The joint venture will develop, construct and operate a 3.2MW biogas generation facility under the management of Entropy Investment Management.
Under the terms of the deal, Blue Sphere owns 22.75% stake in the project. It has secured an initial payment of $1.48m in cash. Two payments of $562,500 each will be made later this year once the project achieves mechanical completion and commercial operation.
Blue Sphere CEO Shlomi Palas said: "We closed on a joint venture to develop a second significant food waste to energy facility in the United States, which, under the current construction timeline for the project, is anticipated to commence production and sale of electricity during the fourth quarter of 2015.
"We booked our second round of revenue in the history of the company from the cash payment received at the closing of the joint venture, and upon successful completion of the project, expect to earn regular revenue from the sale of electricity, compost and feedstock tipping fees."
