Holland Project Gets Property Confirmation and Signs $65 Million Definitive Agreement for Biogas Gas Off-Take
CHARLOTTE, N.C., Oct. 25, 2017 /PRNewswire/ -- Blue Sphere Corporation (BLSP) (the "Company" or "Blue Sphere"), a clean-tech independent power producer that develops, owns and manages waste-to-energy facilities globally, provided an update today on activities for its development in Sterksel, Netherlands.
Blue Sphere announced that its engineering subcontractor Dura Vermeer, has completed its on-site visit and analysis, positively confirming that the property meets the standards necessary for the construction of its anaerobic digester waste-to-energy facility. This is an important milestone for the progress of this development project, allowing the Company's wholly-owned subsidiary, Blue Sphere Brabant B.V., to move forward with further activities relating to the construction and development of this facility (the "Netherlands Facility").
Other Activities at Sterksel
On September 19, 2017, Blue Sphere filed a Current Report on Form 8-K with the U.S. Securities and Exchange Commission disclosing that the Company had entered into a material definitive agreement for the Purchase and Supply of Green Gas with GasTerra B.V., a major gas wholesaler based in the Netherlands (the "September 2017 Form 8-K"). Blue Sphere Brabant agreed to supply, and GasTerra agreed to purchase, biogas that has been re-processed into natural gas ("Green Gas") from the Netherlands Facility in Sterksel for a period of twelve (12) years, from January 1, 2019 through January 1, 2031, with the possibility to renew upon mutual agreement once the term of the agreement has come to an end.
Under the Gas Off-Take Agreement, Blue Sphere Brabant will supply a maximum of 3,500 cubic meters of Green Gas per hour. The Company anticipates the value of the Gas Off-Take Agreement during the initial twelve (12) year term to be approximately €55 million (approximately USD $65,744,250).
For more information regarding the Agreement for the Purchase and Supply of Green Gas 2019, please refer to the September 2017 Form 8-K.
On December 13, 2016, Blue Sphere reported on Current Report on Form 8-K that the Company's wholly owned subsidiary, Blue Sphere Brabant B.V., won a grant (the "Grant") to sell renewable gas on a per MWh basis to Rijksdienst voor Ondernemend Nederland ("RVO") under the Renewable Energy Production Incentive Scheme, or "SDE" (the "December 2016 Form 8-K"). The Grant provides for the sale of up to 234,466.589 MWh per year, for a maximum total value of the Grant equal to €151,934,350 (approximately USD $178,781,149) paid over twelve (12) years, from the date the Netherlands Facility begins production.
This development will also qualify for the sale of Green Certificates (environmental incentives) and Carbon Credits in addition the SDE grant and offtake sales.
Shlomi Palas, the Blue Sphere's CEO, commented, "We are very excited to be taking the next steps in the development of this important project for Blue Sphere. The project is currently the largest anaerobic digester facility being developed in all of Europe and I are very proud of the progress that our team is making."
About Blue Sphere Corporation
Blue Sphere Corporation, is a diversified independent power producer that develops, owns, and operates clean-tech, waste-to-energy facilities in the United States and abroad. The company primarily converts organic waste into electricity, but also has the ability to generate heat, natural gas and organic byproducts through various technologies.
Blue Sphere facilities; eliminate waste that would normally be disposed in landfills, reduce greenhouse gas emissions and protect water quality, helping to solve important global environmental issues.
Blue Sphere is headquartered in Charlotte, North Carolina and has operations in the United States and Europe.
For further information about Blue Sphere, please visit the Company's website: www.bluespherecorporate.com.
This press release contains certain forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995), which are subject to risks and uncertainties and may change at any time. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties and other factors including, without limitation, (i) uncertainties regarding general economic and market conditions, (ii) uncertainties regarding changes in the Clean tech sector, (iii) uncertainties regarding implementation of the Company's business strategy, (iv) uncertainties regarding the development of the Netherlands Facility; (v) uncertainties regarding the operation of the Netherlands Facility once it commences operations; and (iv) other risk factors as outlined in the Company's periodic reports, as filed with the U.S. Securities and Exchange Commission. As such, there is no assurance that the initiatives described in this press release will be successfully implemented or meet expectations. Forward-looking statements in this document speak only as of the date on which such statements were made, and we undertake no obligation to update any such statements that may become untrue because of subsequent events.
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