For media relations about Blue Sphere Corporation, waste-to-energy technologies, regulatory perspectives or other topics relating to the waste-to-energy industry, please contact us to arrange an interview.

Grab our: Fact sheet | Logos | Video

Blue Sphere Corporation (the company or Blue Sphere), a clean-tech independent power producer that develops, owns and manages waste to energy facilities globally, has announced that the company signed an exclusive term sheet to acquire a 1MW waste to energy biogas plant from Agrilandia Societa Agricola a r.l. (the plant).

As proposed in the term sheet, Blue Sphere shall acquire a 100% interest in the plant, the land where the plant is built (approximately 2 hectares) and the feedstock inventory. The proposed acquisition also includes all operating agreements including the remainder of the power purchase agreement (PPA) that is in place with Gestore del Servizi Energetici, S.p.A (GSE). GSE is a state owned company that promotes and supports renewable energy sources in Italy, under a power purchase agreement. The plant’s PPA runs through 31 December 2027.

The proposed purchase price contemplated for the transaction is approximately US$4.81 million at the current € to US$ conversion rates, or approximately 4.5 times EBITDA. The purchase price will be paid in a combination of cash at closing and the assumption of bank debt from the sellers.

Austep, S.p.A, Blue Sphere’s operating partner, and a global leader in waste to energy technology and management, shall guarantee the annual EBITDA, which is expected to be approximately US$1 million. The Austep, S.p.A financial guarantee shall be further backed by an insurance policy underwritten and issued by a leading insurance provider.

The closing with the seller is subject to certain conditions including, but not limited to, the completion of due diligence by Blue Sphere and delivery to Blue Sphere prior to the execution of definitive agreements, all rights, permits, licenses, approvals and agreements required for the ownership and operation of the facility, including all governmental and regulatory approvals as well as feedstock supply agreements and power purchase agreements for the purchase of the electricity and gas produced by the facility.

Shlomi Palas, the company’s CEO, commented, “We are very excited to have signed this term sheet to acquire another fully operating biogas facility. This is the yet another step in the execution process of developing the many projects in our pipeline of waste to energy facilities.”

Published on 05/04/2016

http://www.energyglobal.com/downstream/clean-fuels/05042016/Blue-Sphere-acquires-waste-to-energy-facility-from-Agrilandia-Societa-Agricola-2948/

 

Adapted from press release by Francesca Brindle