#solar energy #Chile #Santiago #METLEN Energy #Glenfarne Asset Company

Historic Solar Energy Storage Agreement in Chile

On April 30, 2025, a transformative partnership was announced between METLEN Energy & Metals S.A. (METLEN) and a wholly-owned subsidiary of Glenfarne Asset Company, LLC. This landmark agreement will pave the way for the development and acquisition of solar energy storage systems in Chile, with an impressive installed capacity of 588 megawatts (MW) alongside a battery storage capacity of 1,610 megawatt-hours (MWh). The significance of this transaction extends beyond numbers; it reflects a shared vision for advancing renewable energy in a region known for its significant solar potential.

Details of the Agreement

The agreement entails Glenfarne acquiring a portfolio of operational solar projects in Chile, which aim to enhance the nation’s energy infrastructure significantly. The Battery Energy Storage Systems (BESS) are currently under construction, with completion expected within the next year. The diverse geographical spread of these projects, coupled with multiple interconnection nodes in Chile's National Electric System (SEN), ensures that the portfolio can be optimized for efficiency and reliability.

The total purchase price for this acquisition stands at $815 million, inclusive of the assumption of existing debt. This valuation is contingent upon certain financial assumptions and adjustments, which are common in such high-stakes transactions. The closing of the deal will take place once the BESS becomes operational and regulatory approvals are secured.

Significance of the Partnership

This agreement marks a pivotal moment for both companies, illustrating METLEN's commitment to advancing its global Asset Rotation Program centered around renewable energy projects. As energy storage systems become integral to modern energy markets, METLEN has established itself at the forefront, harnessing its unique competencies in development, engineering, and construction to create substantial value within its global energy operations.

Evangelos Mytilineos, CEO of METLEN, expressed his enthusiasm about the agreement, stating, “This is a historic transaction for METLEN as it propels the growth of our renewable initiatives. We identified the potential within the Chilean renewable market back in 2020 and successfully navigated the challenges to develop and finance these projects to the highest standards.” He further emphasized that this transaction solidifies their relationship with Glenfarne and sets the stage for future collaboration in mutual areas of interest.

Glenfarne's Commitment to Renewable Energy

Brendan Duval, founder and CEO of Glenfarne, stated that this transaction represents a significant advancement in their commitment to expanding their footprint within Chile's renewable energy sector. This partnership not only underscores their desire to foster a sustainable energy transition in Chile, but it also manifests in tangible operational efforts aimed at supporting that mission.

Astris Finance operated as the financial advisor for this agreement, while legal advisement was provided by Milbank LLP and Larrain y Asociados Ltda. on behalf of METLEN.

About METLEN Energy & Metals

METLEN Energy & Metals is a multinational industrial and energy company focused on sustainability and circular economy practices. Listed on the Athens Stock Exchange, METLEN reported a consolidated revenue of €5.68 billion and an EBITDA of €1.08 billion. They stand as a leading figure in green metallurgy across Europe, operating the only vertically integrated production unit of bauxite, alumina, and primary aluminum within the European Union. Their energy division offers comprehensive solutions encompassing both conventional and renewable energy projects, along with investments in battery storage technology and other green innovations.

About Glenfarne Group, LLC

Glenfarne Group operates as a private company engaged in the development, ownership, and operation of energy infrastructure assets. Based in New York and Houston, with offices in multiple major cities, Glenfarne's diverse portfolio encompasses over 50 energy infrastructure assets focusing on Liquefied Natural Gas (LNG) solutions, grid stability, and renewable energy projects across North and South America.

With this groundbreaking agreement, METLEN and Glenfarne set a new precedent in the renewable energy sector in Chile, showcasing their long-term vision for sustainability and collaboration. The future of energy in the region looks promising as both companies work tirelessly to advance their initiatives, fostering a cleaner, greener world for generations to come.