OPC Energy Ltd. announced that on March 3, 2024, entered into a non-binding memorandum of understanding with Intel Israel, an existing customer of OPC, pursuant to which OPC?s subsidiary will construct and operate a power plant with a capacity of at least 450 MW (and OPC does not expect capacity to exceed 650 MW). The Project will supply electricity to Intel?s facilities in Kiryat Gat, including an expansion of the facilities which is currently taking place, for a period of 20 years from the commercial operation date. In accordance with the MoU, OPC?s subsidiary will hold exclusive project rights, and will bear its construction cost.

The MoU includes provisions regarding promotion of the development and planning of the Project, acquisition of the rights to land, and collaboration of the parties to obtain the required permits in connection with the Project. The existing electricity supply agreement between the parties shall continue to apply in relation to Intel?s electricity requirements beyond the Project?s capacity, subject to adjustments and conditions. In addition, the MoU includes arrangements regarding the tariff that will be paid to OPC?s subsidiary, which is based on rates that reflect a discount to the generation component tariff (graduated and based on the Project?s characteristics) and other provisions that will be included in a detailed agreement that the parties are expected to enter into.