Minrav, Nextcom to build Golan wind turbine farm

Wind farm Photo: Shutterstock

At full capacity, the project will produce enough electricity for a medium-sized city.

Minrav Holdings Ltd. (TASE: MNRV) and Nextcom Ltd. (TASE:NXTM) will build a wind turbine farm in the Golan Heights through a joint venture owned in equal shares.

The two companies today announced that the venture would include 30 3.2-megawatt wind turbines - a total capacity of 96 megawatts. The project was commissioned by Emek Habacha Wind Energy, owned by Enlight Renewable Energy Ltd. (TASE: ENLT) (60%) and AA Ben-Dov Wind Energy (40%).

The joint venture has also signed a contract to operate and maintain the project for 20 years after construction is completed. The total proceeds in the project are NIS 136 million plus VAT, while construction is slated to take 25 months from when the order to begin the work is received.

Nextcom, controlled by chairperson and CEO Guy Israeli, designs, constructs, and maintains communications and renewable energy infrastructure. Minrav, controlled by Avraham Kuznitsky, engages in infrastructure construction.

The project is the largest of its type in Israel in wind energy, and at full capacity can supply electricity to a medium-sized city. The project includes construction of a hybrid sub-station, laying 22,000 tons of concrete and 4,000 tons of iron, 15 kilometers of access roads, an electrical system to collect the energy produced, an operations and maintenance building, a communications system for remote monitoring and operation of the station, a connection to the electricity grid, and more.

Minrav also reported that it had won a Ministry of Defense tender to construct buildings and infrastructure on the Ramot campus in Beer Sheva. The two-year project will cost NIS 125 million plus VAT. It will include foundation, development, and construction work on seven buildings, including residences, training buildings, and an auditorium - a total of 15,000 square meters.

Nextcom's share price is up 7% today, completing a gain of over 50% over the past year. The company's market cap has reached NIS 70 million. Minrav's share price remained steady, reflecting a NIS 430 million market cap, following a 20% drop over the past year.

Nextcom last week reported that its revenue totaled NIS 70 million in the first quarter of 2018, 33% more than in the first quarter of last year. The company made a NIS 2.4 million net profit in the quarter, compared with NIS 122,000 in the first quarter of 2017.

Israeli said today, "According to figures from the Public Utilities Authority (electricity), renewable energy product currently accounts for only 2.6% of total energy, while the government's targets for electricity production from renewable sources in 2020 are 10% in 2020 and 17% in 2030. We therefore expect energy projects to be an important growth engine for Nextcom in the coming years."

Minrav said, "The deals are projected to contribute in the short-to-medium term to the revenue and profits of the company's construction sector. We are constantly considering new deals and are currently taking part in a number of additional tenders. If we win these, it will make a strong contribution to the company's business and profits."

Published by Globes [online], Israel business news - www.globes-online.com - on May 27, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Wind farm Photo: Shutterstock
Wind farm Photo: Shutterstock
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