Etrion - Chairman, Aksel Azrac
Chairman, Aksel Azrac
Source: Brazil Iron
  • Solar power provider Etrion (ETX) has finally settled a long-running dispute with Japan-based Ziva Energy, regarding the Mie solar project
  • The dispute first arose in 2018, when tension between Ziva and Etrion’s japan-based development company emerged over the project’s original development services agreement
  • After two years of discussions, however, that original plan has changed, with Ziva now expected to acquire Etrion’s contractual structure, economic obligations and benefits toward the project for approximately C$43.35 million by December 28, this year
  • On top of the acquisition costs, Etrion’s Japan-based developer will also receive a $3.87 million development fee as compensation for work on the project to date.
  • Etrion (ETX) is up 10.2 per cent and is trading at 27 cents per share

Solar power provider Etrion (ETX) has finally settled a long-running dispute with Japan-based Ziva Energy, regarding the Mie solar project.

The two companies initially began working together on the project in 2015. Located near Yokkaichi city in Japan, the ground-mounted, fixed-tilt solar photovoltaic power project, is expected to generate up to 60 megawatts, and was intended to complement Etrion’s other solar assets in the region.

Updates on construction went silent in 2018, when tension between Ziva and Etrion’s japan-based development company broke out over the project’s original development services agreement. Through the original agreement Etrion planned to fund the project through development and then take over ownership, once complete.

After two years of discussions, however, that original plan has changed, with Ziva now expected to acquire Etrion’s contractual structure, economic obligations benefits toward the project for C$43.35 million by December 28, this year.

On top of the acquisition, Etrion’s japan-based developer will also receive a $3.87 million development fee as compensation for work on the project to date.

If Ziva’s payments fail to materialise by late December, however, Etrion would assume all shares in the site’s operating company, to either pursue to completion, or sell off entirely.

Meanwhile, Etrion’s planned investment structure at the property will continue as planned, which will include a financial contribution to the project’s operating company.

Marco Antonio Northland, Etrion’s CEO, commented on the long-awaited agreement with Ziva.

“We are pleased to have reached a new agreement with Ziva. I believe this is a big step forward for all parties by providing a way forward by year end,” he said.

As Etrion has not received updates on the project’s construction since the dispute broke out, it chose not to comment on when or if construction at the site is likely to restart.

Etrion (ETX) is up 10.2 per cent and is trading at 27 cents per share at 1:04pm EDT.

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