Caterpillar Backing Blue Sphere Biogas Projects
Cat supplying equipment, US$21 million for projects
Caterpillar has signed an agreement with Blue Sphere Corp., to provide US$21 million in financing for Blue Sphere's first two projects in the United States.
Blue Sphere will establish a special U.S. subsidiary to manage the projects. Caterpillar will supply the electricity generation equipment and finance 70% of the projects’ total cost. Caterpillar will also provide US$14 million in financing for the first US$20 million project, and US$7 million for the second US$10 million project.
These are the first of 10 projects Blue Sphere is planning in the U.S., projects that will generate 44 MW of power. As a condition for the financing, Blue Sphere has already signed multiyear power purchasing agreements for the two projects with local utilities.
On August 21, Blue Sphere signed a joint venture agreement with Germany’s Biogas Nord AG, a manufacturer of equipment for the generation of electricity from methane. The pair will jointly develop, finance and operate biogas plants in the U.S. Blue Sphere will own 75% of the joint venture, which will operate the two projects under the agreement with Caterpillar, among others.