Solar Alliance Signs Agreement for 56 Megawatt, U.S. $60 Million Solar Project
TORONTO and KNOXVILLE, Tenn., Jan. 05, 2021 (GLOBE NEWSWIRE) — Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR, OTC: SAENF) is pleased to announce it signed a binding Letter of Intent on January 4, 2021 (the “Agreement”) with Green Data Center Real Estate Inc. (“Green Data”) for the design and construction of a 56 megawatt (“MW”) solar project located in Illinois. The project will include battery storage capabilities and generator-based backup power. The capital cost of the solar portion of the project is expected to be approximately US$60 million. Under the terms of the Agreement Green Data is responsible for arranging project equity and debt and Solar Alliance has an option to provide up to 10% of the project equity.
“We are proud to partner with Green Data Center Real Estate on this exciting project that illustrates the value of our growing portfolio of solar projects,” said CEO Myke Clark. “Green Data is at the forefront of the growing wave of hyperscale data centers powered with renewable energy. This 56-megawatt project will offset a significant portion of their energy needs and create jobs and opportunities in Illinois. Solar Alliance has been working diligently to expand our microgrid and utility business and this project is an incredible opportunity to scale rapidly with a great partner. The option to provide equity for partial ownership of the project also aligns well with our stated goal of building a portfolio of projects that generate long term revenue streams for Solar Alliance,” concluded Clark.“Green Data is pleased to continue our strong relationship with Solar Alliance as we expand our portfolio of renewable powered data centers across America,” said Green Data COO Sean Stofer. “Renewable energy is the key to sustainable data and we are continuing to challenge the limits of solar and battery backup for our centers. Solar Alliance has been excellent to work with at our Murphysboro project and we have been impressed by the knowledge and experience they bring to the project. This next project, a hyperscale data center tech hub with 56-megawatt solar capacity will be a flagship for both companies. Combining solar and battery backup with the electrical requirements of a data center is complex and we are grateful to work with such a competent partner on this next endeavor,” remarked Stofer.Preliminary design work is expected to begin in the first half of 2021 with a decision on a construction timeline being completed as part of that process. The project is expected to generate margins in the range of the Company’s other large-scale solar projects. 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. A payment schedule will form part of the final construction agreement and will be disclosed on execution. Advancement of the project is dependent on the design and engineering targets and the final approval of Green Data and the completion of financing with solar investment tax equity.This is the second data center 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.Myke Clark, CEOAbout 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, Kentucky, Illinois, North/South Carolina and California and has an expanding pipeline of solar projects. Since it was founded in 2003, the Company has developed $1 billion of renewable energy 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.“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”