2 the company nasdaq otc traded since march 9 th, 2010 focus on waste to $ emissions prevention...
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The CompanyThe Company
Nasdaq OTC traded since March 9th, 2010
Focus on
Waste to $
Emissions prevention
Invested till today: 1,200,000 $
Main share holders : Founders and private investors
Operating in: Ghana, USA, and China
Strong pipeline of projects, will start project execution in coming 6 months and start generating revenues in coming 12-18 months
StrategyStrategy
The Company is focused on preventing green house emissions while turning waste into revenue generating resource, including:
Energy
Compost
Carbon Credit
The Company is focused on BOT & BOO projects with a very high ROI and continuous revenues for long periods of time.
The Company is operating as the project developer and will execute the projects with EPC contractors.
In the last year the Company signed 10 projects and is starting to execute them now.
Completed financing of $3.4 MM for first 2 projects.
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The OpportunityThe Opportunity
The Company is taking a major international problem and turning it into a source
of revenue.
There is unlimited, continuous production of waste and a big demand for the
products that the Company knows how to produce out of this waste.
Carbon Credit:
Carbon credit market was worth $142 Billion in 2010 and by 2020 is expected
to grow to $1.9 Trillion
Compost
The North American market for Compost produced from Diary Farm’s alone is
estimated at over $1 Billion.
Renewable energy
The increase in electricity prices combined with the run off from nuclear
energy created a huge, almost unlimited market for renewable energy.
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Blue Sphere ManagementBlue Sphere ManagementBlue Sphere is led by highly experienced team of executives with many years of experience in developing and managing environmental and energy projects world wide.
Eli Weinberg – ChairmanMr. Weinberg is an expert in the clean-tech sector and was Chairman of the environment desk at the Israeli Chamber of Commerce. Mr. Weinberg has managed several large organizations, including as CEO of Delta Galil Europe Ltd., CEO of Amnir Recycling Industries Ltd. (the leading Israeli company in the environment industry), CEO of Tradetex International Inc., and CFO of Scitex Europe S.A. Mr. Weinberg is experienced in running large multi national operations in developing countries. As CEO of Amnir Recycling Industries, Mr. Weinberg was involved in large scale waste management projects.
Shlomi Palas - CEOMr. Palas is a highly experienced entrepreneur and executive. He was a senior consultant with Mitzuv, a leading management consulting firm. For the past four years, he has specialized in the renewable and clean tech industries, and has significant experience in renewable and clean tech, large scale project management, off-take contracts with leading petrol companies, legal/financial structuring, and fundraising for these industries. He has also developed a large network in private and government sectors in developing countries.
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Blue Sphere ManagementBlue Sphere Management
Roy Amitzur – Executive VPRoy Amitzur is a world-renowned expert in environmental business. He served as a former CEO and Director of a number of israeli and foreign companies. Rouy has vast experience in international project execution and is bringing with him to Blue Sphere a large network of large system integrators, institutions and investors in the environmental market.
Mark Radom, Chief Carbon Project DeveloperMr. Radom has worked in the “carbon” industry as legal counsel to carbon project developers and then as Chief Operating Officer and Chief Executive Officer of Carbon Markets Global Limited, a London-based carbon project developer, and Managing Director of Carbon MPV Limited, a Cyprus-based carbon project developer. Prior to this, Mr. Radom worked on Wall Street and in the City of London as a lawyer where he represented sovereigns, global investment banks and major companies across a broad range of capital raising and corporate transactions.
7 Projects – Immediate Execution7 Projects – Immediate Execution
USA – Electricity and compost production from cattle manure in 4 farms.
Ghana – Carbon Credit at 2 landfills.
China – Electricity production from cattle manure – 1 huge project.
All above projects are signed and they are in different stages of moving forward
towards execution.
Many additional projects in each of the above territories are ready to go into
execution as 2nd wave.
We have additional projects in Cyprus and Greece which are signed and we are
currently evaluating.
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Ghana ProjectsGhana Projects
Signed Projects: 3 Landfills + 1 MSW Transfer Station
Expecting to sign in coming 6 months: 1 landfill + option to sludge treatment facility.
