Blue Sphere Corporation announces closing of joint venture for 3.2MW biogas generation facility
April 20, 2015
By Marketwired/Bluesphere Corp.
April 20, 2015 - Blue Sphere Corporation, a clean energy company that develops, manages and owns waste-to-energy projects, announced today the closing of a joint venture with an affiliate of York Capital Management to develop, construct and operate a 3.2 MW biogas generation facility in Johnston, R.I., under the management of Entropy Investment Management.
Under the terms of the joint venture, Blue Sphere owns 22.75 per cent of the project and received an initial payment of $1,481,900 in cash at the closing. Two payments of $562,500 each are expected to be paid later this year upon the project achieving mechanical completion and commercial operation milestones.
Blue Sphere CEO Shlomi Palas noted that this is the second closing for the Company in 2015.
“We closed on a joint venture to develop a second significant food waste to energy facility in the United States, which, under the current construction timeline for the Project, is anticipated to commence production and sale of electricity during the fourth quarter of 2015,” said Palas. “We booked our second round of revenue in the history of the company from the cash payment received at the closing of the joint venture, and upon successful completion of the project, expect to earn regular revenue from the sale of electricity, compost and feedstock tipping fees.”
Orbit Energy, Inc. (“Orbit”), based in Raleigh, N.C., co-developed the project. Blue Sphere has made arrangements for the inclusion of two of Orbit’s high solid anaerobic digester units to work in parallel with the digesters of Austep S.p.A., the project’s EPC contractor, subject to the fulfillment of certain conditions.
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