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Blue Sphere signs US$65 million off-take deal for Dutch biomethane project

US-headed Blue Sphere Corporation (BLSP), a clean-tech independent power producer (IPP) that develops, owns and manages waste-to-energy facilities globally, has revealed that its engineering subcontractor Dura Vermeer, has completed its on-site visit and analysis, positively confirming that the property meets the standards necessary for the construction of an anaerobic digester (AD) waste-to-energy facility in Sterksel, Netherlands by its wholly-owned subsidiary, Blue Sphere Brabant B.V.

On September 19, 2017, Blue Sphere filed a “Current Report” on Form 8-K with the US Securities and Exchange Commission (SEC) disclosing that it had entered into a material definitive agreement for the Purchase and Supply of Green Gas with GasTerra B.V., a major gas wholesaler based in the Netherlands.

Blue Sphere Brabant agreed to supply, and GasTerra agreed to purchase, biogas that has been upgraded into biomethane from the Netherlands facility in Sterksel for a period of 12 years, from January 1, 2019, through January 1, 2031, with the possibility to renew upon mutual agreement once the term of the agreement has come to an end.

Under the Gas Off-Take Agreement, Blue Sphere Brabant will supply a maximum of 3 500 Nm3 biomethane per hour and BLSP anticipates the value of the Gas Off-Take Agreement during the initial twelve-year term to be approximately EUR 55 million (≈ US$65.7 million).

The off-take agreement is, in addition, to the grant awarded December 13, 2016, by the Netherlands Enterprise Agency to sell renewable gas on a per MWh basis to Rijksdienst voor Ondernemend Nederland (RVO) under the Renewable Energy Production Incentive Scheme (SDE).

The development will also qualify for the sale of Green Certificates and Carbon Credits, in addition, the SDE grant and offtake sales.

We are very excited to be taking the next steps in the development of this important project for Blue Sphere. The project is currently the largest anaerobic digester facility being developed in all of Europe and I am very proud of the progress that our team is making, said Shlomi Palas, CEO of Blue Sphere.

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