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 higher.
"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 http://www.bluespherecorporate.com
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.
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SOURCE Blue Sphere Corp.