Bluesphere Receives $15,000,000 Term Sheet for Full Equity Financing of 3.2 MW Johnston, Rhode Island Biogas Project
Bluesphere Corp. (OTCBB: BLSP) (the "Company" or "Bluesphere"), a clean energy company that develops, manages and owns waste-to-energy projects, announced the receipt of a term sheet from Energy Power Partners ("EPP") for full equity financing of over $15 million for its 3.2 megawatt (MW) waste-to-energy project in Johnston, Rhode Island. The facility will generate clean electricity from biogas derived from organic waste.
Bluesphere and EPP have agreed to enter into a final, definitive agreement by no later than August 30, 2014 pursuant to which the funds will be made available to the Company in cash for the construction and implementation of the Johnston project subject to completion of final due diligence by EPP.
"We already launched the Johnston project based on our own funds and other agreements entered into for the financing of this anaerobic digestion facility. However, EPP is an extremely desirable partner not only for its expertise and experience in implementing projects of this nature, but also because it is offering to finance this project with 100% equity. Not having debt creates greater cash flow and minimizes restrictive covenants.
Bluesphere will maintain a meaningful equity stake in the project, while also earning project management fees and profit-sharing with build-in performance incentives. This is another huge milestone in the development of this project," stated Bluesphere CEO Shomi Palas. "We have started the Johnson project on time and we anticipate reaching commercial operations and delivering power by December 2015."
Bluesphere recently announced it signed a Letter of Intent with a company in the recycling and waste industries which will supply between 100-200 tons of organic waste per day to the Johnston waste-to-energy facility. Agreements and other Letters of Intent are in place for a 15 year electricity purchase agreement, site lease with purchase option, compost off-take agreement, and EPC contractor.
Bluesphere generates electricity from biogas derived from organic waste, which is mostly food waste, and sells this electricity to leading electric companies through long-term power purchase agreements. Waste-to-energy is one of the fastest growing segments in the renewable energy markets. According to SBI Energy, the thermal and biological segments reached $6 billion in 2012 and will reach $29 billion by 2022.
About Energy Power Partners
Energy Power Partners is a private equity fund manager for institutional investors wanting to take advantage of growing renewable investment opportunities in United States.
EPP targets small to medium-sized base load renewable power projects with contracted cash flows and long term capital appreciation. The partners of the team are among the most experienced in the renewable industry and have collectively invested over $12 billion in 91 relevant renewable investments, with a 25 year track record of successful equity and debt investment across a diverse range of renewable technologies. For more information, visit http://www.energypowerpartners.com.
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.
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.