Blue Sphere Signs an Emissions Reduction Purchase Agreement With Vattenfall, One of Europe's Largest Producers of Power and Heat
EVEN YEHUDA, Israel, January 30, 2012 /PRNewswire/ --
Blue Sphere Corp. (OTCBB: BLSP) (the "Company" or "Blue Sphere"), a company in the Cleantech sector as an emission reduction and renewable energy project integrator, is pleased to announce that Vattenfall Energy Trading, the trading unit of one of Europe's biggest power and heat producers ("Vattenfall"), has signed an emissions reduction purchase agreement ("ERPA") with the Company's subsidiary, Puresphere Ltd., to purchase carbon credits from the Company's landfill projects in Ghana and Nigeria through the end of 2020. The ERPA also includes confirmation of the inclusion of the Company's first landfill site - the Oti Sanitary Landfill in Kumasi, Ghana. The Company is in the process of adding another landfill site to the ERPA - the Sofokrom Landfill Site in Takoradi, Ghana.
Vattenfall will also advance the costs for the registration expenses of the Company's landfill gas programme of activities and the inclusion of up to nine individual landfill sites in Ghana and Nigeria.
Blue Sphere has five signed landfill projects in Ghana and has identified several other promising sites in Ghana and Nigeria that it hopes to sign in 2012. Four of these sites are ready to commence landfill gas extraction projects within the framework of the Kyoto Protocol. The fifth site will be ready to commence a project in 2013 or 2014. Four of these sites also have the potential to produce renewable energy.
Blue Sphere has already secured full funding for the implementation of two sites, which have already started the registration process with the executive board of the clean development mechanism in Bonn, Germany. The party investing the funds is also prepared to consider funding the other sites, as well.
Blue Sphere believes that registration and commissioning of the first two sites will be complete in calendar year 2012, which should result in the receipt of the first revenue from these projects in 2013.
Now that the ERPA is signed, Blue Sphere believes that it has all elements in place for successful project implementation: financing, an engineering company with substantial experience in landfill projects in place to design, build, install and operate the landfill gas extraction and power generation systems and a buyer for the projects' carbon credits. Additionally, Blue Sphere is currently in the process of negotiating power purchase agreements for the projects' renewable energy to be produced starting in 2013 or 2014.
"This represents a major break-through for the Company. Vattenfall is one of Europe's most stable and financially sound companies and has tremendous experience and expertise in developing and bringing carbon credit projects to fruition. We now have eight years of revenue from these projects secured, not to mention one of the best strategic partners in the world for implementing carbon credit projects. Vattenfall will purchase carbon credits from the projects until 2020. Bluesphere projects receipt of more than $15 million over such period based on its estimates of carbon credit volumes and prices to be received. As these projects receive carbon credits for 21 years, any carbon credits we sell after the expiration of this agreement will result in additional revenue to Blue Sphere," 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
About Vattenfall Energy Trading
Vattenfall Energy Trading is the central trading hub of the Swedish utility Vattenfall and one of the leading energy trading companies in Europe. It trades electricity, gas, coal, oil, freight and emissions rights as well as takes responsibility for a diversified sourcing of power, fuels and carbon credits.
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 888-309-9088 or firstname.lastname@example.org.
SOURCE Blue Sphere Corp.