Blue Sphere inks deal for 10-MW waste-to-power scheme in Ghana

Sep 17, 2013 - Israel-based clean-tech firm Blue Sphere Corp (OTCMKTS:BLSP) yesterday said it had struck a binding memorandum of understanding for a 10-MW waste-to-power project in Ghana.

Under the agreement with local waste collection and disposal firm J Stanley Owusu Group of Companies, Blue Sphere will receive and process in an anaerobic digester up to 1,000 tonnes of pre-sorted organic waste daily. The feedstock will come from a new transfer facility in Accra that will kick off operations at the beginning of next year. Blue Sphere will install the 10-MW waste-to-energy system adjacent to that waste transfer facility.

J Stanley Owusu is to finance 50% of the equity funding for the project.

The power plant will operate under Ghana’s feed-in-tariff (FiT) scheme for waste-to-power projects, unveiled last week. Project like that are now eligible for a subsidy of USD 0.116 (EUR 0.087) per kWh. As a result, Blue Sphere’s project will fetch USD 10 million each year.

The waste transfer station is currently being built by Stanley Owusu Group and is in the final construction stage. When up and running it will collect all municipal solid waste in Accra every day. Initially, it will receive 250 tonnes of waste per day, which in 6-12 months will increase to 1,000 tonnes.

(USD 1.0 = EUR 0.750)

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