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United States : BLUESPHERE secures $15m term sheet for full equity financing of 3.2MW biogas plant in JOHNSTON, RHODE ISLAND

July 16, 2014

A clean energy firm that develops, manages and owns waste-to-energy projects, Bluesphere, has announced receiving a term sheet from private equity fund manager Energy Power Partners (EPP).

The term sheet comprises of full equity financing to the tune of around $15 million for its 3.2MW biogas project located in Johnston, Rhode Island, which will generate electricity from biogas derived from organic waste.

By 30 August 2014, Bluesphere will enter into a final agreement with EPP, pursuant to which the funds will be made available to Bluesphere in cash towards construction and implementation of the Johnston project subject to completion of final due diligence by EPP.

Bluesphere CEO Shomi Palas said, EPP is a desirable partner...because it is offering to finance this project with 100% equity. Not having debt creates greater cash flow and minimises restrictive covenants. Bluesphere will maintain a meaningful equity stake in the project, while also earning project management fees and profit-sharing with build-in performance incentives.

We have started the Johnson project on time and we anticipate reaching commercial operations and delivering power by December 2015.

Recently, Bluesphere has signed a letter of intent with a company in the recycling and waste industries for daily supply of around 100 to 200 tonnes of organic waste to the Johnston waste-to-energy facility.

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Source: TendersInfo (India)

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