MALÉ, Maldives, Jan. 08, 2024 (GLOBE NEWSWIRE) -- ABRAXAS POWER CORP. (“Abraxas”) announces that, on December 21, 2023, it submitted a formal Special Economic Zone (“SEZ”) application for a mixed use renewable energy project (the “Project”) in the Republic of Maldives (the “Maldives”). The Project is aligned with the Maldives government’s mandate to ensure sufficient, reliable, sustainable, secure, and affordable energy to achieve a prosperous Maldives, and is positioned to be a critical step in reaching the country’s net zero targets by 2030.
“The Project submission advances Abraxas’ position as a global energy transition leader, having secured over US$8 billion in capital projects through competitive government awards over the past year. This Project further showcases our leadership and expertise in supporting a complex energy transition. Abraxas’ mandate is to develop projects that further the United Nations Development Programme’s sustainable development goals, specifically Sustainable Development Goal 7 to “ensure access to affordable, reliable, sustainable and modern energy for all”, and our newly submitted Project in the Maldives is aligned with these goals. We are thrilled to have had the opportunity over the past 24 months to bring to bear our expertise to develop and submit such an innovative and groundbreaking project with low execution risk and a high social impact to the quality of life for all Maldivians. Our team has contributed significant resources and expertise in developing this Project for the government’s consideration and we believe that not only will the Project act as a critical part in the Maldives energy transition but also a catalyst for the development of other sectors and industries, bringing further diversification,” said J. Colter Eadie, Chief Executive Officer of Abraxas.
“The Project submission is further aligned with the commitment made by Maldives’ President Dr. Mohamed Muizzu during the recent COP28 summit to generate at least 33% of the Maldives’ energy needs through renewable sources within the next five years. The Project alone has the potential to fulfill the President’s commitment, making Dr. Muizzu possibly the first global leader to achieve their COP28 pledge, setting an international standard for expediency in achieving COP28 commitments,” said Mr. Eadie. “President Dr. Mohamed Muizzu’s government will have done more for Maldives’ environment through the approval of this high-impact Project than all other predecessors combined. His vision is further defined in Chapter 18 of President Dr. Muizzu’s manifesto.”
The other potential benefits to the people of Maldives from the Project include:
- Energy Efficiency/Foreign Currency Savings: Based on current fuel pricing, on an unsubsidized basis, the Project is forecasted to save the people of the Maldives approximately US$1.2 billion over 20 years and US$305 million over the next five years which can be allocated to other critical sectors in support of the people of Maldives.
- Pricing Stability: Ability to provide stable long-term energy pricing vs dependence on global fuel pricing linked to USD.
- Green Energy: Plan to deliver up to 50% of the greater Malé area’s energy needs with 100% clean and green energy, equating to 33% of Maldives’ entire energy demand.
- Knowledge Transfer: Bring knowledge, technological advances, and global best practices to the Maldives’ state owned enterprises to support the technical challenges of the energy transition.
- Investment Multiplier: Leverage the Project’s capital investment to support additional infrastructure upgrades and develop other critical sectors supporting the people of Maldives.
“We are excited to continue working through the approval process and look forward to the outcome and providing more details in the future on the project once approved,” said Mr. Eadie.
About Abraxas Power Corp.
Abraxas is a Canadian energy transition developer whose team has extensive experience in leading, financing, and solving the challenges associated with energy transition. The core senior management team of Abraxas has a proven track record of delivering complex large-scale development projects across various disciplines including renewable power and storage, hydrogen and ammonia production, industrial and precious metals, large-scale project construction, and operations at scale. The team possesses strong project finance and capital markets experience and have a history of creating value for shareholders, stakeholders and the communities they live in. Abraxas has signed strategic partnerships with various global strategics and technology providers.
Abraxas has secured over US$8 billion in capital projects through competitive government awards over the past year in furtherance of the energy transition, including:
Exploits Valley Renewable Energy Corporation (“EVREC”), a subsidiary of Abraxas, was awarded an exclusive right to pursue the development of a wind energy project in the central area of Newfoundland, Canada by the Ministry of Industry, Energy and Technology of Newfoundland & Labrador and has secured over 360 km2 of exclusive crown lands for development. The EVREC project is expected to include over 3,000 megawatts of installed onshore wind and solar, molecular and energy storage, and hydrogen and ammonia production, and associated port infrastructure. EVREC’s total capital requirements are estimated at over US$8 billion and the project is expected to deliver over 1 million tonnes per annum of 100% additional green ammonia before the end of the decade to Europe and other global markets. For more information, see the Newfoundland & Labrador Ministry of Industry, Energy and Technology’s press release dated August 30, 2023.
Cautionary Notes
Certain statements contained in this press release constitute “forward-looking statements”. All statements other than statements of historical fact contained in this press release, including, without limitation, statements regarding the development of Abraxas’ Project in the Maldives, the ability of the Project to meet the COP28 commitments, the ability of the Project to deliver benefits to the people of the Maldives including the projected cost savings, EVREC’s anticipated development of a project in the central area of Newfoundland, Abraxas’ strategy, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words “believe”, “expect”, “aim”, “intend”, “plan”, “continue”, “will”, “may”, “would”, “anticipate”, “estimate”, “forecast”, “predict”, “project”, “seek”, “should” or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only Abraxas’ expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied, or forecasted in such forward-looking statements. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Abraxas. These forward-looking statements are made as of the date of this press release and Abraxas assumes no obligation to update or revise them to reflect subsequent information, events, or circumstances or otherwise, except as required by law.
For more information, please contact:
J. Colter Eadie
Chief Executive Officer
Abraxas Power Corp.
+40 736-372-724
jceadie@abraxaspower.com
