Shai Agassi's Better Place LLC has signed an agreement with Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL) to set up battery replacement points for the venture's electric cars at Dor Alon gas stations. The agreement comes two weeks after Better Place raised $350 million from a syndicate led by HSBC Holdings plc (LSE:HSBA; HKSE: 005; NYSE, Paris: HBC) and Israel Corporation (TASE: ILCO).
Better Place will initially launch a pilot program at a number of Dor Alon gas stations within the next few weeks. Better Place will bear the cost of the pilot. The battery replacement points will operate alongside the gas stations' regular business.
Better Place CEO Moshe Kaplinksy said, "Dor Alon is the first to realize that in order to provide energy solutions for future vehicles, it must provide suitable solutions for consumers now. Dor Alon's gas stations on intercity roads, including Road 6, will provide the owners of electric cards worry-free travel, even on long trips."
Dor Alon CEO Israel Yaniv said, "Dor Alon is the first energy company that will enable owners of electric car owners of the future to obtain electric refueling services at its gas stations. We consider this agreement with Better Place to be a strategic partnership that will create real value and innovation for the company's activity."
Dor Alon's share fell 4% by midday today to NIS 94.66, giving it a market cap of NIS 1.39 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on February 7, 2010
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