Zorlu Enerji, a subsidiary of Turkish conglomerate Zorlu Holding, is selling its entire 25 percent stake in Israel’s Dorad Energy with an aim to end its fossil fuel investments in the country amid criticism over its Israeli operations, the Ekonomim news website reported.
In a statement to Turkey’s Public Disclosure Platform (KAP) on Friday, Zorlu Enerji said the sale follows negotiations announced earlier.
The company described the divestment as part of its “sustainability strategy” to exit fossil fuel assets and focus on renewable energy.
The transaction requires approval from Dorad’s board and regulatory authorities. Existing Dorad shareholders hold pre-emption rights for 15 percent of Zorlu’s stake, and if not exercised, the full 25 percent will transfer to the Israel-based Phoenix Group.
Dorad, located south of Ashkelon, is one of Israel’s largest power plants, operating on natural gas and diesel. The Israeli government has a 37.5 percent stake in the plant through the state-controlled entity Kinet.
In its statement to KAP, the company reiterated its commitment to focusing on renewable energy investments while divesting from fossil fuel assets. “We will continue our investments in renewable energy sources,” Zorlu said.
Unlike its earlier sale of stakes valued at $34 million in the natural gas power plants in Ashdod and Ramat Negev, Zorlu did not disclose the financial terms of the Dorad deal.
The purchase comes amid scrutiny in Turkey over Zorlu Enerji’s ties to Israel due to the Israeli war on Gaza, which paused after a ceasefire announced in January.
Dorad Energy, an 875-megawatt natural gas plant operational since 2014, supplies electricity to Israel’s national grid, including military bases, under a contract with Israel’s Defense Ministry renewed in 2024, according to The Jerusalem Post.
Zorlu Enerji’s involvement in Israel began in 2003 as a minority partner in the Ashdod and Ramat Negev natural gas plants, with its stake in Dorad Energy dating back to before 2007. Dorad was once seen as a symbol of Turkish-Israeli energy cooperation.
With the sale of its Dorad stake announced Friday, Zorlu completes its exit from fossil fuel investments in Israel in the wake of protests it faced for supplying electricity to Israeli Defense Forces (IDF) bases during the war on Gaza.
The continued financial relationship between the Israeli government and Zorlu Holding raised questions during Israel’s war on Gaza, prompting protests against the company in Turkey.
Ankara announced last May that it had suspended all trade with Israel but the government has faced frequent accusations for continuing trade with Israel indirectly.
Zorlu Holding is chaired by Ahmet Nazif Zorlu, who has close ties to President Recep Tayyip Erdoğan.