DCI USA, Inc. will be the Lead Strategic Investor in the takeover of an existing wind turbine farm in Israel.
DCI has entered into an agreement with Dr. Abraham Melamed and Dr. Zahal Harel, the largest Israeli developers of clean energy wind turbine windmill farms.
DCI's investment will be made through a newly-created Israel subsidiary, Gunther, Ltd., which would immediately upgrade the turbines at the existing, working Tel Assaniya wind turbine farm site.
Through various subsidiaries, DCI is also planning to establish new wind turbine farms in Israel, Jordan, Turkey, and Australia.
DCI will fund its new Israel subsidiary with $3,000,000, of which approximately $500,000 would be cash equity from DCI and the balance from other third-party financing directly to the subsidiary.
According to DCI, the Israeli site could upgraded with seven turbines with a capacity of at least 2.3MW each, to be installed once a building permit is obtained. The building permit is necessary since the proposed new towers would be substantially taller than the existing ones.
The entire project is expected to take between 12 to 18 months. The upgrade will increase the wind farm's revenues to an approximately $4 million.
If the event of any delays, a near-term alternative for the site would be to replace 10 of the existing smaller, older wind turbine generators with 10 new 750 KW turbines which will not require any building permits. DCI estimates that this near-term upgrade would increase the net revenues of this site to $2 to $3 million.
By law, the Israeli government is required to purchase, at a stated price, all of the energy output of Tel Assaniya and other clean energy approved sites.
