Alternus, Hover Energy to set up microgrids JV for US, European market

US solar company Alternus Clean Energy Inc (NASDAQ:ALCE) and local microgrid solutions provider Hover Energy have agreed to set up a microgrid-focused joint venture for which the partners have already outlined a developed pipeline of 60 MW of capacity across the US and Europe.

The new entity will pool Alternus' expertise in solar and project finance, development and acquisition and Hover's microgrid patented portfolio covering wind generators and energy control systems, a press statement said on Thursday.

The joint venture already includes a developed pipeline of over 35 microgrid projects with blue-chip global clients in the US, UK and Ireland as initial markets. It will target customers among data centres and other commercial and industrial clients.

“We see a future where the grid is connected to hundreds, even thousands, of micro-grids. What has been needed is a one-stop-shop to allow companies achieve Net Zero directly,” said Hover’s CEO Chris Griffin.

Alternus will be the majority owner of the joint business with a shareholding of 51% and will recognise all revenue, with distributions made after consideration for reinvestment in the venture. Hover will hold the remaining 49%.

Under the terms of the agreement, Alternus will issue five million restricted shares to Hover as initial consideration. Some 3.5 million Alternus shares will be issued to the partner at closing, plus a potential 2.5 million more depending on share price performance after one year from closing.

Shares in Alternus were up 0.74% at USD 0.2305 in pre-market trading as of 0913 EDT in New York on Thursday. The company’s market capitalisation stands at about USD 18.7 million (EUR 17.1m).

(USD 1 = EUR 0.916)

Choose your newsletter by Renewables Now. Join for free!