Migdal Insurance is expanding its strategic partnership with Doral Renewables LLC by committing an additional amount of up to $75 million in the second phase of the company’s Mammoth Solar project in northwest Indiana.
Migdal will own 22.5% of the project’s second phase, named Mammoth South, which is expected to generate 300 MW AC of clean energy.
“Midgal’s investment supports our achievement of becoming a market leader with the best people and a rapidly expanding project portfolio with over $6 billion in construction value,” says Nick Cohen, President and CEO of Doral. “Mammoth Solar, Doral LLC and the renewables market is transforming the world. Indiana is a leader in the energy sector and their efforts to form the strongest industry cluster are working. Doral is creating jobs and revitalizing communities across America.”
The new agreement would see Migdal increase its direct investment in the Mammoth Solar project to up to $175 million and its overall investment in Doral, including capital and credit to an amount of up to $415 million. This investment is being carried by virtue of Migdal’s option, under the initial agreement with Doral in May 2021, to invest in certain pre-defined projects of the company.
“Migdal increasing its investment is a direct expression of the trust offered by Israel’s institutional entities in the renewable energy sector and in Doral in particular,” comments Yaki Noyman, CEO of the Doral Group. “We have chosen partners that are not only interested in generating returns from its investment, but also in its impact on the public and the environment. We continue to initiate and develop more projects in Israel, Europe, and the U.S.”
In May 2021, Migdal acquired 20% of Doral’s ownership for $110 million. In addition, Migdal has allocated a $130 million credit facility and committed to invest up to $100 million in the first phase of the Mammoth Solar Project (Mammoth North), expected to generate 400 MW AC.
The Mammoth Solar project is one of the country’s largest solar farms with over 13,000 acres across Starke and Pulaski Counties in Northwest Indiana. The project is expected to generate 1.3 GW AC of clean energy. The project is further projected to encompass an economic investment of approximately $1.5 billion.
“We are delighted to deepen our investment in Doral LLC’s activities,” states Erez Migdali, deputy CIO and head of private assets at Migdal Insurance. “This significant, growing partnership is an indication of our trust in the renewables industry and in Doral. This investment is in correlation with our ongoing ESG policy, in which we have developed an investment framework of over NIS 3 billion in net positive investments, annually. I have no doubts that this deal, signed in the first days of 2022, is the first among many new investments we intend to promote in the upcoming year.”