N2OFF dominates energy storage market with 70% ownership in Sicily projects

In Italy, N2OFF has executed a binding Letter of Intent (LOI) to develop two battery energy storage systems with a capacity of 98MWp/392MWh each, located in Sicily. This decision follows a non-binding term sheet executed by the two parties in late November 2024, which detailed the framework for the project purchase and development after positive due diligence results from Solterra Ltd. The total investment for these energy storage projects is expected to be up to €2.35 million, paid in milestones as the project progresses. The collaboration between N2OFF and Solterra Renewable Energy Ltd. reflects a significant step towards enhancing renewable energy adoption and energy storage solutions, as both companies aim to address the growing demand for improved grid flexibility. With an increasing number of renewable energy projects being developed, the necessity for storage solutions is becoming crucial in stabilizing energy grids. According to DNV's report on Energy Transition 2024, trends indicate a shift in focus for energy storage from mere frequency response management towards broader applications, including price arbitrage and capacity provision. Italy has also introduced the MACSE scheme, which is slated to conduct its first energy storage capacity auctions in the first half of 2025. This initiative aims to offer 15-year contracts to incentivize the development of storage projects, ultimately supporting Italy's renewable energy transition by ensuring grid stability and reliability. The development timeline for the N2OFF and Solterra projects is estimated at 18-24 months until they reach a Ready-to-Build stage. N2OFF is also venturing into the solar photovoltaic market, allocating funding for ongoing and potential future projects through a partnership with Solterra Renewable Energy Ltd. However, the company acknowledges that these forward-looking statements carry inherent risks and uncertainties, including market conditions, collaboration success, and industry profitability that could significantly impact the actual outcomes compared to expectations shared in communication.