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Blue Sphere Corporation Announces Memorandum of Understanding for Landfill Project in Kazakhstan

^{Published on 2010-05-13 05:42:36 - Market Wire}
 

LONDON--([ BUSINESS WIRE ])--Blue Sphere Corporation (OTCBB: BLSP) (the "Company" or aBlue Spherea), a company in the Cleantech sector as an Emission Reduction project integrator, is pleased to announce that it has taken assignment of a Memorandum of Understanding with Vtorma Ecology Co. (aVtormaa) to implement a joint implementation project at the Alma Aty Municipal Landfill site in Kazakhstan. The project is to capture waste methane gas for flaring and at a later date, potentially generate electricity and/or heat.

Blue Sphere will be the investor and co-developer of the project together with Vtorma, the operator of the landfill. The project will commence with a feasibility study on installing a flare at the Alma Aty Municipal Landfill site. Alma Aty is the largest city in Kazakhstan with a population of over one million.

The landfill site receives over 1,150 tons of municipal solid waste (MSW) per day, primarily from Alma Aty, Kazakhstan and its suburbs. When MSW is deposited in landfills, methane is generated due to decomposition.

The annual estimated Emission Reduction Units (aERUsa) for the landfill is estimated at 65,000 ERUs per year. If all conditions to final agreement are fulfilled and permits granted as anticipated, the ERUs are expected to start in 2011.

The total gross income to Blue Sphere over the life of the project based on 65,000 ERUs per year is estimated by management at $7 MM USD, calculated at current and escalating ERU prices.

The total investment for the project is estimated at $1.5 Million USD, not including the cost of an electricity and heat system.

aThis is another exciting project for us. In the near term we expect to complete a feasibility study and negotiate a final agreement; once complete we can begin implementation of the project in a timely manner. Eastern Europe is a very large market for emission reduction projects and Blue Spherea™s expertise at scoping and managing the projects gives us an opportunity to work with landfill operators who are committed to reducing greenhouse gases and cleaning up their landfill sites. a said Shlomi Palas, CEO of Blue Sphere Corporate.

For further information please contact the company at 888-309-9088 or [ info@bluespherecorporate.com ]

About Blue Sphere Corporation

Blue Sphere Corp. is a company in the cleantech sector as an Emission Reduction Project Integrator. Blue Sphere develops projects for greenhouse gas emission reduction and renewable energy production. The company aspires to become a key player in the global carbon reduction market, helping enterprises with high pollution emissions achieve their green goals. For further information please visit the Company's website [ www.bluespherecorporate.com ]

This news release contains aforward-looking statements.aStatements in this press release, which are not purely historical, are forward-looking statements and include statements concerning the Companya™s business outlook or future economic performance, anticipated revenues, expenses or other financial items; plans and objectives related thereto; and assumptions or expectations relating to any future events, conditions, performance or other matters. Such forward-looking statements include, among others, that we will finalize contracts and obtain permits to construct and operate a flaring system on the Alma Aty landfill; that the project can commence generating ERUs in 2014; that we can perform on our landfill contract and sell ERUs, including successfully raising financing for infrastructure and equipment, use technology that is effective at burning methane in an environmentally friendly way, and complete the project as expected; that power/heat generation may be feasible and add to revenues; that we can sell the ERUs generated from the projects;that we expect to net 65,000 ERUs; that ERUs from the projects will increase in volume and in price; that the gross value of the project is $7 million; that the project costs are $1.5 million; and that the Company can become a key player in the global carbon reduction market.

Forward-looking statements are subject to risks, uncertainties and factors include, but are not limited to the nature of the carbon credit industry, including changing customer demand, changing regulatory requirements, an immature and unpredictable market for ERUs, different regulations across national borders, customer acceptance of our services and products, the impact of competitive services, products and pricing, dependence on existing management, that technology may not work as expected and general economic conditions. In regards to our company, the following are also risk factors:we may not be able to finalize negotiations and sign contracts; our ability to finance operations and growth, our ability to attract and retain employees and consultants, competition from cheaper or more accepted competitors, whether our technology can perform under commercial conditions and our ability to keep control on costs. Readers should also refer to the risk disclosures outlined in disclosure documents filed by other start up environmental companies with the Securities and Exchange Commission available at [ www.sec.gov ].

The Company assumes no obligation to update the information in this release.