Blue Sphere signs acquisition of 1MW biogas plant in Tortona, Italy

Source: Blue Sphere Corporation

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

As proposed in the term sheet, Blue Sphere shall acquire a 100 percentinterest 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 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 power purchase agreement runs through December 31, 2027.

The proposed purchase price contemplated for the transaction is approximately $4,811,436 at the current Euro to Dollar 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, our operating partner and a global leader in waste to energy technology and management shall guarantee the annual EBITDA, which is expected to be approximately $1m. 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, CEO of Blue Sphere, 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.”

Source: PR Newswire