2OFF is committed to investing up to €4.4 million in projects across Germany and Italy for a total capacity exceeding 300 MW.

Positive

• Secured 70% ownership in two large-scale BESS projects totaling 196MWp in Italy
• Projects already received grid connection approval from Terna SpA
• Potential revenue opportunity through Italy's upcoming MACSE 15-year contract auctions
• Strategic expansion into European energy storage market

Negative

• Significant development timeline of 18-24 months before reaching Ready-to-Build stage
• Additional capital investment of €2.3 million required for project development

CURRENTLY N2OFF IS COMMITTED TO invest up to €4.4 million in projects located in Germany and Italy for total capacity of over 300 MW

Neve Yarak, Israel, Feb. 24, 2025 (GLOBE NEWSWIRE) -- N2OFF, Inc.\ (NASDAQ: NITO) (FSE:80W) (“N2OFF” and the “Company”), a clean tech company engaged in sustainable solutions for energy and innovation for agri- tech, announced today the closing of a definitive agreement with Solterra Renewable Energy Ltd’s subsidiary, Soltera Brand Services Italy , a company that specializes in the origination and development of renewable energy projects in Italy According to the agreement, the purchased projects relate to 2 Battery Storage ("BESS") systems in Sicily, Italy, each with a capacity of 98MWp/392MWh.

The agreement includes the purchase and development of the projects, with a total investment of up to €2.3 million, to be paid in milestones. N2OFF will hold 70% ownership in the projects, further solidifying its entry into the European energy storage market.

These projects are part of the broader joint venture between N2OFF and Solterra Renewable Energy Ltd., which focuses on solar and energy storage initiatives. The collaboration reflects the companies 'shared vision of advancing renewable energy adoption and addressing the increasing demand for energy storage solutions to enhance grid flexibility.

As more renewable projects are coming online, the storage market is in demand and is crucial for grid flexibility. According to DNV (https://www.dnv.com/) a global leading consultancy firm,in their report on Energy Transition 2024, "as storage capacity surpasses 0.5% of grid capacity, the focus is transitioning from frequency-response management to broader applications such as price arbitrage or capacity provision, which increases the demand for longer term storage projects". Italy has recently introduced the MACSE scheme. MACSE currently plans to conduct its first energy storage capacity auctions in the first half of 2025, offering 15-year contracts to incentivize the development of storage projects. This mechanism is designed to support Italy's transition to renewable energy by ensuring grid stability and reliability.

The current 2 BESS projects have already received approval for the connection capacity from Terna SpA (the Italian transmission company), which will be secured simultaneously with the closing of the transaction. The development is currently expected to take 18-24 months for these projects to reach a Ready-to-Build stage.

About N2OFF Inc:

N2OFF, Inc. (formerly known as Save Foods, Inc.) is a clean tech company engaged in sustainable solutions for energy and innovation for agri- tech. Through its operational activities it delivers integrated solutions for sustainable energy, greenhouse gas emissions reduction and safety, quality solutions for the agri- tech market. NTWO OFF Ltd., N2OFF's majority-owned Israeli subsidiary, aims to contribute in tackling greenhouse gas emissions, offering a pioneering solution to mitigate nitrous oxide (N₂O) emissions, a potent greenhouse gas with 310 times the global warming impact of carbon dioxide. NTWO OFF Ltd., aims to promote agricultural practices that are both environmentally friendly and economically viable. N2OFF recently entered the solar PV market and will provide funding to Solterra Renewable Energy Ltd. for the current project in the total Capacity of 111 MWp, as well as potential future projects. Save Foods Ltd., N2OFF's majority-owned Israeli subsidiary, focuses on post-harvest treatments in fruit and vegetables to control and prevent pathogen contamination.. For more information on Save Foods Ltd. and NTWO OFF Ltd. visit our website: www.n2off.com.

Forward-looking Statements:

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Because such statements deal with future events and are based on our current expectations, they are subject to various risks and uncertainties including the success of our collaboration with Solterra, entry into future projects, our ability to successfully enter the solar PV sector, the profitability of such industry, and the potential added value of the increased capacity. Actual results, performance or achievements could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including market conditions as well as those discussed under the heading “Risk Factors” in N2OFF’s Annual Report on Form 10-K filed with the SEC on April 1, 2024, and in any subsequent filings with the SEC. Except as otherwise required by law, we undertake no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. We are not responsible for the contents of third-party websites.

Investor Relations Contact:
Michal Efraty
michal@efraty.com

FAQ

What is the total capacity of N2OFF's (NITO) new battery storage projects in Sicily?

The two Battery Storage systems in Sicily will have a total capacity of 196MWp/784MWh, with each system having 98MWp/392MWh capacity.

How much is N2OFF (NITO) investing in the Sicily battery storage projects?

N2OFF is investing up to €2.3 million in the Sicily battery storage projects, to be paid in milestones.

What ownership percentage does N2OFF (NITO) have in the Sicily battery projects?

N2OFF holds 70% ownership in the Sicily battery storage projects.

When will N2OFF's (NITO) Sicily battery storage projects be ready to build?

The projects are expected to reach Ready-to-Build stage within 18-24 months from the announcement date.

How does Italy's MACSE scheme benefit N2OFF's (NITO) battery storage projects?

The MACSE scheme will conduct energy storage capacity auctions in H1 2025, offering 15-year contracts that could provide long-term revenue opportunities for N2OFF's projects.