Energy
This area of business includes a number of investments in the field of energy, including holdings in the Alon Tavor and Kesem Energy power plants. Mivtach Shamir started its main operations in the energy market in mid-2019 following its win in the Israel Electric Corporation tender procedure for the sale of the Alon Tavor power plant through MRC Alon Tavor Power Ltd. (“MRC”) in which the Company is a partner in equal parts with the Israeli company Rafek Energy and the Chinese company China Harbour Engineering (33.3% each). MRC paid ILS 1.875 billion for the power plant which is located in the Alon Tavor industrial area in the Jezreel Valley.
The power plant, which uses natural gas to generate electricity, was established by IEC in the early 1990s and became the first power plant to be privatized as part of the reform of the electricity sector.
The gas turbines at Alon Tavor include a natural gas-fired turbine with a capacity of 363 MW and a power plant consisting of two diesel-fired units, with a capacity of 110 MW each. A combined cycle gas turbine (CCGT) plant is a combination of industrial gas turbines and a steam turbine and is considered to be the most advanced technology in electricity generation that helps improve combustion efficiency.
MRC was given the option of building a new natural gas-fired power plant at the site using conventional open cycle gas turbine (OCGT) technology (“Peaker”) with a capacity of 230 MW, including the Dovrat wastewater treatment facility, fuel tanks, spare parts and related equipment.
The Company’s second energy activity is Kesem Energy, which is promoting a project to build a 780-MW natural gas-fired power plant on the land of Kibbutz Givat Hashlosha. The project is in the development stages and Mivtach Shamir has a 53% holding in the company, in which the remaining shareholders are the cooperative association of the kibbutz holdings and other entrepreneurs.
