EVEN YEHUDA, Israel, September 10, 2014 /PRNewswire/ —
Bluesphere Corp. (BLSP) (the “Company” or “Bluesphere”), a clean energy company that develops, manages and owns waste-to-energy projects, announced today it just signed a memorandum of understanding (“MOU”) to develop a 5 MW biogas project together with ESC an Israeli State-owned company in Israel.
The MOU contemplates that ESC the Israeli State-owned company will lease a suitable site for the project and arrange the required amounts of food waste for use as feedstock and will perform maintenance service for the project.
According to Israeli law, the Israel Electric Company is obligated to purchase the power produced from this project and, as such, a long-term power purchase agreement at a favourable rate will be entered into over the coming months.
Bluesphere will be responsible for developing the project, permitting, project finance and operation for the 20-year life of the project. Bluesphere intends to work with Austep S.p.A., a premier Italian EPC contractor with dozens of similar facilities in operation around the world and its EPC contractor on Bluesphere’s US biogas projects.
After the project is in operation for three years, ESC the Israeli State-owned company has the option to purchase up to a 50% ownership stake in the project at then fair market value.
“It is a tremendous honour to have been selected from all the competition in Israel to implement this project. It marks the start of our Israeli strategy, which can become a major driver of value for Bluesphere. Israel offers us a unique opportunity insofar as power purchase agreements are awarded to biogas projects as a matter of law. This is normally one of the hardest parts of any project’s development and in Israel we have the power purchase agreement as a given. Moreover, our counterpart will arrange to deliver source-separated organic municipal waste, which is a great feedstock for the project. We have carefully implemented our intended strategy of developing promising projects around the world and have now found a big and lucrative project to start with in Israel,” stated Bluesphere CEO Shlomi Palas. “We are already in discussions with financial partners for the project’s financing. In addition there are more opportunities in Israel to implement biogas projects and we are evaluating a number of them.”
About Bluesphere Corporation
Bluesphere Corporation is a company in the cleantech sector as a waste-to-energy project Integrator. Bluesphere 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 http://www.bluespherecorporate.com
