Corporate Presentation April 2015 1 Safe Harbor Statement 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. These statements are only predictions and involve known and unknown risks, uncertainties and other factors including, without limitation, (i) uncertainties regarding our ability to obtain adequate financing on a timely basis including financing for specific projects, (ii) the financial and operating performance of our projects after commissioning, (iii) uncertainties regarding the market for and value of carbon credits and other environmental attributes, (iv) political and governmental risks associated with the 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 government permits and 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 presentation will be successfully implemented or meet expectations. 2 Company Overview ‹ A clean energy company that develops, acquires, manages and owns waste-to-energy projects ‹ Poised for rapid growth, operating in one of the fastest expanding markets ‹ Proven track record of complete development and closing of 2 large US projects ‹ In a unique and strong position, with financial backing from top financial organizations, leading technology partners and a highly experienced and multidisciplinary team ‹ A promising outlook, with available cash, secure cash flow for many years and a substantial flow of new projects in the pipeline 3 Mission Statement Build-Own-Operate and Acquiring income generating assets in the waste to energy market Growth Engines: ‹ Acquisition of fully operating facilities: Anaerobic Digester, Landfill Gas to Energy ‹ Developing Anaerobic Digester’s and Landfill Gas to Energy Projects 4 Waste to Energy Market ‹ Waste to energy is a technology used to convert organic solid waste generated from various domestic, commercial, industrial, agricultural users into energy ‹ Different technologies are used to process waste and each technology has a different course of action, but the end products are in the form of electricity, steam and compost ‹ The energy generated from waste is converted and fed mainly to electricity and gas grids. 5 Challenges ‹ Global WTE market was valued at USD 24 billion in 2012 and is expected to reach USD 37 billion by 2020 Drivers The WTE Market Size and Growth 6 Strong shift towards green energy and harmful methane gas elimination around the world coupled with decreasing landfill area is expected to remain key driving factors. Government and States regulatory and financial support in the form of tax benefits, subsidies and organic waste diversion from landfills have a major positive influence High upfront cost associated with establishment of WTE plants is expected to continue and affect market growth Waste to Energy Technologies and Applications Technologies Applications Thermal Technologies that use heat or combustion to treat wastes Biological Technologies that use bacteria or other organisms to produce gas from waste 7 Electricity Steam Natural Gas Multiple Revenue Sources Long-term contracts offered by electrical and gas companies to renewable energy producers Heat generated by the process can be used directly to warm homes and buildings 8 Feed-inTariff Residual Heat Tipping Fee Compost The charge levied upon a given quantity of waste received at a waste processing facility Digested solids after the digestion process used for farming and land application Strong Government Incentives All over the world governments are providing different types of incentives that improve significantly the financial results: ‹ Renewable Energy Certificates (REC) – add on to the standard electricity and gas prices to enable higher Feed-in-Tariff, which is the price paid by utilities for purchasing the electricity. ‹ Subsidies and Tax Credits – special grants and tax credit offered by a local or federal taxation authority as an incentive for renewable energy systems ‹ Financing: Loans provided at attractive rates and payment terms ‹ Renewable Portfolio Standards (RFP): places an obligation on Utilities to produce a specified fraction of their electricity from renewable energy sources 9 Blue Sphere’s Operation and Business Model Build-Own-Operate organic WTE facilities • Develop opportunities, manage projects, build plants and manage operating facilities • Generate revenues from Tipping Fee and Power Purchase Agreements (PPA) with electric companies and selling byproducts 10 Acquisition of operational WTE plants • Acquire existing fully operational plants generating electricity and revenues • Turnaround to increase revenues and cash flow Landfill gas-to-energy facilities • Partner with landfill owners to generate electricity from methane emissions • Monetize untapped methane gas and reduce harmful emissions Build-Own-Operate Anaerobic Digester Project in North Carolina ‹ Size: 5.2 MW ‹ PPA: Duke Energy – 15 years ‹ Construction Cost: $27m ‹ Current status: In construction ‹ Energy production start: Q4 2015 ‹ Feedstock: organic waste ‹ Compost: sold to third parties ‹ Expected annual revenues: $8.5m ‹ Project IRR: 25% ‹ Funding: Entropy - York Capital Group ‹ Ownership: 25% 11 Build-Own-Operate Anaerobic Digester Project in Rhode Island ‹ Size: 3.2 MW ‹ PPA: National Grid – 15 years ‹ Construction cost: $20m ‹ Current status: In construction ‹ Energy production start: Q4 2015 ‹ Feedstock: organic waste ‹ Compost: sold to third parties ‹ Expected annual revenues: $6M ‹ Project IRR: 22% ‹ Funding: Entropy - York Capital Group ‹ Ownership – 22.5% 12 Projects Pipeline ‹ AD Projects Acquisition - Definitive agreement to acquire 4 facilities in Italy 2020 • Financial Closing expected April -May 2015 104 MW • 1 MW facilities each fully operational for at least one year • Plants producing high EBITDA of 0.95 MM Euro each • Expected to generate a 25% IRR - 12 more facilities now being evaluated 64 MW Several major projects at various development phase in the US. 2017 42 MW - Additional projects being examined in Canada, England and Israel - Identified portfolio of landfills primarily in SE U.S. - Working in partnership with landfill owners to convert methane gas emissions from landfills into electricity 13 95 MW 2018 ‹ AD Projects Development ‹ Landfill Gas-to-Energy Projects 2019 Projected Accumulated Energy Production 2016 18 MW 2015 12 MW Partners Jointly pursuing project acquisition and development opportunities with some of the biggest names and financial backers in the business • York Capital management is based in NYC and manages $24 billion in assets • York has invested in Blue Sphere’s Charlotte NC and Rhode Island projects • The largest electric power holding company in the United States, supplying and delivering energy to approximately 7.3 million U.S. customers • Blue Sphere signed a 15-year power purchase agreement with Duke Energy (NYSE:DUK) to buy electricity from its NC facility • National Grid is an international electricity and gas company based in the UK and northeastern US • The company has signed a Power purchase agreement for Blue Sphere’s RI plant 14 Management Team Highlights Josh Shoham Chairman Shlomi Palas Roy Amitzur Chief Executive Officer Executive Vice President Steven Paulik Gary Kuehl Mark Radom CFO USA Chief M&A Officer General Counsel 150 + YEARS OF RELEVANT EXPERIENCE 3 AVERAGE YEARS WITH BLUESPHERE Shlomo Zakai CFO Dr. Efim Monosov Gidi Amitzur CTO VP Eastern Sphere 9 TOTAL EMPLOYEES 15 Value Proposition ‹ Financial Strength - Signed agreement with York Capital and will receive $5 million in cash for the next 12 months for closings on 2 facilities - Continuous revenue stream of $1.5 million per year for the next 15 years from two AD plants in US with a signed PPA - $700 thousand per year for 13 years from initial 4 plants in the process of being acquired in Italy ‹ Geographical Market Focused - The US market is in a rapid growth and Blue Sphere is gaining strong foothold in the market - In Italy Blue Sphere is profiting from the existing market by acquiring operational facilities - Israel is in the early stages of its waste to energy market development and Blue Sphere is positioned to become a market leader 16 Thank You 17
© Copyright 2024