First U.S. renewable energy project for Ashtrom Group will supply 400 MWdc (306 MWac) and reduce CO2 emissions by 500,000 tons annually
60% of the generated electricity is sold to CPS Energy, the nation’s largest municipally-owned electric and gas utility under 20-year Power Purchase Agreement
AUSTIN, Texas–(BUSINESS WIRE)–Ashtrom Renewable Energy, a global independent power producer and renewable energy developer and subsidiary of Ashtrom Group, today announced the Tierra Bonita solar project is officially operational, marking a significant milestone for Ashtrom Group’s renewable energy operations. The project obtained the required approvals for commercial operation, earlier than the contracted date.
The Tierra Bonita Project is a solar project in Pecos County, in west Texas, covering around 2,200 acres with a 306 MWac capacity. The project will produce electricity equivalent to the annual consumption for about 75,000 households and is expected to reduce CO2 emissions by 500,000 tons per year. Tierra Bonita was established at a total cost of $435M, of which the company invested $165M in equity.
“We are thrilled to announce the early commencement of commercial operations for the Tierra Bonita solar project, a key milestone for Ashtrom Renewable Energy,” said Yitsik Mermelstein, CEO of Ashtrom Renewable Energy. “This achievement not only underscores our ability to deliver utility-scale renewable energy projects, but also reflects our commitment to sustainable growth within just three years of establishing the company. Through innovative agreements like the sale and transfer of production tax credits under the Inflation Reduction Act, we are further maximizing the project’s financial and environmental impact.”
Ashtrom Renewable Energy has secured the sale of 60% of the generated electricity (180 MW ac) by signing a 20-year-Power Purchase Agreement (PPA) with CPS Energy. CPS Energy was established in 1860 and is the nation’s largest municipally-owned electric and gas utility. The remaining electricity generated by the project will be sold by Ashtrom Renewable Energy on the free market. In addition, Ashtrom Renewable Energy signed a first-of-its-kind agreement under Inflation Reduction Act (IRA) legislation for the transfer and sale of project tax credits to a Moody’s Aa3 rated American institutional entity in consideration of $300M over a period of 10 years.
Ashtrom Renewable Energy operates in several geographical markets, focusing on the U.S. and Israel. The Tierra Bonita project is one of six projects held by the company in the U.S. The projects total approximately 1,800 MW. In addition to its U.S. holdings, Ashtrom Renewable Energy holds 11% of a 257MW wind energy project in Poland.
About Ashtrom Renewable Energy
Ashtrom Renewable Energy is delivering clean energy at scale. Headquartered in Israel and Austin, we build best-in-class renewable energy projects in the United States and around the globe. With a hands-on, risk-informed approach that emphasizes strategic and cost-effective execution, the company is an independent power producer (IPP) led by a team of energy experts with decades of experience in solar and wind siting, development, construction, financing, and operation. Ashtrom Renewable Energy leverages the financial stability and culture of excellence cultivated by Ashtrom Group (TASE: ASHG), a leading infrastructure, construction, and real estate development company with a 60-year legacy of success. With a development pipeline of ~1.8 GWdc in the U.S. and ~2.5 GWdc worldwide, Ashtrom Renewable Energy is poised to rapidly scale its development and investment activities in the U.S. market for the long term. Learn more about Ashtrom Renewable Energy at https://www.ashtrom.co.il/renewable-energy
About Ashtrom Group
Ashtrom is one of Israel’s leading construction and real estate companies whose shares are traded on the Tel Aviv Stock Exchange 125 index. The group operates in several operating sectors: Construction and infrastructure contracting in Israel – including, inter alia, residential and infrastructural contract constructions; Concessions – participation in tenders and executing planning, operations and financing activities for large-scale infrastructure and residential projects; Housing entrepreneurship in Israel, through Ashdar, a subsidiary that is a leader and among the oldest companies in the field; Investment and entrepreneurial real estate, through Ashtrom Properties, a subsidiary operating in Israel, Germany and UK, holding and managing shopping malls and commercial centers, office buildings and employment centers, industrial structures and more; Industries – mainly manufacturing, marketing and selling raw materials to the construction industry and importing and marketing finishing products for the construction industry; Construction and infrastructures contracting abroad, as well as residential real estate development in the U.S. and Europe – performed by Ashtrom International; Renewable energy – investment in wind, solar, storage and other energy related projects in Israel and worldwide. Ashtrom Group chairperson is Mr. Avraham Nussbaum, and the group’s CEO is Mr. Gil Gueron.
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