Company: ALCE
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-007054
Chunk: 125

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 125
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 construction status during 2025. As part of our strategy to become a more comprehensive energy provider and expand operations into additional high-value complementary segments of the renewable energy industry we recently announced binding terms with Hover Energy LLC to form a joint venture to provide state-of-the-art clean energy microgrids to corporates, data centers and other facility owners. When completed, this new segment for Alternus should provide faster time to revenues and lower equity needs in a rapidly growing market with ever increasing energy demands due to growth in AI and onshoring of heavy industry to the United States. Business Model As a vertically integrated renewable energy business, Alternus operates across all key segments of the renewable energy project development life cycle from ‘greenfield’ planning and permitting phases, through to construction and long-term revenue and margin generation from sales of energy to customers. This integration of activities under one common ownership and management creates a ‘production line’ of new projects supporting organic growth, and visibility of pipeline, in the business going forward. This business model is designed to lock in lasting shareholder value by significantly reducing capex for newly developed projects, and lowering acquisition costs for acquired projects at pre-operation from other market participants. The earlier in the cycle that we acquire new projects means we retain more of the project market value created as it passes each milestone. If we acquire projects further along the value chain then we pay more capital (and value) out to third parties for those projects. The value creation at each stage results from the de-risking of the projects as they get closer to operation and as a result, attract higher valuations at the later stages as the project risk declines. 84 Alternus Clean Energy Project Stage Classification This method of operation is designed to bring the value created during the development cycle directly to Alternus, thereby reducing capital expenditure requirements to build out a larger portfolio, as the cost of acquisition and value captured can be reinvested in future growth. In addition, it provides greater certainty of future revenue streams as the projects owned today reach planned operation dates in the future. We generate our new project pipeline by working closely with a cultivated network of local and international project development partners, and recently directly via joint venture companies, that provide a continuous pipeline of new projects for acquisition and construction and operation. We believe that a key benefit of being a long-term owner of these projects are the long-term recurring incomes from the projects that provide stable and predictable income streams as the cumulative operational portfolio grows. Every time we add a new project into the portfolio, we get a lift in long-term incomes