Israel Corp to build Negev thermosolar energy plant

The company will invest $260 million to build the 60-megawatt facility at Mashabei Sadeh.

Israel Corporation (TASE: ILCO) will buy 90% of the venture that will build a thermosolar energy plant at Kibbutz Mashabei Sadeh in the Negev. The 60-megawatt plant will cost $260 million to build.

The rights to the Mashabei Sadeh venture are held by Kibbutz Mashabei Sadeh, Two Sigma Investments LLC of the US, and Kugler Development & Investment Ltd., owned by former Ministry of Energy and Water Resources director general Hezi Kugler, who will continue to manage the project. Israel Corp. will acquire the project through its wholly-owned subsidiary IC Green Ltd., run by CEO Yom Tov Samia. Israel Corp. will pay the project's developers up to $1 million to cover part of the development costs until the financial closing of the project, and before the equity investment as part of the closing.

Acquisition of the Mashabei Sadeh project puts Israel Corp. in direct competition with Shikun & Binui Holdings Ltd. (TASE: SKBN), which is planning to build a 120-megawatt thermosolar energy project at Kibbutz Zeelim nearby.

The Mashabei Sadeh project will use parabolic receptors, based on know-how of Siemens Solar Thermal Energy, formerly Solel Solar Systems, which has greatly reduced its activity. Sources inform ''Globes'' that the projects developers are seeking a contractor to replace Siemens.

Under the current timetable, the Mashabei Sadeh plant will be ready by late 2015, assuming financial closing by the first quarter of 2013 and the start of construction next summer. The project is now in the final planning stages for deposit for public objections with the National Infrastructures Committee.

Published by Globes [online], Israel business news - - on November 21, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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