Bluesphere receives $15m term sheet for full equity financing of 3.2MW biogas plant

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

The term sheet includes full equity financing of over $15 million (€ million) for its 3.2MW biogas project in Johnston, Rhode Island. The facility will generate electricity from biogas derived from organic waste.

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

'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,' states Bluesphere CEO Shomi Palas. 'We have started the Johnson project on time and we anticipate reaching commercial operations and delivering power by December 2015.'

Bluesphere recently announced it signed a letter of intent with a company in the recycling and waste industries which will supply between 100 and 200 tonnes of organic waste per day to the Johnston waste-to-energy facility. Agreements and other LOIs are in place for a 15 year electricity purchase agreement, site lease with purchase option, compost off-take agreement, and EPC contractor.

Bluesphere generates electricity from biogas derived from organic waste, which is mostly food waste, and sells this electricity to electric companies through long-term power purchase agreements.