Bluesphere, the clean energy company that manages waste-to-energy projects has signed a MOU to develop a 5 MW biogas project with ESC, a State-owned company in Israel.
The MOU expects that ESC, the Israeli State-owned company will lease a site for the project and arrange the required amounts of food waste for use as feedstock and will perform maintenance services.
The Israel Electric Company is obligated to buy the power produced and a long-term PPA at a suitable rate will be soon finalized.
Bluesphere will be responsible for development, project finance and operation for 20-years.
After operating for three years, ESC can purchase up to a 50 percent ownership share in the project at market value.
The agreement marks the start of Israeli strategy, which can become a major driver of value for Bluesphere. Israel offers a unique opportunity insofar as power purchase agreements are awarded to biogas projects as a matter of law. This is normally one of the hardest parts of any project’s development and in Israel, the power purchase agreement as a given, stated, Shlomi Palas, CEO, BlueSphere.
Moreover, the counterpart will arrange to deliver source-separated organic municipal waste, which is a great feedstock for the project. Discussions with financial partners for project financing are going on. In addition, there are more opportunities in Israel to implement biogas projects and evaluation of a number of them is under process, explained Palas.