FORT MILL, South Carolina - Alternus Clean Energy Inc. (NASDAQ: ALCE) has announced the addition of three new Wind-Powered Microgrid™ projects in Hawaii, following a recent partnership with Hover Energy LLC and Hawaii Construction & Development Consulting (HCDC). These projects, scheduled to begin installation in Q4 2024, will join the initial microgrid project at Union Plaza in downtown Honolulu.
The total installed capacity of the four projects is expected to be 1MW, predicted to generate around 1.3GWh of clean energy annually, nearly covering 100% of the annual power consumption. The contracts for these projects are valued between $3-$4 million, depending on final configurations.
Further solidifying their collaboration, Alternus and Hover are forming a joint venture company, with Alternus holding a 51% ownership and Hover 49%. The venture aims to capitalize on the strengths of both companies, combining Alternus' expertise in solar energy and Hover's wind generator and energy control system technologies. The newly announced Hawaii contracts, as well as approximately 60 MW from Hover's pipeline, are set to be transferred to the joint venture upon its establishment later this year.
Chris Griffin, CEO of Hover, highlighted the advantageous conditions in Hawaii for renewable energy due to high electricity rates, abundant sun and wind, and significant tax credits and incentives. Vincent Browne, CEO of Alternus, expressed excitement about the Hawaii orders and the growth prospects for their joint business in the region.
Alternus Clean Energy, headquartered in the United States, operates as an independent power producer focused on developing, installing, owning, and operating utility-scale solar parks in North America and Europe. The company's growth strategy includes reaching 3GW of operating projects within five years through organic development and strategic opportunities.
Hover Energy is dedicated to providing sustainable energy solutions and has designed the patented Wind-Powered Microgrid™ technology. HCDC, focused on sustainable development, partners with NetZero Hawaii to promote smart, sustainable housing based on LEED Platinum Certification and NetZero principles.
The information in this article is based on a press release statement and is intended to provide an overview of Alternus Clean Energy's recent business developments in Hawaii.
In other recent news, Alternus Clean Energy, Inc. has made significant strides in its operations. The company announced an extension of the waiver of certain financial covenants related to its green bonds, which are issued by Solis, a wholly-owned subsidiary of Alternus. The latest extension is set until August 30, 2024, giving Alternus more room to meet its financial obligations under the bond terms. It's important to note that these covenants had been previously breached, leading to a series of extensions granted by the bondholders.
Simultaneously, Alternus has announced definitive agreements to acquire an 80 MWp solar portfolio across the United States, a transaction valued at $60 million. This acquisition is expected to close by the end of the second quarter of 2024 and is anticipated to generate an average annual revenue of $6.7 million and operating income of $5.1 million. The portfolio comprises 33 solar projects spread over eight states.
These are recent developments for Alternus Clean Energy, Inc., which is also involved in ongoing negotiations regarding the potential monthly extension of its bonds up to November 29, 2024. The company's management has expressed that these forward-looking statements are subject to numerous factors, including business and economic uncertainties.
InvestingPro Insights
As Alternus Clean Energy Inc. (NASDAQ: ALCE) forges ahead with its renewable energy initiatives in Hawaii, the InvestingPro platform provides key insights into the company's financial health and stock performance. Despite the optimistic business developments, ALCE's stock has faced significant challenges over the past year. Here are some InvestingPro Data metrics that shed light on the company's recent market performance:
- The 1-week price total return shows a gain of 9.89%, suggesting a recent uptick in investor confidence.
- However, a broader look reveals a more turbulent picture, with a 1-year price total return at -97.62%, indicating a steep decline over the past twelve months.
- The average daily trading volume stands at 0.16 million USD, reflecting investor engagement with the stock.
On the strategic front, InvestingPro Tips highlight critical aspects of ALCE's financial outlook:
- ALCE's stock generally trades with low price volatility, which could be appealing to investors looking for less turbulent assets.
- Despite being profitable over the last twelve months, the company's valuation implies a poor free cash flow yield, which may raise concerns about its financial sustainability.
Investors interested in Alternus Clean Energy can find a total of 8 InvestingPro Tips, offering deeper insights into the company's financials and stock behavior. These tips are designed to guide investment decisions and are accessible through the dedicated InvestingPro platform for ALCE at https://www.investing.com/pro/ALCE.
The recent positive developments in Hawaii, coupled with the detailed financial data and tips from InvestingPro, can help investors better understand the risks and opportunities associated with ALCE as it expands its renewable energy footprint.
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