Alternus Clean Energy Inc (NASDAQ:ALCE) shares are shooting higher after the company entered into a joint venture with Acadia Energy to co-develop 200 megawatts (MW) of Sustainability Hub microgrid projects in New York State.

The partnership will leverage Alternus' expertise in renewable energy development and operations with Acadia's established track record and pipeline of projects in the region.

The joint venture will focus on developing and operating a portfolio of microgrid projects over the next 2-3 years.

The Acadia microgrids will combine renewable energy and storage and offer green, resilient power to support local economic growth and sustainability.

Under the terms, Alternus will hold a 51% majority ownership stake in the projects, while Acadia will lead the development efforts.

The two companies will share the project costs and equity requirements equally, putting in 50% of the required financing.

The projects in the joint venture are expected to begin achieving commercial operations within two years.

"Acadia's impressive pipeline of renewable, utility-scale energy projects is precisely the type of asset portfolio we are targeting as we expand our footprint in the U.S. market," said Vincent Browne, CEO of Alternus.

Price Action: ALCE shares are trading higher by 12.23% at $0.4754 on the last check Thursday.