SOURCE: Bluesphere Corp

March 12, 2015 08:00 ET

Blue Sphere Corporation Letter to Shareholders

CHARLOTTE, NC--(Marketwired - Mar 12, 2015) - Blue Sphere Corp. (OTCQB: BLSP) (the "Company" or "Blue Sphere"), a company in the Cleantech sector as an organics-to-energy and clean energy project integrator, has released a letter to shareholders discussing the Company's results for calendar year 2014 and to-date in 2015.

We ended 2013 with two principal projects in the United States -- our North Carolina and Rhode Island biogas projects (collectively, the "2013 Projects"). Although we accomplished major development milestones in both of our 2013 Projects, neither of them had financing or was shovel-ready for construction. As we advanced the 2013 Projects toward their goals, we saw the tremendous potential of organics to energy business with greater clarity and we realized the importance of developing a pipeline of more projects in parallel with the development of our existing projects. Consequently, we set for ourselves two critical missions for 2014: (i) bringing the 2013 Projects to full financing and shovel-readiness for construction in 2014 and (ii) developing a pipeline of more lucrative projects in the organics to energy sector.


We got off to a good start in 2014 by redoubling our efforts in the United States and initiating efforts in Europe and Israel. Thanks to these efforts, we achieved the following results in 2014:

  • June 2014 - Execution of a binding memorandum of understanding in respect of a new anaerobic digestion project in the Boston metropolitan area.
  • December 2014 - We commenced construction of our North Carolina and Rhode Island biogas plants.
  • January 2015 - We achieved financial closing in the amount of $27 million in respect of and became a co-owner of the North Carolina biogas plant.
  • January 2015 - We booked our first revenue in the history of the Company in the amount of $1,250,000.
  • February 2015 - Receipt of final principal permit for construction and operation of our North Carolina biogas plant.

Specific Accomplishments

1. North Carolina biogas project - We not only brought the project to shovel-readiness, but, more importantly, we commenced onsite construction by starting the foundation and building the access road. As announced last week in our public filings and press-release, on January 30, 2015, we closed on the full financing of and became a co-owner of the North Carolina project. We also booked our first revenue of $1,250,000. The North Carolina project is now under full-time construction and is on track to commence commercial operation in 2015. We are scheduled to receive another two payments of $587,500 later this year -- the first upon mechanical completion of the plant and the second upon commencement of commercial operation. After this, we will participate in the revenues of the plant for the next 15 years as a 25% owner.

2. Rhode Island biogas project - As with the North Carolina project, we not only brought the project to shovel-readiness, but we also commenced construction by having our EPC contractor start fabrication of critical equipment for the plant. This fabrication will continue until we start work onsite (expected in March 2015) and until the plant reaches commercial operation. We are currently negotiating definitive financing agreements for this project and hope to close in Q1 of 2015. If we close in Q1 2015, the project is expected to commence operation before the end of 2015.

3. Boston biogas project - We signed a binding memorandum of understanding on a third biogas project in the Boston metropolitan area. Efforts are underway to enter into a power purchase agreement after which full project development activities will commence.

4. Israel biogas project - We signed a binding memorandum with an Israeli State-owned company to develop a 5MW biogas project in Israel. We are currently negotiating definitive financing agreements for this project and, as with our Rhode Island project, hope to close in Q1 of 2015. If we close in Q1 2015, the project is expected to commence operation in 2016.

5. Italian biogas projects - We are in the final stage of negotiation and definitive agreement preparation for the acquisition of seven 1 MW anaerobic digestion facilities in Italy. These facilities are fully permitted, already in operation and are producing income, so we will start earning revenue from day one after the acquisition. Each facility is producing enough cash flow to generate an internal rate of return of greater than 25%.

6. Pipeline of new projects - We are now past the initial stage of evaluating the following projects for acquisition or development:

  •  nine more 1 MW facilities in Italy with at least one year of operating history
  •  numerous landfill gas to energy projects in the United States
  •  numerous anaerobic digestion projects in the United States and Canada
  •  10 renewable natural gas projects in the United States

Overall, we are evaluating acquisition, development and/or participation in approximately $[500 million] in organics to energy projects in the United States, Canada and around the world, which, if consummated, will bring us tens of millions of dollars in annual revenue over the coming years.

7. Strategic Partnerships - As of the end of 2014 we are jointly pursuing project acquisition and development opportunities with some of the biggest names and financial backers in the business. This means we are offering comprehensive solutions for organics to energy opportunities with some of the most recognized names in this space as our partners.

8. Bluesphere Technology - We opened a technology division and, as our first transaction, signed a license agreement with Nanyang Technological University in respect of a fast-charging and long-lasting lithium ion battery technology that is expected to recharge a battery to 78% capacity in two minutes and increase the life cycle from 2-3 years to over 20 years. Optimization of this technology is ongoing and is expected to continue throughout 2015.


We will continue to focus on the construction and implementation of our North Carolina and Rhode Island biogas plants, development of new projects currently under evaluation, expansion of our pipeline of projects in anaerobic digestion, renewable natural gas and landfill gas to energy and further development of our fast-charging battery technology and addition of new technologies in our technology division. Now that we have our North Carolina plant fully financed and under construction, our Rhode Island plant close behind and are earning revenue, we have turned the corner and transitioned from being a company with dreams and prospects to a company with a real business, good strategic and financial partners and bigger and better prospects than ever before in the history of the Company.

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. For further information please visit the Company's website and

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. 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. 

Contact Information

  • Media Contact:
    Karl Schilling