First 2 projects have started execution
Agreement was signed with B-pure for $3.4 MM project financingB-Pure will be responsible for project executionBlueSphere’s share in these projects will be 50% Projects IRR: 44% and 34%Project NPV: $8.1 MM and $3.5 MMStarted UN CER registration process
In contract negotiations with Vattenfall for the purchase of all CDMs
that will be produced in Ghana and up to 9 projects
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Ghana,Kumasi LandfillGhana,Kumasi Landfill
Installation of a gas collection system and flare.
The landfill site was opened in 2004 and is expected to receive waste until 2020. As such, the landfill will continue to create and emit methane until 2040.
Available Option (TBD) : Power generation instead of flaring and compost production on top of any alternative.
CER Units 50,000 initially, rising to 131,000 in 2022. Average approx. 97,000
Project Scale $1.8 million
IRR 43%
Status Project financing agreement is signed and execution has started.
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Ghana,Oblogo LandfillGhana,Oblogo Landfill
The Project is comprise the installation of a gas collection system and flare at two closed landfill in Ghana. The landfill site was closed after 2005 with approximately 1.5 million tonnes of municipal solid waste.
These landfill sites will continue to create and emit methane until after the project will no longer be eligible to receive CERs (which is 21 years).
CER Units 43,000 initially, falling to 32,000
Project Scale $1.6 million
IRR 34%
Status Project Financing agreement was signed and execution
has started.
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US ProjectsUS Projects
We have established a JV with Stewartsmith, a privately owned company of
which the owners have many years of activity in this market.
50 Projects with dairy farms have been signed and LOIs were received from
major US buyers for the Organic Compost.
We are planning to start executing projects at 4 farms.
DBF only – can start generating revenue in 6 months.
Electricity production - can start generating revenues in 18 months.
We are in negotiations with 3 potential investors for project financing of the
initial 4 farms.
We are negotiating an option to work with Waterleau from Belgium as EPC for
these projects.
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USA – Cattle Manure TreatmentWith Electricity Production
Description
Partnering with 4 cattle farms with 16,000 cattle and option to execute 50 farms in the north west part of USA, Blue Sphere will use the manure to produce compost and have the option to convert methane from digesting manure to electricity.Term sheets are signed with the project owner. EPC and Technology provider are in place.
GrantThe electricity production part of these projects is qualified for the 30% Federal tax credit / 1603 cash grant.
Project Scale $30 million
IRR 36%
Status Engineering, permits and LOIs with Compost off takers are in place
USA – Cattle Manure TreatmentUSA – Cattle Manure TreatmentDBF OnlyDBF Only
Description
Partnering with 4 cattle farms with 16,000 cattle and option to execute 50 farms in the north west part of USA, Blue Sphere will use the manure to produce compost and have the option to convert methane from digesting manure to electricity.Term sheets are signed with the project owner. EPC and Technology provider are in place.
Grant No Grant
Project Scale $8 million
IRR 38%
Status Engineering, permits, LOI with Compost off takers are in place
Chinese ProjectsChinese Projects
We established partnership with Clinci - a leading Chinese provider of waste to
energy and waste to compost solutions
Huishan project is signed and ready to go pending financing
Additional 14 projects ready to sign pending financing
Overall 15 projects data:
NPV > $550m
IRR > 35%
Required investment $152m
In negotiations with CLSA fund for over-all project financing
China – Cattle Manure - HuishanChina – Cattle Manure - Huishan
Description
China is the largest active market in the world in carbon reduction activity. It accounts for 45% of worldwide carbon reduction projects.Partnering with one of the largest complexes of cattle farms in the world, Blue Sphere will convert methane from digesting manure to electricity.Term sheets are signed with the cattle farms by which the Chinese partner will invest 50% of the required equity.
