Sources inform ''Globes'' that that RWE AG (XETRA: RWE) of Germany, Europe's fourth largest energy company, may bid in the $650 million tender to build and operate the solar power plant in the Negev. Company representatives visited Israel last week and met with executives of HFCI Ltd., which is heading one of the consortia in the tender.
HFCI is headed by CEO Alon Bar and Oil Refineries chairman Ohad Marani. The company's consortium includes Germany's Solar Millennium AG (XETRA: S2M), one of the world's top three solar energy companies, and Israeli real estate developer and contractor Minrav Holdings Ltd. (TASE: MNRV).
RWE produces, transports, and supplies electricity and gas to 20 million customers in Germany. It has a market cap of $68 billion and posted a net profit of $3.64 billion on $56 billion revenue in 2007. It has 63,500 employees.
If RWE signs a cooperation agreement with HFCI, this will be its first venture in Israel. RWE would strengthen HFCI's financial wherewithal as well as providing the experience in the construction and operation of power stations, which HFCI will need to participate in the tender.
Two months ago, the Ministry of Finance published an international tender for the financing, construction, operation, and maintenance of two solar energy plants of 80-125 megawatts each. The tender has attracted a number of leading companies in the industry, including Israel's Solel Solar Systems Ltd., Luz II Ltd., and Israel Corp. (TASE: ILCO) subsidiary IC Green Ltd., as well as Turkey's SunPower Inc. IDB Holding Corp. Ltd. (TASE:IDBH) unit Clal Industries and Investments Ltd. (TASE: CII) and Spain's Abengoa Bioenergy SA (IBEX:ABG) have submitted a joint bid.
Published by Globes [online], Israel business news - www.globes-online.com - on June 18, 2008
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