Stark Power to Acquire Cottage Grove Energy Campus in Minnesota

Strategically located near Minneapolis, 262 MW of reliable generation and an 80 MW / 320 MWh battery project establish Stark Power's U.S. power generation platform

NEW YORK and TEL AVIV, Israel, Oct. 8, 2026 /PRNewswire/ -- Stark Power Ltd. (TASE: STRK) today announced a definitive agreement to acquire the Cottage Grove energy campus near Cottage Grove, Minnesota, from Ultra Capital and Panamint Capital. Located approximately 20 miles southeast of Minneapolis and interconnected to the MISO electric wholesale market, the campus combines an operating 262 MW natural gas-fired combined-cycle power plant with a co-located 80 MW / 320 MWh battery storage (BESS) project expected to enter commercial operation in 2028.

The operating plant provides reliable and dispatchable generation in a market where electricity demand is growing and new dispatchable capacity can be challenging to permit and bring online. The plant is contracted with Northern States Power Company, a subsidiary of Xcel Energy, and beginning in December 2027, will transition to a 15-year tolling agreement with Basin Electric Power Cooperative through 2043. The plant also supplies steam to 3M's adjacent manufacturing site.

The BESS project will be built on the same site and connect through the plant's existing grid interconnection, facilitating a differentiated co-located generation and storage campus. The BESS is contracted under a 15-year tolling agreement with Northern States Power Company.

Cottage Grove marks another major step in Stark Power's rapid build-out since its formation and listing on the Tel Aviv Stock Exchange in March 2026. In the months since, Stark has completed equity raises backed by leading institutional investors, acquired Sagebrush Infrastructure Partners to establish its U.S. data center infrastructure platform, and secured an $85 million corporate credit facility with Bank Hapoalim. Cottage Grove now establishes Stark's second U.S. growth platform in contracted power generation, giving Stark complementary capabilities in both the generation and data center infrastructure markets.

Closing is expected in the fourth quarter of 2026, subject to customary conditions. Following closing, Stark will advance the BESS project toward construction and its targeted 2028 commercial operation date.

"Cottage Grove is exactly the kind of asset Stark Power has been targeting," said Michael Avidan, Chief Executive Officer of Stark Power. "It combines operating and reliable generation near a major load center with long-term contracted revenues and a co-located storage project using the same site and interconnection. Since launching Stark in March, we have built the balance sheet, institutional backing and operating platforms to pursue opportunities such as this one, and we believe Cottage Grove is a strong foundation for the continued growth of our U.S. power generation segment."

Orrick, Herrington & Sutcliffe LLP served as legal counsel and Verdonck Partners served as financial advisor to Stark Power on the transaction.

About Stark Power

Stark Power Ltd. (TASE: STRK) is a power plant and powered land infrastructure development company focused on the U.S. market. Founded by former senior executives of Enlight Renewable Energy and Nofar Energy, the Company pursues large-scale opportunities at the intersection of power generation and digital infrastructure, leveraging deep experience in power development, capital markets, and project execution.

Forward-Looking Statements

This press release contains forward-looking statements regarding, among other things, the expected closing of the transaction and the construction and commercial operation of the battery storage project. These statements are based on current expectations and are subject to risks and uncertainties, including closing conditions and permitting, interconnection, financing and construction risks. Actual results may differ materially. Stark Power undertakes no obligation to update these statements.

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SOURCE Stark Power Ltd.