Redelfi S.p.A. (“Redelfi” or the “Company“) – a company at the head of the industrial group of the same name engaged in the development of innovative and sustainable infrastructures to promote the energy transition and listed on the Euronext Growth Milan segment of Borsa Italiana S.p.A. – announces that it has signed a term sheet with the company Flash S.r.l. (“Flash“), part of the WRM Group (“WRM Group“), concerning the creation of a joint venture for the joint development of stand-alone Battery Energy Storage Systems (“BESS Projects“) in Italy.

The agreement provides for the establishment of a specific newco under Italian law (“NewCo“), within October, 51% owned by Redelfi or a company controlled by it and 49% owned by Flash S.r.l. and which will invest its own resources in the development of BESS Projects with a target of 2.8 GW over a three-year period.

The technical-operational development activities of the BESS Projects will be handled entirely by Redelfi and governed by a Development Services Agreement (“DSA“) to be signed between NewCo and Redelfi within the year. Redelfi therefore participates in the operation as partner of Newco and developer of BESS Projects in Italy.

The WRM Group will retain, for the entire three-year period, a right of preemption on the purchase of the developed BESS Projects, under the aforementioned DSA, which can be exercised at market conditions and up to a maximum of 1 GW.

In addition, the agreement includes the evaluation of the possible use of areas owned by the WRM Group to be used for the development of BESS projects. This highly operational industrial-financial partnership allows Redelfi to officially enter the BESS Italian market through an ambitious development project, currently not reflected in the business plan presented last November. Redelfi undertakes to update the estimates in the said plan and give timely notice to the market.

The WRM Group is an independent investment fund specializing in Private Equity, Real Estate and Special Situations. The Group’s activities are focused on strategic event-driven investments, leverage buyouts, growth capital and distressed capital. The group operates in the industrial and energy sectors through its company Flash S.r.l. The joint venture with Redelfi marks WRM Group’s entry into the world of electrical infrastructure also with a view to making high profitability investments in compliance with the ESG principles and goals of the UN 2030 Agenda.

Davide Sommariva, Chairman of the Board of Directors of Redelfi S.p.A. commented: “The agreement with WRM Group lays the foundations for the creation of one of the most important Italian developers, the union of the different skills will allow us to gain a relevant share in the fast-growing market of energy transition.”

Domenico Colapietro, CEO of Flash S.r.l. and director of WRM Group’s energy division, said: “This strategic agreement with Redelfi allows us to join forces with a solid partner in the development of utility-scale electrochemical storage projects, fundamental both for the full exploitation of non-programmable renewable sources, such as solar and wind, and to offer stability services to the national grid. The development and valorization of renewable energy storage assets is one of the key factors for the growth of Flash, which intends to play an increasingly central role in Italy’s decarbonization and energy independence process.”