Blue Sphere Corporation Announces Entry into Agricultural Methane Reduction in the United States
LONDON - Blue Sphere Corporation (OTCBB: BLSP) (the 'Company' or “Blue Sphere”), a company in the Cleantech sector as an Emission Reduction project integrator, is pleased to announce that the Company has started to implement its plan to enter the agricultural methane reduction business in the United States by establishing its new subsidiary, Blue Sphere U.S.A. Inc.
Blue Sphere is planning to enter the exciting new business in the United States agricultural community to reduce methane gas generated by livestock manure and to generate energy from it. It has been determined that the most potentially promising opportunity to generate carbon credits and energy in agriculture is to capture and convert the methane generated by animal manure.
Manure that is treated in a digester is broken down or digested by billions of naturally occurring bacteria known as methanogens and they convert the carbon in the manure to methane gas. Methane is a powerful greenhouse gas and is released into the atmosphere. Carbon credits from animal farms can be generated by capturing and flaring out the methane gas or by cleaning the methane and putting it through a pipeline creating an alternate and renewable source of energy which prevents the methane from entering the atmosphere.
Blue Sphere sees an immense opportunity in this market. The Obama administration announced that it is developing a cap-and-trade program for reducing emissions. This is an important development for the renewable-energy industry because carbon credits created from the use of biofuels and wind energy will help meet established national goals.
Under cap-and-trade, the government sets an annual cap on carbon emissions. President Obama’s budget calls for a cap 14 percent below 2005 emission levels by 2020 and 83 percent below 2005 emission levels by 2050. To assist affected firms, the government will issue a fixed number of credits for emissions under the cap. President Obama proposes to auction off these credits and the money that will be collected from the initial sale of carbon credits - $78.7 billion in the first year (2012) - is included in the president’s federal budget. By 2019, revenues from cap-and-trade are expected to exceed $525 billion. President Obama’s deficit reduction plans heavily rely on this new source of revenue. 1
To offset some of the burden of the program, the president proposes to use some of the auction revenue for tax relief. Approximately $15 billion a year will be used to fund research on new clean-energy technology. A $400-per-person tax credit also is being proposed to help individuals defray the higher energy costs that are expected.2
Blue Sphere has identified a few potential partners in the agriculture industry in the United States and further due diligence is being done to create a partnership. The agricultural industry recognizes the environmental benefits provided by clean energy and the carbon credits provide an additional economic incentive to develop these projects.
Shlomi Palas, CEO of Blue Sphere said “This is a significant opportunity for Blue Sphere. We have set up a U.S. subsidiary and we are considering potential partners at agricultural businesses to implement a methane reduction and Energy producing project and possibly create a source of renewable energy. The Obama administration has set targets for carbon emission reduction and Blue Sphere is poised to provide the project management to assist in emission reductions. We have international clients and the ability to potentially trade carbon credits with our European customers means we are positioned to ensure our clients in the United States get the best price for their carbon credits. This is a very exciting business and now there are options to prove the economic feasibility of capturing and cleaning the methane gas emitted by livestock manure.”
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