Blue Sphere Corp., an Emission Reduction Project Integrator, focuses on the cleantech sector. The company develops projects for greenhouse gas emission reduction and renewable energy production. Blue Sphere aims to become a key player in the global carbon reduction market, helping enterprises with high pollution emissions achieve their green goals. The company trades on the OTCBB.
Global warming’s negative effects to the environment and the world’s population has compelled government agencies to create regulations that mandate polluting businesses to take responsibility for their greenhouse gas emissions. Blue Sphere, as an Emission Reduction Project Developer, provides the solutions necessary for businesses to solve their emission problems.
The company believes future movements on the market for carbon credits will have a significant impact on its revenues. In fact, New Energy predicts that the global carbon market will be worth $122 billion. By 2020, it has forecasted the market will be worth an astounding $1.9 trillion. Blue Sphere is moving to capitalize on this growing market, identifying emissions with high conversion potential and determining the best technology for conversion.
In most recent news, the company announced that it has signed contracts with two landfills in Ukraine to burn waste methane gas. The projects involve the construction and operation of a flaring system and the preparation of a feasibility study on whether power generation facilities may be commercially feasible. Such a power generation system would be designed to capture and convert methane gas into a usable energy source from the two landfills in Ukraine.
One of the landfills is located near the capital Kiev and the other one is in east Ukraine, near an urban and industrial center. The total estimated Certified Emission Reductions (CER) for the lifespan of the two landfills, 13 years, in Ukraine is 1,050,000. Of this amount, Blue Sphere expects to net 855,000 CERs. It is anticipated that the projects will operate at a loss for the first two years, after which higher CER prices and greater CER volume would render the project profitable.
Shlomi Palas, CEO of Blue Sphere Corporate, commented on the contracts saying, “This is another milestone for Blue Sphere. We are extremely pleased that we are able to announce the completion of three contracts this week, a nitrous oxide plant in Uzbekistan and two landfills in Ukraine. We have made significant progress signing these contracts and we look forward to updating our stakeholders with more information.”
In earlier news, the company also signed a contract with a Nitric Acid plant for the removal of nitrous Oxide (“N2O”), a greenhouse gas accounting for around 6% of the heating effect of greenhouse gases in the atmosphere. A new study suggests that N2O emission is currently the single most important ozone-depleting substance (ODS) emission and is expected to remain the largest throughout the 21st century.
This project involves the purchase and installation of a precious metal catalyst in the plant in Uzbekistan. The production of nitric acid gives off N2O, an unwanted by-product, which is currently being vented into the atmosphere, contributing to global warming. The introduction of a catalyst in the production process will destroy approximately 80% of the N2O. The Kyoto Protocol provides an approved methodology pursuant to which the party that is responsible for abating the N2O is eligible to obtain 310 carbon credits for each ton of N2O abated.