#United States #Cottage Grove #Stark Power #Energy Campus

Stark Power to Acquire Cottage Grove Energy Campus

Stark Power Ltd., a rising player in the energy sector, has made headlines with its announcement of a definitive agreement to acquire the Cottage Grove energy campus located near Cottage Grove, Minnesota. This strategic acquisition marks a pivotal step in Stark Power's rapid growth trajectory since its inception earlier this year and aims to enhance the company’s existing power generation capabilities in the United States.

Overview of the Cottage Grove Energy Campus

Situated roughly 20 miles southeast of Minneapolis, the Cottage Grove campus boasts a reliable capacity of 262 megawatts (MW) through a natural gas-fired combined-cycle power plant. Additionally, it houses an impressive battery storage system with an 80 MW / 320 MWh capacity, which is projected to commence commercial operations by 2028. The site's favorable connectivity to the Midcontinent Independent System Operator (MISO) market further enhances its strategic value, making it an attractive investment for Stark Power.

The Advantages of Acquisition

For Stark Power, the Cottage Grove campus is not just about boosting power generation. It offers a robust partnership with Northern States Power Company, a subsidiary of Xcel Energy. The existing contract with this subsidiary will transition to a 15-year tolling agreement with Basin Electric Power Cooperative starting December 2027, extending through 2043. The plant’s ability to provide reliable, dispatchable electricity is crucial in a growing market where the demand for energy continues to escalate. Furthermore, the campus supplies steam to the adjacent manufacturing site of 3M, showcasing its diverse utility.

Most notably, the battery energy storage system (BESS) being constructed on-site will enable Stark Power to create a uniquely integrated energy solution that combines power generation and storage. This co-location promises efficiencies that could become a cornerstone in exploring renewable energy alternatives.

Strategic Growth for Stark Power

Since its establishment and listing on the Tel Aviv Stock Exchange in March 2026, Stark Power has pursued aggressive growth strategies. The company has received considerable backing from prominent institutional investors to fund its expansion efforts. The acquisition of Sagebrush Infrastructure Partners and securing an $85 million corporate credit facility from Bank Hapoalim are recent accomplishments that bolster its endeavor in the U.S. energy landscape.

CEO Michael Avidan emphasized the strategic significance of the Cottage Grove acquisition, stating, "Cottage Grove is exactly the kind of asset Stark Power has been targeting. It combines operating and reliable generation near a major load center with long-term contracted revenues and a co-located storage project using the same site and interconnection."

This acquisition not only diversifies Stark Power’s portfolio but also establishes its second U.S. growth platform in contracted energy generation, seamlessly aligning with its existing data center development plans.

Path Forward

The completion of this acquisition is anticipated in the fourth quarter of 2026, subject to standard regulatory approvals and customary closing conditions. Upon finalizing the deal, Stark Power will expedite the development of the battery storage project and strives for its targeted operation date in 2028.

In summary, Stark Power's latest venture demonstrates its commitment to becoming a formidable player in the power generation sector, particularly as demand for reliable energy solutions continues to rise. The strategic location of the Cottage Grove campus, paired with its innovative co-location of generation and storage, positions Stark Power as a forward-thinking company ready to tackle the challenges of the modern energy marketplace.

About Stark Power

Stark Power Ltd. is committed to the development of scalable energy solutions, merging power generation with data infrastructure while leveraging deep expertise in capital markets and project execution. The company, led by seasoned professionals from Enlight Renewable Energy and Nofar Energy, seeks to capitalize on significant energy infrastructure opportunities in a rapidly evolving market.