Etrion Announces Update on Solar Projects in Japan

Etrion Announces Update on Solar Projects in Japan 
GENEVA, SWITZERLAND -- (Marketwired) -- 02/03/14 -- Etrion
Corporation ("Etrion" or the "Company") (TSX:ETX)(OMX:ETX), a solar
independent power producer, announces an update for its solar project
development in Japan as part of the recently announced strategic
partnership with Hitachi High-Technologies Corporation ("HHT")
(TOKYO:8036), a subsidiary of Hitachi, Ltd.  
Management Comments 
Marco A. Northland, Etrion's Chief Executive Officer, commented: "We
have secured the Feed-in Tariff and have recently executed land
agreements for our first two solar projects in Japan, Shizukuishi and
Mito, with a combined total capacity of 34 MW. We have also entered
into a cooperation agreement with the city of Shizukuishi to advance
the development of our project there. Hitachi High-Tech and Etrion
are working together to reach financial closing and start
construction on both of these solar parks later this year. We
continue to target a solar project pipeline in Japan of at least 100
MW under construction or shovel-ready by 2015." 
Mito (9.3 MW)  
Etrion has entered into a development agreement with HHT to build,
own and operate a solar park, Mito, with a total capacity of 9.3 MW
in the Mito region in central Japan. The electricity will be sold
through a local energy utility and injected into the Japanese
electricity network under the fixed-price JPY-denominated Feed-in
Tariff (FiT), already secured for 20 years, equivalent to JPY 40 per
kWh (USD 0.39 per kWh). Once operational, Mito is expected to produce
approximately 10 million kWh of solar electricity per year.
Construction of the Mito solar park is expected to commence in the
second quarter of 2014, subject to Etrion and HHT closing the
necessary debt financing and completing the permitting process. The
solar project is expected to be operational in the first half of
2015.  
The total project cost, including costs related to the licenses,
permits, development and construction, is estimated to be USD 30
million, which is expected to be financed mostly by long-term,
non-recourse project debt in local currency from a Japanese financial
institution on competitive terms. The remaining equity portion is
expected to be funded 85 percent by Etrion and 15 percent by HHT,
acco
rding to their respective ownership interests. 
Shizukuishi (24.7 MW)  
Etrion has also entered into a development agreement with HHT to
build, own and operate a second solar park, Shizukuishi, with a total
capacity of 24.7 MW in the Iwate region in northern Japan. In
addition, Etrion has entered into a cooperation agreement with the
city of Shizukuishi to assist the Company with the permitting
process. The electricity will be sold through a local energy utility
and injected into the Japanese electricity network under the
fixed-price JPY-denominated FiT, already secured for 20 years,
equivalent to JPY 40 per kWh (USD 0.39 per kWh). Once operational,
Shizukuishi is expected to produce approximately 24 million kWh of
solar electricity per year. Construction of the Shizukuishi solar
park is expected to commence in the second half of 2014, subject to
Etrion and HHT closing the necessary debt financing and completing
the permitting process. The solar project is expected to be
operational in the fourth quarter of 2015.  
The total project cost, including costs related to the licenses,
permits, development and construction, is estimated to be
approximately USD 75 million, which is expected to be financed mostly
by long-term, non-recourse project debt in local currency from a
Japanese financial institution on competitive terms. The remaining
equity portion is expected to be funded 85 percent by Etrion and 15
percent by HHT, according to their respective ownership interests. 
About Etrion 
Etrion Corporation is an independent power producer (IPP) that
builds, owns and operates utility-scale solar power generation
plants. Etrion owns 17 solar power plants in Italy with approximately
60 MW of installed capacity. The Italian operations generate more
than USD 40 million of annual earnings before interest, taxes,
depreciation and amortization (EBITDA). Etrion is also developing
greenfield solar power projects in Chile and Japan. The Company is
listed on the Toronto Stock Exchange in Canada and the NASDAQ OMX
Stockholm exchange in Sweden under ticker symbol "ETX". Etrion's
largest shareholder is the Lundin family, which owns approximately 24
percent of the Company's shares directly and through various trusts.  
Etrion discloses the information provided herein pursuant to the
Swedish Securities Market Act. The information was submitted for
publication at 08:05 CET on February 3, 2014. 
Note: The capacity of power plants in this release is described in
approximate megawatts on a direct current (DC) basis, also referred
to as megawatt-peak (MWp). A megawatt-peak = 1 million peak watts. A
peak watt, the unit used to rate the performance of photovoltaic
collectors, will deliver 1 watt of electricity under standard
conditions of 1,000 watts of light intensity per square meter and an
ambient temperature of 25 degrees C. 
This press release contains certain "forward-looking information"
within the meaning of applicable Canadian securities laws. All
statements, other than statements of historical fact, that address
activities, events or developments that the Company believes, expects
or anticipates will or may occur in the future (including, without
limitation, statements relating to the timing of the development of
the Shizukuishi and Mito solar projects, the anticipated construction
costs thereof and the amount of electricity expected to be generated
therefrom) constitute forward-looking information. This
forward-looking information reflects the current expectations or
beliefs of the Company based on information currently available to
the Company as well as certain assumptions including, without
limitation, assumptions with respect to project costs and the ability
of the Company to obtain required permits in a timely fashion and
project financing on economic terms. Reliance should not be placed on
forward-looking information. Forward-looking information is subject
to a number of significant risks and uncertainties and other factors
that may cause the actual results of the Company to differ materially
from those discussed in the forward-looking information, and even if
such actual results are realized or substantially realized, there can
be no assurance that they will have the expected consequences to, or
effects
 on the Company. Factors that could cause actual results or
events to differ materially from current expectations include, but
are not limited to, the risk of project cost overruns, uncertainties
with respect to the receipt or timing of all applicable permits for
the development of the Shizukuishi and Mito projects and the risk
that the Company may not be able to obtain project financing on
economic terms. 
Any forward-looking information speaks only as of the date on which
it is made and, except as may be required by applicable securities
laws, the Company disclaims any intent or obligation to update any
forward-looking information, whether as a result of new information,
future events or results or otherwise. Although the Company believes
that the assumptions inherent in the forward-looking information are
reasonable, forward-looking information is not a guarantee of future
performance and accordingly undue reliance should not be put on such
information due to the inherent uncertainty therein.
Contacts:
Pamela Chouamier - Investor Relations
+41 (22) 715 20 90
www.etrion.com
 
 
Press spacebar to pause and continue. Press esc to stop.