EVEN YEHUDA, Israel, September 10,
2014 /PRNewswire/ --
Bluesphere Corp. (OTCBB: 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
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.
For further information please contact Mark Radom at +972-52-798-0831 or
info@bluespherecorporate.com.
SOURCE Blue Sphere Corp.