Blue Sphere acquires 4 producing biogas facilities in Italy

By Blue Sphere Corp. | May 19, 2015

Blue Sphere Corp., a clean energy company that develops, manages and owns waste-to-energy projects, announced it has acquired 4 fully operational biogas facilities in Italy. Each of these facilities produce 1 MW.

Blue Sphere established Blue Sphere Italy S.r.l as a wholly owned subsidiary for all future Italian acquisitions. The company anticipates the potential of 13 more acquisitions in the near future.

Blue Sphere Italy S.r.l signed a definitive agreement with Kinexia, an Italian public company, and will now await a change of control process that could take up to 60 days from the date of execution of the definitive agreement. The company cannot make any guarantees that the change of control will be approved in this timeframe or at all. After finalization this, acquisition will result in expected total annual revenue flow of 8.6 million Euro ($9.8 million) for Blue Sphere. It will also accretively provide 1.1 million Euro in annual cash flow to the company.

This acquisition represents the initial execution of a long term business strategy geared toward rapidly increasing revenues and adding exceptional assets and cash flow to the company's balance sheet.

Blue Sphere generates electricity from biogas derived from organic waste, which is mostly food waste, and sells this electricity to leading electric companies through long-term power purchase agreements. Waste-to-energy is one of the fastest growing segments in the renewable energy markets. According to SBI Energy, the thermal and biological segments reached $6 billion in 2012 and will reach $29 billion by 2022.

"Achieving this important milestone validates Blue Sphere Corporate's ability to acquire operational Biogas facilities, and moves us closer to our goal of being one of the largest players in the Waste to Energy global market," said CEO Shlomi Palas.