Blue Sphere Releases Its Annual Letter To Shareholders

EVEN YEHUDA, Israel, Feb. 13, 2014 /PRNewswire/ -- Blue Sphere Corp. (OTCBB: BLSP) (the "Company" or "Blue Sphere"), a company in the Cleantech sector as an organics-to-energy and clean energy project integrator, has released a letter to shareholders discussing the Company's results for calendar year 2013 and the start of 2014.

Dear Fellow Shareholders:

Highlights To-date

After a busy 2013 and first several weeks of 2014, we now expect to start construction on our first two biogas plants in the United States in Q2 or Q3 of 2014 and are making significant progress on our non-US projects and business development.

We started 2013 with a few signed projects in very early development stages and leads on a number of other projects.

We now have signed projects in the final development stage and are entertaining offers from some of the biggest players in the organics to energy market for strategic partnerships.

With respect to our North Carolina project, we have gone from a signed project agreement to having full financing in place, a site, an EPC (engineering, procurement and construction) contractor and plant components under construction:

• 5.2MW organics to energy project in Charlotte, NC
  
  October 2013 - signed equity and debt financing agreements
  May 2013 - signed site purchase agreement
  June 2013 – Jan 2014 - four signed feedstock supply letters of intent and one feedstock supply agreement
  May 2013 - signed compost off-take agreement
  February 2014 - a finalized EPC agreement
  January 2014 - applications in place for major permits
  December 2013 - plant components already under construction
  October 2012 - signed power purchase agreement
  January 2014 - signed grid interconnection agreement
  December 2013 - $6.5 million renewable energy tax credit safe-harboured

In respect of our Rhode Island and other projects, we have gone from signed project agreements to the final stages of development:

• 3.2MW organics to energy project in Johnston, RI
  
  June 2013 - signed equity and debt term sheets
  September 2013 - signed 15-year lease agreement with an option to extend for six years
  April 2013 - one signed feedstock supply agreement and one feedstock supply letter of intent
  May 2013 - signed compost off-take agreement
  February 2014 - permit applications under preparation
  December 2013 - plant components already under construction,
  February 2014 - EPC contractor in place
  February 2014 - signed revised and amended power purchase agreement
  December 2013 - $4.5 million renewable energy tax credit safe-harboured

• 10MW organics to energy project in Accra, Ghana
  
  September 2013 - signed project agreement
  February 2014 - feedstock supply agreements under negotiation
  February 2014 - 25-year lease agreement under negotiation
  February 2014 - EPC contractor in place

•  1MW Landfill gas to energy project in Kumasi, Ghana
  
  September 2013 - signed revised project agreement
  Q2 2014 - three-month pump test to commence in Q2 2014
  December 2012 - permits in place except for the license to produce power (which is under negotiation)
  January 2012 - carbon credit off-take agreement signed with Vattenfall
  February 2014 - power purchase agreement under negotiation at a price per kwh of over USD 15 cents

We are also pursuing development of numerous other organics to energy projects, as well as cultivating potential strategic partnerships with industry leaders.

• Other Projects
  
  - Additional organics to energy projects in US are under active negotiation
  - Additional organics to energy and landfill gas to energy projects in Africa are under active negotiation
  - Organics to energy projects in Europe are under active negotiation
  - We have partnered with a reputable EPC contractor with respect to several organics to energy projects in Israel, which are under active negotiation

• Strategic Partnership
  
  - Offer from a large, North American EPC contractor to collaborate on a range of projects in Israel and Africa
  - Offer from a large, European EPC contractor and biogas plant operator to collaborate on a number of projects in Europe

Future

We are working now and will continue to work toward ground-breaking and construction commencement for both of our US projects for as early as possible in 2014.  The actual dates will depend on receipt of permits.  We are also working toward closing financing for our RI project, which will occur when definitive agreements are finalized, which is underway. 

We expect to receive our first revenue prior to commissioning these projects when we test-run the US Projects to refine the interconnection and power delivery to the utility-buyers. 

Implementation of the US Projects is our first priority.

In parallel, we are devoting significant resources toward business development activities in the United States, Europe, Africa, Israel and elsewhere to implement similar organics-to-energy projects.  We have already received offers for sites in the United States, Europe and elsewhere, which are in advanced stages of development.

Thank you for your continued support. 

Sincerely,

Shlomi Palas, CEO

For further information please contact Mark Radom at 972 52 798 0831 or [email protected].

About Blue Sphere Corporation

Blue Sphere Corp. is a company in the Cleantech sector as a waste-to-energy project Integrator. Blue Sphere develops waste-to-energy and other renewable energy projects. The Company aspires to become a key player in the global waste-to-energy and renewable energy markets. For further information please visit the Company's website www.bluespherecorporate.com.  

Forward-Looking Statements 

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. These statements are only predictions and involve known and unknown risks, uncertainties and other factors including, without limitation, (i) uncertainties regarding our ability to obtain adequate financing on a timely basis including financing for specific projects, (ii) the financial and operating performance of our projects after commissioning, (iii) uncertainties regarding the market for and value of carbon credits and other environmental attributes, (iv) political and governmental risks associated with the 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 government permits and 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.

SOURCE Blue Sphere Corp.