In Israel, Doral Energy continues to be a powerhouse in the world of renewable energies. The Group operates hundreds of connected projects generating green electricity, including facilities that integrate extensive energy storage systems. Concurrent with its significant momentum in the local market, Doral established its U.S. activity, Doral LLC, about 5 years ago. Doral LLC has recently reported impressive records, positioning it among the top solar development companies in North America. Just recently, the company raised $400M in capital from APG, a leading investment firm.
“Doral LLC was founded in 2019 as a partnership between Doral Group and our American partner”, says Yoni Hantis, Deputy CEO, Doral Group. “The company started from scratch and while other U.S. companies acquired various platforms to generate green energy, we took an opposite and entrepreneurial approach, independently contacting farmers for access to land. We took this measure thinking that it would maximize our value in light of the company’s substantial relative advantage – the ability to develop the land and facilitate maturation and construction. Our approach has proven itself. Our relationship with the farmers is currently a huge relative advantage in the U.S. market.”
You conduct similar operations in Israel. What do you think is the big difference between Israel and the U.S.?
“Mainly the size of the agricultural lands. Israel is a small country with limited areas, but in the U.S., there are private landowners with huge spreads. Thus, for example, our flagship project in Indiana covers 13,000 acers, the sizes of Tel Aviv or Manhattan. It is the largest project of its kind in the U.S. – generating 1.6 GW, and we have other extensive projects in states like Pennsylvania, Wisconsin, Ohio and others, all progressing nicely. The project in Indiana is already 1/3 complete – 480MW – and the system will soon be connected to the local electric company.”
Among the first to identify Doral LLC’s success in the U.S. was Migdal Insurance, which partnered with Doral in the U.S. in 2021, undertaking to invest $350M in the company. Doral LLC recently reported another dramatic deal – a minority capital round of $400M – a very impressive measure in the U.S market. The newly invested capital enables it to establish additional 2 gigawatts projects. Throughout this entire period, the company signed financing agreements with significant financing entities in the U.S., such as Bank of America and Deutsche Bank. Doral LLC currently has a project backlog of over 14 gigawatts in 24 different U.S. states. This is an amazing figure achieved within just 5 years.
As the company soared in the U.S. market, S&P Global ranked it among the top ten solar development companies in the U.S. “Our success comes from a number of key factors that make us stand out against other market players”, says Hantis. “First, unlike others, we know how to work with the individual farmer. We talk to the farmers in person and accompany the process from A to Z. Secondly, we have proven capital and financial robustness, providing our partners the confidence that we can meet our obligations and execute cutting edge projects. These advantages underlie the company’s success in obtaining land and ensuring connection to the grid – the two major elements for establishing mega-projects like these.”
“Another factor that relates to a unique feature of the U.S. market is the huge data centers going up throughout the U.S., mainly serving the high-tech companies and specifically AI companies. These centers consume a great deal of electricity and they need our green and economical solutions. We can say that the U.S. market has been waiting for this innovation, and I am pleased that we are at the forefront of the global green energy revolution. By the way, the figures speak for themselves and Goldman Sachs recently reported that investments of ~$20B will be required in renewable energy in the U.S. until 2030 in order to meet green electricity consumption, a trend led by the developing AI sector.”
Why the AI sector?
“Because it is fundamentally sustainability biased. It needs huge data centers that consume enormous amounts of electricity and, in addition, its consumption is highly monotonous with no extreme phenomena. Thus, green energy is worthwhile for it and for the companies developing the solar systems. The fact that we have a priority on the grid provides us with a huge competitive advantage, and the fact that we are an Israeli entrepreneur leading this revolution in the U.S. is a great source of pride.”
This article was written in cooperation with Doral