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BLUE SPHERE PROVIDES HOLLAND PROJECT UPDATE Sterksel, Netherlands Development Set to Move Forward - Financing In Place

CHARLOTTE, NC / ACCESSWIRE / March 21, 2019 / Blue Sphere Corporation (OTC PINK: BLSP) (the "Company" or "Blue Sphere"), a clean-tech independent power producer that develops, owns and manages waste-to-energy facilities globally, today provided an update on activities for its waste-to-energy project in Sterksel, Netherlands.

Financing Completed

Blue Sphere has completed the project financing for the development in Sterksel, allowing the Company to proceed into the construction phase of the landmark project. The financing for the project was provided by BNG Bank N.V., ETFF, BNG Bank, N.V., Nationaal Groenfonds and Helios Energy Investments 3, LP, all financing documents have been signed and a financial closing date is being scheduled.

BNG Bank N.V. has provided a total of €29,254,900 (approximately USD $33,161,102) in the form of Senior Term Loans, VAT Loans, Bank Guarantees and a Working Capital Facility. ETFF, BNK Bank N.V and Nationaal Groenfonds have provided a total of €6,421,550 (approximately USD $7,278,974) in Junior Term Loans and Blue Sphere's longtime partner Helios Capital, through their Helios Energy Investments 3, L.P. has provided an equity investment totaling €3,250,000 (approximately USD $3,683,949). BlueSphere shall retain a sixty percent (60%) equity ownership stake in the project.

Other Activities at Sterksel

Blue Sphere has contracted with three separate providers of feedstock that will provided pig manure and green waste to fuel the digesters. As previously stated 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, 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 €45,175,850 million (approximately USD $51,279,784).

The project will also generate revenues from the sale of "Green Certificates", sometimes referred to as a "REC" (renewable energy certificate) or "ROC" (renewable obligation certificate). The total sales from generated by Green Certificates will be approximately €21,242,673 (approximately $24,111,495).

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 $172,221,080) 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.

EPC Remains in Place

On December 5, 2017, Blue Sphere Corporation (the "Company"), through its wholly-owned subsidiary in the Netherlands, Blue Sphere Brabant B.V. ("Blue Sphere Brabant"), entered into a Turnkey Agreement for the Design, Construction and Delivery of a Biogas Plant, dated as of December 4, 2017 (the "EPC Agreement") with Anaergia B.V., a private company with limited liability in the Netherlands ("Anaergia"). Pursuant to the EPC Agreement, Anaergia will perform the design, supply, engineering, procurement, assembly, commissioning and delivery of a biogas plant (the "BSB Facility") with an upgraded biomethane design output capacity of 24,000,000 Nm3/year (or respectively 2,923Nm³/h), for the fixed price of €22,500,000 payable in accordance with scheduled milestones, with the final payment becoming due upon delivery of a final completion certificate. Anergia shall also provide O&M services to Blue Sphere.

Based on the financial models established for financing parameters, this project is projected to generate approximately €215,749,892 (approximately USD$244,669,870) in total revenues over the lifetime of the project, producing approximately €75,547,852 (approximately USD$85,674,588) of EBITDA over the same period. Construction can begin as soon as the second half of April, 2019 and continue for sixteen (16) months. Once construction is completed and approximate four (4) month ramp up period will bring the digester up to capacity.

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 completion of the financing needed to begin construction of this landmark project is a testament of the hard work and drive of all Blue Sphere team members. This project has been a long time in coming and I am very proud of our team. The team at Helios Capital has worked with Blue Sphere through thick and thin as they understand the value we are creating in our projects. The fact that they are once again investing in a Blue Sphere project provides me with a special sense of pride in the fortitude of the Blue Sphere team."

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.

Forward-Looking Statements

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.

SOURCE: Blue Sphere Corporation



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