Stark Power Acquires Cottage Grove Energy Campus

NEW YORK and TEL AVIV, Israel, Oct. 8, 2026 /CourierPR/ -- Stark Power Ltd., a power plant and infrastructure development company focused on the U.S. market, has announced a definitive agreement to acquire the Cottage Grove energy campus near Cottage Grove, Minnesota. Strategically located near Minneapolis, the energy 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 battery storage 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.

This acquisition 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. The acquisition of 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.

Stark Power Ltd., founded by former senior executives of Enlight Renewable Energy and Nofar Energy, pursues large-scale opportunities at the intersection of power generation and digital infrastructure, leveraging deep experience in power development, capital markets, and project execution. The acquisition of Cottage Grove is a strong foundation for the continued growth of Stark's U.S. power generation segment.

The transaction, which is expected to close in the fourth quarter of 2026, subject to customary conditions, will advance the BESS project toward construction and its targeted 2028 commercial operation date.

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