CER Units 80,000 CER, 5.6 MW
Project Scale $22 million
IRR 23%
Status DD design and engineering plan have been started
China – 15 ProjectsChina – 15 ProjectsProject name Funds Required** Total Revenue Ave. Annual Net IRR
Profit Before Tax*
1 Huishan 22,100 124,200 4,700 23%
2 Huibei 17,500 415,300 20,000 54%
3 Zhejiang 6,900 103,400 5,000 47%
4 Shandong 13,000 205,300 10,000 52%
5 Jilin 22,000 399,500 20,500 52%
6 Hebei 13,000 205,300 10,000 52%
7 Guangxi 22,200 399,500 18,400 52%
8 Beijing 10,300 104,700 5,200 49%
9 Zhengzhou 4,300 33,400 1,200 32%
10 Jiaozuo 4,300 33,500 1,200 32%
11 Nanyang 4,300 35,300 1,200 32%
12 Yixian 8,100 66,900 2,500 37%
13 Zhangwu 8,100 70,500 2,700 39%
14 Fushon 8,100 66,900 2,500 37%
15 Chongqing 21,100 391,800 20,000 54%
Administration (until positive cf) 3,000
Total 188,300 2,072,600 97,900
Funds supplied by self cash flow 36,300
Total funds required ** 152,000
Consolidated Current Project Data Consolidated Current Project Data
Number of Total required Average
Projects Investment IRR
US 4 $30m 36%
Ghana 2 $4m 38%
China 15 $152m 42%
Capital RequirementsCapital Requirements
Blue Sphere currently has 7 signed projects ready to start.
They require a total of $72 Million in financing.
These projects are typically expected to provide payback of the total capital
investment in 3 years.
Unleveraged IRRs for most of the projects are expected to be in the range of
22% - 40% (depending on the location) .
Cumulative EBITDA over the projects’ 20-year life is expected to reach five
times the total capital investment (equity + debt financing).
Financing OptionsFinancing Options
Blue Sphere has a number of possible financing options:
Sell stock in Blue Sphere - Implement the projects and maintain 100%
ownership on the projects
Project equity financing: Sell portions of one or more projects- decrease
the equity interest that Blue Sphere holds in a project.
A combination of the two above funding methods - Equity investment of
roughly 30% to 40% of the total capital required,
All of the above options can be complemented by debt financing.
Blue Sphere Financial ProjectionsBlue Sphere Financial Projections
Annual revenue will reach $101-$113 Million within 7 years.
NPV after investment deduction will reach $260 within 7 years .
Average IRR for non leveraged capital will exceed 25%.
The above values will be achieved by entering into more projects in solid
waste, manure, and agriculture waste treatment.
We will continue our strategy: mix high yield projects in emerging markets with
lower risk projects in developed countries
These projections require an additional $35 MM in capital investment but only
after a few of the initial signed projects are up and running.
Plan for the short termPlan for the short term
Start the execution of the following:
2 projects in Ghana
1 project in the US
1 project in China
Raise $1-2 MM for 12-24 months operational expenses
Start IR & PR activities in the US market
Sign strategic agreements with
1-2 large CDM buyers
1-2 EPC
Close financing for all the signed projects in China, Ghana and US.
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SummarySummary
The Company is active in a huge and rapidly growing market.
The Company has a highly experienced management team with a vast proven track record.
The Company is operating as a project developer and is focused on long term projects with IRR > 25%.
The Company completed the initial phase of generating a significant pipeline of projects.
The Company is moving into project execution and will start generating revenues in the next 12-18 months.
The Company is expected to have assets with NPV of about $260 MM in 7 years.
WaiverWaiverThe information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions, investors should rely on their own examination of Bluesphere Corporation (“BSC”) and its projects and consult with their own legal, tax, business and/or financial advisors in connection with any acquisition of securities or other investment.The information contained in this presentation has been prepared in good faith by BSC. However, no representation or warranty, expressed or implied, is made as to the accuracy, correctness, completeness or adequacy of any statement, estimates, opinions or other information contained in this presentation.This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and as that term is defined in the Private Litigation Reform Act of 1995, which are subject to risks and uncertainties and may change at any time. Among these are: (i) uncertainties regarding our ability to obtain adequate financing on a timely basis including financing for the projects described in this release and other specific projects, (ii) uncertainties regarding the future of applicable renewable energy markets, the Kyoto Protocol and binding greenhouse gas warming commitments of industrialized countries, (iii) uncertainties regarding the market for and value of carbon credits, as well as the duration and amount of estimated emissions from specific projects, (iv) political and governmental risks associated with the foreign countries in which we operate, (v) unanticipated delays associated with project implementation including designing, constructing and equipping projects, as well as delays in obtaining required host country and United Nations approvals, (vi) the development stage of our business and (vii) our lack of operating history. As such, there is no assurance that the initiatives described in the press release will be successfully implemented or meet expectations.Accordingly, BSC, its directors, officers, employees and agents do not give any assurance or guarantee that the occurrence of events referred to in this presentation will occur as contemplated.The Company assumes no obligation to update the information in this presentation.
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