Cat Financial to finance Blue Sphere AD project
Blue Shere Corp.’s proposed 5.2 MW anaerobic digestion project in Charlotte, N.C., has received a signed commitment letter from Caterpillar Financial Service Corp., the financial division of Caterpillar Inc., to provide $17.785 million in debt financing. The commitment is 100 percent of the debt financing required for the project.
Blue Sphere, along with its German-based partner Biogas Nord AG, is acting as integrator of the project though its joint venture company, Bino Sphere.
With the debt financing commitment in place, Blue Sphere is completing all closing conditions, including investment tax credit monetization, feedstock supply and permits. The company expects to break ground on the project during the third quarter of this year, with completion expected during the third quarter of 2014.
According to information released by Blue Sphere, it will retain a 37.5 percent ownership position in the Charlotte project. The company is also developing a 3.2 MW anaerobic digestion project in Rhode Island. That project is expected to break ground before the end of the year.