N2OFF and Solterra Announce the Closing of a Definitive Agreement to Develop 196 MWp Battery Storage Projects in Italy

N2OFF, Inc.\ (NASDAQ: NITO) (FSE:80W) (“N2OFF” and the “Company”), a clean tech company engaged in sustainable solutions for energy and innovation for agri- tech, announced today the closing of a definitive agreement with Solterra Renewable Energy Ltd’s subsidiary, Soltera Brand Services Italy , a company that specializes in the origination and development of renewable energy projects in Italy According to the agreement, the purchased projects relate to 2 Battery Storage (“BESS”) systems in Sicily, Italy, each with a capacity of 98MWp/392MWh.

The agreement includes the purchase and development of the projects, with a total investment of up to €2.3 million, to be paid in milestones. N2OFF will hold 70% ownership in the projects, further solidifying its entry into the European energy storage market.

These projects are part of the broader joint venture between N2OFF and Solterra Renewable Energy Ltd., which focuses on solar and energy storage initiatives. The collaboration reflects the companies ‘shared vision of advancing renewable energy adoption and addressing the increasing demand for energy storage solutions to enhance grid flexibility.

As more renewable projects are coming online, the storage market is in demand and is crucial for grid flexibility. According to DNV, a global leading consultancy firm,in their report on Energy Transition 2024, “as storage capacity surpasses 0.5% of grid capacity, the focus is transitioning from frequency-response management to broader applications such as price arbitrage or capacity provision, which increases the demand for longer term storage projects”. Italy has recently introduced the MACSE scheme. MACSE currently plans to conduct its first energy storage capacity auctions in the first half of 2025, offering 15-year contracts to incentivize the development of storage projects. This mechanism is designed to support Italy’s transition to renewable energy by ensuring grid stability and reliability.

The current 2 BESS projects have already received approval for the connection capacity from Terna SpA (the Italian transmission company), which will be secured simultaneously with the closing of the transaction. The development is currently expected to take 18-24 months for these projects to reach a Ready-to-Build stage.