N2OFF and Solterra Brand Services to develop battery storage projects in Sicily

In a significant development for the European renewable energy market, N2OFF, Inc. (NASDAQ: NITO) (FSE: 80W), a clean tech leader specializing in sustainable energy and agri-tech innovation, has announced a partnership with Solterra Brand Services Italy (SBSI). The two companies signed a binding Letter of Intent (LOI) to co-develop two Battery Energy Storage Systems (BESS) in Sicily, each with a capacity of 98MWp/392MWh. This marks a pivotal step in advancing Italy’s energy storage capabilities while addressing the region’s increasing demand for renewable energy solutions.

Under the agreement, N2OFF will hold a majority 70% stake in the projects, with investments totaling €2.35 million, paid in milestone-based installments. This collaboration follows a successful non-binding term sheet executed in November 2024 and positive due diligence results reported by Solterra Ltd.

What This Means for Italy’s Renewable Energy Future

The partnership reflects N2OFF’s commitment to accelerating renewable energy adoption in Europe. The two BESS projects in Sicily are designed to meet the growing need for advanced energy storage solutions, which are critical for grid stability and efficiency. As more renewable projects come online, the demand for storage technologies capable of handling energy fluctuations continues to rise.

According to the consultancy firm DNV’s Energy Transition 2024 report, energy storage systems are no longer confined to frequency-response management. Instead, they are expanding to applications like price arbitrage and capacity provision, making long-term storage projects more vital than ever. These systems ensure that renewable energy sources, like solar and wind, can provide consistent power to the grid.

The Italian government is also supporting the growth of energy storage through the MACSE scheme, which plans to conduct its first capacity auctions in early 2025. These 15-year contracts aim to incentivize storage development, further aligning Italy’s energy infrastructure with its renewable energy goals.

Approved and Ready for Development

The two Sicily-based projects have already received approval for grid connection from Terna SpA, Italy’s primary transmission system operator. This key milestone guarantees that the projects align with regulatory and technical requirements, paving the way for development.

Construction is expected to take 18 to 24 months, with the projects reaching a Ready-to-Build stage upon completion. Once operational, these systems will play a critical role in enhancing grid flexibility and supporting Italy’s energy transition.

Strategic Collaboration Between N2OFF and Solterra

The joint venture between N2OFF and Solterra Ltd. underscores the companies’ shared vision of advancing renewable energy and creating sustainable solutions for global energy challenges. Solterra Brand Services Italy, a subsidiary of Solterra Ltd., brings extensive experience in renewable energy project origination and development.

Liran Giladi, chairman of the Brand Group and a partner in SBSI, highlighted the synergy between the two entities. He noted that SBSI’s local expertise in project development, combined with N2OFF’s funding capabilities and technological innovations, will create a mutually beneficial partnership. Giladi also expressed optimism about the potential for expanding their collaboration to future projects, further enhancing value for shareholders.

N2OFF’s Broader Mission

N2OFF’s commitment to clean energy extends beyond its recent ventures in the solar PV and energy storage sectors. The company’s Israeli subsidiary, NTWO OFF Ltd., focuses on mitigating nitrous oxide emissions, a greenhouse gas with a global warming potential 310 times greater than carbon dioxide. Through its efforts, N2OFF is driving sustainable agricultural practices and offering integrated solutions that balance environmental and economic goals.

This latest venture in Sicily aligns with N2OFF’s overarching strategy to deliver scalable and sustainable solutions across multiple sectors, including energy storage, greenhouse gas reduction, and agri-tech innovation.

The Road Ahead for Energy Storage in Europe

As Europe transitions towards cleaner energy, projects like those spearheaded by N2OFF and SBSI will play a crucial role in bridging the gap between renewable energy production and grid reliability. Italy, with its proactive policies like the MACSE scheme, is poised to become a leader in energy storage technology.

With Sicily’s new BESS projects set to add 196MWp of storage capacity, N2OFF is well-positioned to contribute to this transformation. By prioritizing innovation and strategic partnerships, the company continues to solidify its role as a key player in Europe’s clean energy future.