In North Carolina, Blue Sphere Corp announced they have acquired 4 fully operational biogas facilities in Italy. Each of these facilities produce 1MW. Blue Sphere Corp. established Blue Sphere Italy S.r.l as a wholly-owned subsidiary for all future Italian acquisitions. The Company anticipates the potential of 13 more acquisitions in the near future.
Blue Sphere Italy S.r.l signed a definitive agreement with Kinexia, an Italian public company, and will now await a change of control process that could take up to 60 days from the date of execution of the definitive agreement. The Company cannot make any guarantees that the change of control will be approved in this timeframe or at all. After finalization this, acquisition will result in expected total annual revenue flow of 8.6M Euro ($9.8M) for Blue Sphere Corp. It will also accretively provide 1.1M Euro ($1.26M) in annual cash flow to the Company.
Blue Sphere generates electricity from biogas derived from organic waste, which is mostly food waste, and sells this electricity to leading electric companies through long-term power purchase agreements. Waste-to-energy is one of the fastest growing segments in the renewable energy markets. According to SBI Energy, the thermal and biological segments reached US$6 billion in 2012 and will reach US$29 billion by 2022.