Blue Sphere Corp., an Israel-based renewable energy company, has secured commitment from Caterpillar Financial Services Corporation, the financial arm of Caterpillar Inc. (CAT), to provide $17.785 million in debt financing for its 5.2MW organics-to-energy anaerobic digester facility in Charlotte, North Carolina.
The project will be owned and promoted by BINO Sphere, a JV (Joint Venture) of Blue Sphere and Germany-based Biogas Nord AG. The project will be generating electricity from biogas derived from organic biomass, primarily food waste. The facility will utilize anaerobic digestion, a process that breaks down organic material, to produce biogas that comprises primarily methane and carbon dioxide. The biogas will then be used to generate electricity.
The company plans to break ground on the project in the third quarter of 2013 and anticipates completing the project in the third quarter of 2014. With the debt financing commitment in place, the company is in the process of completing all closing conditions, including investment tax credit monetization, feedstock supply and permits.
Blue Sphere Corp., a development stage company, focuses on operating as a project integrator for greenhouse gas (GHG) emission reduction and renewable energy production projects primarily in Africa, China, and the US. The company was founded in 2007 and is based in Even Yehuda, Israel.