CHARLOTTE, N.C., June 27, 2016 /PRNewswire/ -- Blue Sphere Corp. (OTCQB: BLSP) (the "Company" or "Blue Sphere"), a clean-tech independent power producer that develops, manages and owns waste-to-energy facilities globally, reported today on the valuable incentive program offered by the Dutch government for renewable energy projects. As Blue Sphere is actively seeking projects in the Netherlands, the Company finds these incentives to be very valuable in evaluating these projects.
The SDE+ program is an incentive for the production of renewable energy in the Netherlands. There are two periods for SDE+ subsidy applications in 2016, one being in spring and the other in autumn (October).
What is the SDE+
The SDE+ is an operating (feed-in-tariff) subsidy. Producers receive a guaranteed payment (subsidy) for the energy they generate from renewable sources (as opposed to funding for any equipment or services they need to make this production possible, as in the case of an investment subsidy). The SDE+ is aimed at companies and (non-profit) organizations intending to produce renewable energy.
The SDE+ compensates for the difference in price between fossil and renewable energy over a period of 8, 12 or 15 years, depending on the type of technology used. Similarly, the amount of the subsidy depends on the technology used and the amount of renewable energy produced.
The SDE+ Contribution
The cost price for the production of renewable energy is recorded in the base amount for the technology. The earnings for fossil energy are recorded in the correction amount. The SDE+ compensates for the difference between the cost price of renewable energy and the earnings of fossil energy. The maximum SDE+ contribution is thus equal to the base amount minus the correction amount.
The SDE+ contribution received depends on energy price trends. If the energy price goes up, the project gets a lower SDE+ contribution but the energy purchaser will pay more. If the energy price falls the project will get a higher SDE+ contribution but will receive less from the energy purchaser.
The subsidy is granted by the Netherlands Enterprise Agency and its grant is the maximum subsidy over the entire period of the subsidy (8, 12 or 15 years). The SDE+ subsidies are available for the production of Renewable Electricity, Renewable Gas and Renewable Heat or Combined Heat and Power (CHP). Among other technologies, Biomass is one of the accepted categories.
"We are providing this information to help illustrate the growing demand for renewable energy sources in various countries around the world. We see these incentives as a key indicator of the growth potential in the waste-to-energy marketplace. Blue Sphere intends to fully take advantage of these types of incentives in the countries that it operates as they become available," said Shlomi Palas, the Company's CEO.
About Blue Sphere Corporation
Blue Sphere Corporation, is a diversified independent power producer that develops, owns, and operates clean-tech, waste-to-energy facilities in the United States and abroad. The company primarily converts organic waste into electricity, but also has the ability to generate heat, natural gas and organic byproducts through various technologies.
Blue Sphere facilities; eliminate waste that would normally be disposed in landfills, reduce greenhouse gas emissions and protect water quality, helping to solve important global environmental issues. Blue Sphere is headquartered in Charlotte, North Carolina and has operations in the United States and Europe. For further information about Blue Sphere, please visit the Company's website: www.bluespherecorporate.com.
This press release contains certain forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995), which are subject to risks and uncertainties and may change at any time. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties and other factors including, without limitation, (i) uncertainties regarding general economic and market conditions, (ii) uncertainties regarding changes in the Clean tech sector, (iii) uncertainties regarding implementation of the Company's business strategy, and (iv) other risk factors as outlined in the Company's periodic reports, as filed with the U.S. Securities and Exchange Commission. As such, there is no assurance that the initiatives described in this press release will be successfully implemented or meet expectations. Forward-looking statements in this document speak only as of the date on which such statements were made, and we undertake no obligation to update any such statements that may become untrue because of subsequent events.
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SOURCE Blue Sphere Corporation