Offshore Oil Firm Eco Atlantic Launches Renewables Division

Eco Atlantic, an oil company with offshore oil and gas acreage in Guyana and Namibia, said Tuesday it had formed a new solar energy-focused company Eco Atlantic Renewables, citing, in part, a lack of oil and gas acquisition opportunities.

Formed with Nepcoe Capital Partners Ltd. ("Nepcoe"), a renewable energy developer and investment company, the aim of Eco Atlantic Renewables is to source, acquire and develop an exclusive pipeline of potential high yield solar projects. 

Eco (Atlantic) Oil & Gas Ltd. ("Eco Atlantic") owns 70% of Eco Atlantic Renewables and the remaining 30% is owned by Nepcoe.

"Investment into renewables, alongside its principal oil and gas exploration business, will see Eco Atlantic becoming a diversified, growth oriented energy company," Eco Atlantic said.

"Through the joint venture with Nepcoe, Eco Atlantic Renewables has secured exclusivity to a potential pipeline of more than 2 Gigawatts ("2 GW") of prospective PV projects, mainly in Southern Europe's high solar hours' sunbelt," the company said.

"First acquisition of a fully licensed and permitted ready-to-build project for an aggregate consideration of c.€1.1m paid by Eco Atlantic Renewables using funds available from the loan completed on 25 January 2021.  The acquired 10.57 MW Kozani project in Greece has a secured feed in tariff and management estimates an internal rate of return ("IRR"), once built, of c.9% unlevered and c.13% levered," the company said.

"Subject, inter alia, to the availability of follow on project finance, Eco Atlantic Renewables is targeting the development and construction of c.100 MW of operating grid-connected projects, in addition to securing the rights for an additional c.800 MW currently in development, in its first full year of operation," the company said.

Gil Holzman, Co-Founder and Chief Executive Officer of Eco Atlantic, commented:"We are not a management team that likes to sit and wait for outcomes.  Following several months of extensive strategic work and identification of multiple projects by the management team and Board of Directors, this exciting opportunity has crystalized.  Our decision to form this new majority held renewable energy company was partly driven by a lack of oil and gas acquisition opportunities that are as good and as prospective as the ones we already hold."

"While we remain focused and fully committed to achieving near term exploration success in Guyana and Namibia, we are fully aware of the global energy transition that is firmly underway. The creation of Eco Atlantic Renewables is a clear demonstration that Eco Atlantic is responding to the changing marketplace.  We have structured the new venture in such a way that our oil and gas assets in Guyana and Namibia remain the core of our business, we have retained adequate near term financing and both of our regions continue to demonstrate significant potential for our shareholders," Holzman said.

As for the solar venture, the ready-to-build and advanced development stages projects that have already been identified in the company's pipeline include the following: Greece - 10.57MW (wholly owned having been acquired on 25 January 2021); Spain - 31.25MW (in advanced stages of exclusive negotiations); Canary Islands - 100MW (exclusive option); Italy - 800 MW (exclusivity secured). 

"The ready to build projects have in place a secured grid connection, environmental permits, building permits and lease or purchase agreements on the land. Projects are subject to full financing in the form of equity and customary project finance," the company said.