Blue Sphere Corp. (OTCQB: BLSP) announced April 20 the closing of a joint venture with an affiliate of York Capital Management to develop, construct and operate a 3.2-MW biogas generation facility in Johnston, Rhode Island, under the management of Entropy Investment Management.
Under the joint venture, Blue Sphere owns 22.75% of the project and received an initial payment of $1,481,900 in cash at the closing. Two payments of $562,500 each are expected to be paid later this year upon the project achieving mechanical completion and commercial operation milestones.
Blue Sphere CEO Shlomi Palas said this is the second closing for the company in 2015, stating “we closed on a joint venture to develop a second significant food waste to energy facility in the United States, which, under the current construction timeline for the Project, is anticipated to commence production and sale of electricity during the fourth quarter of 2015. We booked our second round of revenue in the history of the Company from the cash payment received at the closing of the Joint Venture, and upon successful completion of the Project, expect to earn regular revenue from the sale of electricity, compost and feedstock tipping fees.”
Orbit Energy, based in Raleigh, N.C., co-developed this new project. Blue Sphere has made arrangements for the inclusion of two of Orbit’s high solid anaerobic digester units to work in parallel with the digesters of Austep S.p.A., the project’s EPC contractor, subject to the fulfillment of certain conditions.
Blue Sphere is a waste-to-energy project integrator in the cleantech sector. York Capital Management is an investment management firm with primary offices in New York, London and Hong Kong. Entropy Investment Management is a specialty energy investment management firm with its primary office in Charlotte, N.C. The firm, founded in 2013 by David March and Lewis Reynolds, manages certain North and South American renewable energy assets of York Capital Management.