Waste-to-energy project developer Blue Sphere Corp. has signed an agreement to jointly set up a 5.2-megawatt biogas project in Charlotte, North Carolina with affiliates of York Capital Management.
Under the terms of the joint venture, Blue Sphere will retain 25% of the project and has received an initial payment of US$1.25 million in cash. An additional US$1.17 million will be paid in two stages once the project starts operating.
The plant will utilize anaerobic digestion, a process that breaks down organic material, to produce biogas. It is expected to starts production in the fourth quarter. According to Blue Sphere, preliminary long-term agreements have been reached for the supply of biomass input from large companies and a power-purchase agreement has been inked for the sale of electricity output.