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

METLEN and Glenfarne Sign a Landmark Agreement in Chile

In a significant development for the renewable energy sector in Latin America, METLEN Energy & Metals S.A. and a fully-owned subsidiary of Glenfarne Asset Company, LLC have consummated a historic agreement to develop a portfolio of solar battery storage systems in Chile. This transformative collaboration will result in an installed capacity of 588 megawatts (MW) and a remarkable energy storage capacity of 1,610 megawatt-hours (MWh).

Details of the Agreement

Scope and Investment

The acquisition involves operational solar projects, with the construction of the battery energy storage systems (BESS) already underway. The completion of these installations is anticipated within a year. The projects boast geographical diversification and multiple interconnection points within Chile’s national electric system (Sistema Eléctrico Nacional, or SEN), ensuring an optimized operational portfolio. The total investment for this acquisition amounts to $815 million, inclusive of debt, based on specific financing assumptions and adjustments.

The transaction is set to close once the BESS has been commissioned, regulatory approvals are obtained, and standard financing conditions as well as other customary requirements for such transactions are met. This proactive step highlights METLEN's commitment to spearheading growth in the renewables sector and reflects its operational capabilities in executing complex global transactions.

Strategic Importance

Accelerating the Renewable Transition

This agreement is not merely a transaction; it represents a crucial milestone in METLEN's global asset rotation strategy focused on renewable energy projects. Evangelos Mytilineos, the CEO of METLEN, emphasized the significance of this transaction, stating, “This is a historic deal for METLEN as it primes our M Renewables for growth. We identified the potential in the Chilean renewable market back in 2020, successfully overcoming various challenges to develop, structure, and construct these projects per the highest standards.”

The partnership with Glenfarne not only strengthens METLEN’s standing in the renewable energy sector but also lays the groundwork for enhanced collaboration in other areas of mutual interest. Furthermore, the deal allows METLEN to release capital and unlock value amid challenging market conditions, reinforcing confidence in executing its asset rotation program.

Glenfarne's Viewpoint

Brendan Duval, the founder and CEO of Glenfarne, expressed enthusiasm about the alliance, stating, “This transaction marks an important step in Glenfarne’s commitment to expanding its presence in the Chilean renewables sector and deepening our business relationship with METLEN. We are excited to partner with METLEN in this venture, which aligns with our mission to invest in infrastructures supporting Chile’s energy transition.”

Future Prospects

Renewable Energy Synergy

With the rise of BESS, METLEN has positioned itself at the forefront of deploying both standalone and hybrid energy storage projects. The company's unique capabilities in development, engineering, structuring, and construction enable it to generate substantial value across its global energy operations. METLEN’s approach embodies a large-scale synergy model that integrates the metallurgy and energy sectors, ultimately delivering large infrastructure projects that define the future of energy.

Active in over 40 countries across five continents, METLEN continues to set benchmarks in competitive green metallurgy and offers comprehensive solutions across both thermal and renewable energy projects, along with battery storage and other green technologies.

In closing, this landmark agreement by METLEN and Glenfarne not only marks a significant advancement in Chile's renewable energy landscape but also underlines the growing importance of energy storage solutions in achieving sustainability goals for the future. This collaboration sets a precedent in how industry leaders can effectively work together to facilitate the transition towards renewable energy sources in an increasingly complex global environment.