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Ownership option granted for up to 10% of potential 150MW
TORONTO and KNOXVILLE, Tenn., March 09, 2021 (GLOBE NEWSWIRE) -- Solar Alliance Energy Inc. (‘Solar Alliance’) or (the ‘Company’) (TSX-V: SOLR) is pleased to announce it has signed a Solar Design Agreement (“Design Agreement”) with Green Data Center Real Estate Inc. (“Green Data”) to commence design and detailed feasibility analysis on an initial 56-megawatt (“MW”), US $60 million ground and roof mount solar project (the “Project”) at a hyperscale data center in Illinois. The Agreement details a phased approach to Project development in order to assess the potential of increasing the project size. It is anticipated the data center will have sufficient electricity demand to support a solar project up to 150 MW. Under the Agreement, Solar Alliance and Green Data will determine the feasibility of a larger second phase of the Project while simultaneously advancing detailed design work on the initial 56 MW phase. Final costs for both phases will be determined and negotiated as part of a final construction agreement and Notice to Proceed.
Under the terms of the Agreement, Green Data has granted Solar Alliance the option to provide equity to acquire up to 10% of the entire project. In consideration for the ownership option on the entire project, Solar Alliance will take on additional project development responsibilities including certain interconnection assessment activities, project finance participation and community engagement.
Under the terms of the Design Agreement, Solar Alliance and Green Data will also:
Determine potential to expand system size based on site constraints.
Determine potential phasing of solar project construction based on data center power demand and data center construction schedule; and
Agree a financial model that illustrates project economics and provides the basis for a decision on Solar Alliance equity participation in the project.
“This project represents a natural expansion for Solar Alliance into large project development and ownership,” said Solar Alliance CEO Myke Clark. “As we continue to design and build solar systems for residential builders and commercial clients, we are also excited to begin project development work on larger utility-scale systems. These projects take investment and time to pursue, but the return on investment through ownership potential is significant. The 56-megawatt project - with expansion potential up to 150-megawatts - in Illinois is a prime example of the type of new project we will be pursuing this year in addition to growing our commercial solar pipeline. Green Data is at the leading edge of an exciting, fast growing industry that Solar Alliance is proud to be a part of.”
“Solar Alliance has added value at every step of this project’s development, and we are pleased to sign this Solar Design Agreement and continue making progress.” said Green Data COO Sean Stofer. “This is a complex project which requires deep power sector expertise and having Solar Alliance as a potential project owner only increases our confidence in the success of this endeavor. We look forward to completing the next stage of this project and exploring other data center opportunities with the Solar Alliance team.”
The design work for the solar system is being completed in tandem with the final design work for the data center. The final project size and capital cost will be determined as part of the design process and a final construction agreement will be negotiated in advance of Notice to Proceed. Advancement of the project is dependent on the design and engineering targets and the final approval of Green Data.
This Agreement replaces the Letter of Intent signed with Green Data and announced on January 4, 2021.
This is the second data center solar project Solar Alliance is pursuing with Green Data. On October 28, 2020 the Company signed a Design Agreement to commence design work on a 4.57-megawatt (“MW”) ground and roof mount solar project at a 10 MW hyperscale data center in Murphysboro, Illinois owned by Green Data Center Real Estate Inc. The design work for the solar system is continuing and is being completed in tandem with the final design work for the data center. Illinois has increased its attractiveness for data center development with new state level incentives and now ranks 4th in the world for data center suitability, as reported by Cushman Wakefield. Recent data center announcements in Illinois include Facebook’s $800M project in DeKalb, IL which increases the need for renewable energy substantially.
Myke Clark, CEO
About Solar Alliance Energy Inc. (www.solaralliance.com)
Solar Alliance is an energy solutions provider focused on residential, commercial and industrial solar installations. The Company operates in Tennessee, North/South Carolina, Kentucky and California and has an expanding pipeline of solar projects. Since it was founded in 2003, the Company has developed $1 billion of wind and solar projects that provide enough electricity to power 150,000 homes. Our passion is improving life through ingenuity, simplicity and freedom of choice. Solar Alliance reduces or eliminates customers' vulnerability to rising energy costs, offers an environmentally-friendly source of electricity generation, and provides affordable, turnkey clean energy solutions.
Statements in this news release, other than purely historical information, including statements relating to the ability to develop and design the Illinois project which satisfies the specifications of Green Data, and the Company's future plans and objectives or expected results, constitute Forward-looking statements. The words “would”, “will”, “expected” and “estimated” or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different than those expressed or implied by such forward-looking information. Such factors include, but are not limited to: the inability to develop and design the Illinois project which satisfies the specifications of Green Data; uncertainties related to the ability to raise sufficient capital; changes in economic conditions or financial markets; litigation; legislative or other judicial, regulatory and political competitive developments; technological or operational difficulties; market demand; electricity pricing; regulatory policy; supplier risk; installation risk; competitor risk; safety risk; customer service risk; fraud and cyber risks; as well as the ability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restriction on labour and international travel and supply chains; and those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
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