Blue Sphere Announces Receipt of a Signed Commitment to Provide $7.5 Million in Equity Financing In Respect Of Its 5.2 MW Organics to Energy Project in NC
The Charlotte project is a 5.2 MW organics-to-energy anaerobic digester, which will utilize food waste to produce electricity.
EVEN YEHUDA, Israel, July 22, 2013 -- 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, is pleased to announce that it has received a signed term sheet from a leading environmental finance fund (the "Fund"), to provide $7.5 million in equity financing for its Charlotte, North Carolina project. The Charlotte project is a 5.2 MW organics-to-energy anaerobic digester, which will utilize food waste to produce electricity. Blue Sphere has counter-signed and accepted the commitment for equity financing in the term sheet. This commitment, along with the recently announced debt commitment from Caterpillar Financial Services Corp., constitutes 100% of the financing required for the project.
Blue Sphere, along with its partner, Biogas Nord, AG of Germany, is acting as the integrator of the Charlotte project through its Joint Venture company, Bino Sphere. Biogas Nord has designed and built almost 400 waste-to-energy plants in Europe, Africa and the Middle East. With full project financing now committed, Blue Sphere is in the process of completing all closing conditions, including investment tax credit monetization, feedstock supply and permits. Blue Sphere expects to break ground on the Charlotte project in the 3rd quarter of 2013. Upon the completion of the Charlotte project, expected in the third quarter of 2014, Blue Sphere will continue as project manager and, when the Fund achieves a 20% internal rate of return, retain a 37.5% ownership position in the Charlotte project.
Shlomi Palas, CEO of Blue Sphere commented, "The equity commitment from the Fund means that, together with the debt commitment from Caterpillar Financial Services, 100% of the project financing is now committed to our 5.2 MW organics-to-energy project. We are now working on finalizing the definitive agreements to begin the disbursement of cash and commence construction. We are required to close the equity financing by the beginning of September 2013. Commencement of construction will allow Blue Sphere to begin earning revenue pursuant to the terms of our joint venture with Biogas Nord. Once the project is commissioned, approximately 12 months from the start of construction, Blue Sphere will earn operating revenue from the sale of contracted electricity into the local grid owned by Duke Energy, Inc., tipping fees for the organic waste the project will receive, as well as ongoing management fees. Blue Sphere is also making progress on the implementation of its second project, a 3.2 MW organics-to-energy anaerobic digester project in Rhode Island. Blue Sphere could break ground on this second project by the end of 2013."
About Blue Sphere Corp.
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