JOINT STATEMENT: DXT Commodities, KGAL and ORI Martin finalize corporate long tem PPA on a new 50 MW solar plant
DXT Commodities S.A. (DXT), KGAL Investment Management GmbH & Co. KG (KGAL) and O.R.I. Martin S.p.A. (ORI Martin) announce the structuring of a 5 year power purchase agreement (PPA) and the related corporate PPA, the largest in 2019 of its kind in Italy, involving the electric output of a photovoltaic plant to be built in Sardinia, Italy.
The new 53 MW solar farm is the first unsubsidized renewable investment by KGAL in Italy and it has just started construction, with commercial operation expected in the second half of 2020. The entire electricity (approx. 95 GWh/year) injected into the grid by such asset will be purchased by DXT who
will manage it and remunerate it at a fixed price for 5 years ensuring a steady cash flow to KGAL. On the consumption side ORI Martin will purchase the renewable energy and use it to power its steel mill.
On the deal Oliver Ciancio (DXT Commodities) declared: “This is the second corporate PPA closed by DXT in 2019. We are proud to be leading the way on long term contracts and play a central role in the development of renewables in Italy. Bringing together renewable production and consumption is a complex task, but it enables an effective risk allocation and ensures a well balanced structure that can withstand the test of time. We owe this success to KGAL and ORI Martin, who worked with us very effectively to reach this ambitious goal.”
Michael Ebner (Managing Director for KGAL) also stated “The agreement with DXT Commodities and ORI Martin is an integral part in the realization of our photovoltaic solar project in Sardinia which will add more than 50 MWp to our European renewable energy portfolio. The transaction is certainly a result of both DXT Commodities and ORI Martin being such professional counterparties for this cornerstone project and it underlines our efforts to develop renewable energy investments outside of state-subsidized support schemes to enable the continued
and sustainable growth of clean power. KGAL is looking forward doing more such PPAs in the coming years in the Italian market once more of our projects get close to operation.”
Uggero de Miranda (President of O.R.I. Martin S.p.A.) commented: “We are proud to contribute to the development of renewable energies in Italy: the construction of a 53 MW solar park thanks to the fact that ORI Martin purchases a significant portion of the electric energy produced. We express our gratitude to DXT and KGAL for the effective and forward-thinking strategic view”.
DXT Commodities S.A. is a Swiss trader operating internationally and specialized in energy commodities. As market leader in the off-take of renewable power in Italy, managing about 3.5 GW of installed capacity, DXT aims to work closely with asset owners and offer a full range of dispatching services, maximizing the cash flow of their assets thanks to constant investments in technologies developed in-house and a strong team of analysts and traders.
KGAL Group is a leading, independent asset and investment manager with an investment volume of €21.5 billion, across 87,000 investors. The Group, founded in 1968, operates across Europe and has its registered office in Grünwald near Munich. It focuses on long-term capital investments for institutional investors in the property, aircraft and infrastructure asset classes. Over 350 employees contribute to achieving earnings that are stable in the long term, taking into account aspects of revenue and risk.
O.R.I. Martin S.p.A. is the leading Company of a diverse Group of Companies specialising for many years in the production of engineering steel. The Group primarily services both the automotive business and the mechanical industry. With more than 800 employees, it operates in different areas of the steel business: from the raw steel production to the supply of logistic services. The revenues of the fiscal year 2018 reached 575 million € (465 in 2017). O.R.I. Martin S.p.A. was established in 1933, it is equipped with an electrical arc furnace, rolling mill for wire rod and bars, furnaces for annealing and for quenching and tempering of steel bars and wire rod.