Blue Sphere Signs a Definitive Project Agreement for a 5.2 MW Waste to Energy Plant in North Carolina and a 3.2 MW Waste to Energy Plant in Rhode Island
EVEN YEHUDA, Israel, October 24, 2012 /PRNewswire/ –
Blue Sphere Corp. (OTCBB: BLSP) (the “Company” or “Blue Sphere”), a company in the
Cleantech and Waste to Energy sectors as a project integrator, is pleased to announce that
it has signed a definitive project agreement to implement two waste to energy projects – a
5.2 MW plant in North Carolina and a 3.2 MW plant in Rhode Island. The total revenue from
these projects is projected at $150,000,000 over the next 15 years.
In this connection, Blue Sphere has entered into a joint venture with Biogas Nord AG,
a German company and one of the world’s leading EPC and waste to energy technology
companies with over 400 waste to energy installations in operation around the world
(“Biogas Nord”). Biogas Nord will work together with Blue Sphere to implement these two
projects and to implement another 50 MW of waste to energy projects in the United States
over the next few years, as Blue Sphere has an option to implement another 10 projects.
Biogas Nord will also train the joint-venture company to perform service and maintenance,
which will lead to additional significant revenue from service and maintenance contracts.
Each of the project sites already has a signed, 15-year power purchase agreement with
two of the largest utilities in the United States. Blue Sphere is in the process of
finalizing the other elements of the project, including feedstock agreements, land, debt
and equity financing and tax credit monetization.
The waste to energy market in the United States and around the world is growing
exponentially. There is an endless supply of waste that requires a solution. Currently,
most waste is landfilled or disposed of in environmentally unfriendly ways. Our solution
is environmentally friendly and reduces global warming. Additionally, in the US, these
projects benefit from tax credits that effectively return 30% of the project cost to the
investor within weeks after the project has been commissioned. In Europe and elsewhere
around the world, these projects benefit from high feed-in-tariffs. In either case, the
internal rates of return to be achieved in implementing these projects can be 30% and
“This represents a major break-through for the Company. We made a strategic decision
to enter the waste to energy market in the end of 2011 and these projects are the first of
many we intend to implement over the next couple of years. Our joint venture with Biogas
Nord gives us the technological know-how and advantage in implementing any waste to energy
project wherever it may be located. Biogas Nord is also training us in service and
maintenance, so, after we are comfortable with our skills, we will enter into this
business, as well. We already have an option on 10 more sites in the United States and are
adding additional waste to energy sites in the US and around the world.” said Shlomi
Palas, CEO of Blue Sphere Corp.
About Blue Sphere Corp.
Blue Sphere Corp. is a company in the cleantech sector as an Emission Reduction
Project Integrator. Blue Sphere develops projects for greenhouse gas emission reduction
and renewable energy production. The Company aspires to become a key player in the global
carbon reduction market, helping enterprises with high pollution emissions achieve their
green goals. For further information please visit the Company’s website
This press release contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and
as that term is defined in the Private Litigation Reform Act of 1995, which are subject to
risks and uncertainties and may change at any time. Among these are: (i) uncertainties
regarding our ability to obtain adequate financing on a timely basis including financing
for the projects described in this release and other specific projects, (ii) uncertainties
regarding the future of the Kyoto Protocol and binding greenhouse gas warming commitments
of industrialised countries, (iii) uncertainties regarding the market for and value of
carbon credits including carbon credits associated with industrial gases, as well as the
duration and amount of estimated emissions from specific projects, (iv) political and
governmental risks associated with the foreign countries in which we operate, (v)
unanticipated delays associated with project implementation including designing,
constructing and equipping projects, as well as delays in obtaining required host country
and United Nations approvals, (vi) the development stage of our business and (vii) our
lack of operating history. As such, there is no assurance that the initiatives described
in the press release will be successfully implemented or meet expectations.
The Company assumes no obligation to update the information in this release.
For further information please contact Sam White at +1-888-309-9088 or
SOURCE Blue Sphere Corp.