Blue Sphere Corp.: CEO Update Letter

EVEN YEHUDA, Israel, October 16, 2013 /PRNewswire/ --

Blue Sphere Corp. (OTCBB: BLSP) (the "Company" or "Blue Sphere"), a company in the cleantech sector as an organics-to-energy and clean energy project integrator, is pleased to announce the following update regarding its projects in North Carolina, Rhode Island, Israel, Ivory Coast and Ghana and its pipeline of new projects.

Blue Sphere is striving to become a leader in the organics to energy and clean energy space by securing the rights to implement highly-lucrative projects in the United States and worldwide.  The projects currently in Blue Sphere's portfolio amount to almost 36 MW of annual power production capacity.   There are also 24 MW of power production capacity in various stages of negotiation in our pipeline.    

North Carolina

Our North Carolina project is expected to generate 5.2 MW of electricity from organic waste from the Charlotte metropolitan area.  To-date, the project has in place

• 15-year power purchase agreement
• Debt commitment letter
• Equity term sheet
• Site purchase agreement
• Compost off-take agreement
• Zoning permit
• EPC contractor
• Feedstock letters of intent

The environmental and construction permit applications are under preparation.

The next step is to sign on the debt and equity agreements, which are in the final stages of negotiation.  We expect to sign these agreements in the very near future.  

Rhode Island

Our Rhode Island project will generate 3.2 MW of electricity from organic waste from the Charlotte metropolitan area.  To-date, the project has in

• 15-year power purchase agreement with a 6-year option to extend
• 15-year lease on the project site with an option to purchase
• Equity term sheet
• Debt term sheet
• Compost off-take agreement
• EPC contractor
• Feedstock letters of intent

We expect to begin environmental and construction permit applications in Q4 2013.

The next step is to receive a debt commitment letter.  The same party that provided it for our NC project is interested in providing it for the Rhode Island project.  We will then move to sign on the debt and equity agreements, which will be based on what we sign for our North Carolina project.

Israeli Projects

We have identified seven organics to energy projects across Israel that will each generate 2-4 MW of power.  We are in the process of securing the project sites, feedstock and permits.  We have a signed agreement with an investor to finance the development costs of these seven projects.

Ghanaian Projects

We have two signed projects in Ghana:  (i) the Oti Sanitary Landfill in Kumasi, which we estimate at 1MW, and (ii) the Accra Anaerobic Digester Project, which we estimate at up to 10 MW, which will generate power from pre-sorted organic municipal solid waste.  We are in the process of securing power purchase agreements for these projects and guarantees from the Multilateral Guarantee Agency of the World Bank ("MIGA") and in discussions with sources of finance.

Ivory Coast

We have a signed landfill gas to energy project at the Akouedo landfill site that is expected to generate up to 3 MW of power.  We have performed a feasibility study and are in the process of securing a power purchase agreement and guarantee from MIGA and in discussions with sources of finance.

Pipeline of New Projects

We are in advanced stages of negotiations in respect of the following projects:

• acquisition of an existing 11 MW Organics to Energy Anaerobic Digester Plant in Europe
• 7 MW Organics to Energy Anaerobic Digester Plant in the US Territories
• 1 MW landfill gas to energy project in Nigeria
• 5 MW Organics to Energy Anaerobic Digester Plant in Ivory Coast

We are in initial stages of negotiation and otherwise considering a number of other organics to energy and landfill gas to energy projects in the United States and worldwide.

"Our first priority is to sign the financing agreements in respect of our North Carolina project, which we believe is achievable in the coming days.  We will then move on to our Rhode Island and other projects.  Each of our anaerobic digester projects comes with a performance guarantee backed by an insurance policy from a reputable insurance company and a performance bond guaranteeing the full cost of construction.  We will make further announcements as events unfold.  We believe that the organics to energy industry is set to grow exponentially in the United States and worldwide as countries pass ever-stricter legislation requiring renewable energy production for organic waste.  This positions us at the forefront of a long-term trend" said Shlomi Palas, the Company's chief executive officer.

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. Among these are: 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 +972-52-888-0485 or [email protected].

SOURCE Blue Sphere Corp.