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Blue Sphere to turn China green

UK-headquartered Blue Sphere Corporation, an emission reduction project integrator, has signed a non-binding term sheet for the construction and operation of a biomass-fired cogeneration facility in Henan Province, China.

Blue Sphere and its co-developer Hanmei Straw Cogeneration have estimated that the annual electricity generated could be 140.8 million Kwh, the annual heat supply could be 240,000m3 and annual CERs could be 172,406.

The plant is intended to supply 140,800 MWh of electricity to the Central China Power Grid and supply 240,000m3 of heat to local residents and entities annually.

Electricity and heat would be generated by burning biomass residues (straw residues) available within a 35-40km radius of the proposed project activity.

To date, important project approvals have been granted, and the FSR and EIA studies are issued and approved. The project is conditional on the satisfactory completion of due diligence, legal review and documentation by the co-developer, satisfactory financing and a further and fuller binding agreement being agreed between the parties.

The total investment for the project debt and equity is estimated at $38 million (€31.8 million).

‘We know that China is the largest active market in the world in terms of carbon reduction activity,’ Shlomi Palas, CEO of Blue Sphere, says. ‘It accounts for 45% of worldwide carbon reduction projects. This is a significant market for Blue Sphere and this project is our first step into the market.’