Under the MOU, ESC will lease a suitable site for the project and arrange the required amounts of food waste for use as feedstock as well as perform maintenance service for the project.
Bluesphere will develop the project and will be responsible for permitting, project finance and operation for the 20-year life of the project.
Bluesphere is also considering working with Austep, its EPC contractor on Bluesphere’s US biogas projects.
The Israel Electric Company, according to Israeli law, is required to buy the power produced from the project and a long-term power purchase agreement will be signed over the coming months.
ESC has the option to acquire up to a 50% ownership stake in the project, upon commencing operations.
Bluesphere CEO Shlomi Palas said: "Israel offers us a unique opportunity insofar as power purchase agreements are awarded to biogas projects as a matter of law.
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By GlobalData"This is normally one of the hardest parts of any project’s development and in Israel we have the power purchase agreement as a given. Moreover, our counterpart will arrange to deliver source-separated organic municipal waste, which is a great feedstock for the project.
"We have carefully implemented our intended strategy of developing promising projects around the world and have now found a big and lucrative project to start with in Israel."
