The dilemma of moving the headquarters from Greece concerns the management of Mytilineos Energy & Metal as the company grows and expands its activities in international markets.

The head of the company, Evangelos Mytileneosshortly after announcing a major investment of €1.16 billion to acquire 1.4 gigawatt PV parks in Canada and on the sidelines of yesterday’s regular shareholders’ meeting, left open the possibility of relocating its headquarters outside of Greece.

When asked about this, he called it a “delicate” issue in connection with the pre-election period and stressed, however, that he would be able to answer on July 27, after the teleconference at the end of the semester. “This is not an easy question, but we are thinking about it. It is definitely not political and I will not answer now, because I am afraid that it will become an object of political exploitation,” he said and explained that he was being pressured to move the headquarters apartments by major shareholders who believe that the company’s values ​​are traded in Greece at a “humiliating” level.He also noted that Mytilineos Energy & Metal lacks investment grade because its headquarters is in a non-investment grade country. Reaching investment grade will mark the country’s transition to developed markets and, according to Mr. Mytileneos, will mobilize a huge influx of capital that cannot happen today due to their charters that hamper such moves in emerging markets.

Earlier, speaking to the company’s shareholders at the general meeting, Evangelos Mytileneos emphasized that this is an excellent investment in an important market, in which the Fairfax shareholder will contribute to its development. Mr. Mytilineos specifically mentioned the investment support measures for the energy transition undertaken by Canada, following the example of the United States, and emphasized that the photovoltaic parks that Mytilineos will develop in Canada in the amount of 1.16 billion euros will be subsidized at a rate of 30%, raising the company’s IRR in 2-2.5 times. “The US, along with the IRA, put money on the table. Europe responded with a well-written wish list that does not excite European investors and especially the energy-intensive industry, as European companies one by one move their headquarters and operations to North America and the Far East, he said characteristically.

Major investment of €1.16 billion to acquire 1.4 gigawatt solar parks in Canada.

The cost of natural gas in Europe is five times higher than in America, and electricity costs $20/MWh, he said, explaining on the sidelines of the general meeting the reasons why the company is considering building an aluminum smelter in Canada or the US. plan, which he revealed in an interview he gave the same day to the Canadian newspaper Globe and Mail. Speaking about natural gas prices, he said that “Europe was very lucky last winter because the mild winter and the lack of demand from China created ideal conditions”, and he estimates that “until 2026 there are very large investments that are now under construction , we are at the mercy of the weather and China.” Speaking about Mytilineos, he said that the company is very well protected from price fluctuations, having developed a wide network of activities in the energy sector together with Aluminum, which he called the country’s largest “battery”, since, as a large consumer, it can absorb or release energy depending on conditions. He highlighted the issue of investment in renewable energy and the risk of zero or even negative prices, stressing that those renewable energy units that do not have standardized tariffs or PPAs will suffer big losses.

According to Mr. Mytilineos, the company’s operating income in 2023 will exceed 1 billion euros, and the amount of “green” EBITDA will reach 250 million euros.

The acquisition of a 1.4 GW solar portfolio from Westbridge Renewable in Alberta, Canada for €1.16 billion is the largest investment in Mytilineos history and the first of its kind in North America. Alberta is an ideal choice, as the region has the highest solar radiation in Canada, which is necessary for the development of photovoltaic projects. In addition, Alberta is one of the fastest growing renewable energy markets in North America and has set a goal of achieving 30% renewable energy production by 2030.

The two most developed projects (610 MW) are expected to be ready for construction by the end of this year, while the remaining three projects (about 800 MW) are at an advanced stage of development and should be implemented by mid-2024. • All projects submitted (and/or approved) for the installation and use of batteries and energy storage systems with a total storage capacity of 1200 MWh. Mytilineos already has a total portfolio of 10.5 GW of renewables at various stages of development around the world, which will exceed 11.9 GW after the completion of the transaction in Canada.