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Wednesday, June 23, 2010

Cleantech Stocks; Blue Sphere Corporation (OTCBB: BLSP)Announces Term Sheet with Huishan Group for 17 Dairy Farms in China

Cleantech Stocks; Blue Sphere Corporation (OTCBB: BLSP) Announces Term Sheet with Huishan Group for 17 Dairy Farms in China


LONDON--Cleantech News (http://www.investorideas.com/ cleantech stocks blog )--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 it has signed a non-binding term sheet for the construction of an anaerobic fermentation methane production system and a 5.66 MW power generation system at what is thought to be the largest dairy farm in the world in Liaoning Province, China.

“This is a sizable project of great potential for us. We have travelled to China for a number of years building relationships and we are excited to be starting with the Huishan Group on this project.”

.If the project proceeds, Blue Sphere will be the investor and co-developer of the project together with the Huishan Group. Huishan Group is the fifth largest dairy group in China and has 70 dairy cattle ranches, constituting the world’s largest dairy cow base. Huishan has over 60 years experience in cattle farming.



There are three anticipated sources of income if the project proceeds: electricity, sale of organic fertilizer and carbon credits (“CERs”). It is estimated that the potential annual electricity generated could be 37,639 MWh, the potential annual fertilizer production could be 619,770 tons and the potential annual CERs generated could be 180,000.

It is also estimated that the potential annual income from electricity is RMB 19.62 million (net of VAT) (approximately USD $2.88 million at current exchange rates), potential income from fertilizer is RMB 20.45 million (approximately USD $3.0 million) and potential income from CERs is Euro 1.62 million (approximately USD $2 million) calculated at Euro 9/CER.

The companies have applied to the National Development and Reform Committee of China (NDRC) to deem this a national pilot project. If approval is granted subsidies and preferential policies could potentially be allocated to the project.



Conditions to proceed with the project include due diligence and capital raising for the investment required, among other conditions. The total investment for the project is estimated at $30 Million USD.



Shlomi Palas, CEO of Blue Sphere Corporate said: “This is a sizable project of great potential for us. We have travelled to China for a number of years building relationships and we are excited to be starting with the Huishan Group on this project.”

China ratified the Kyoto Protocol in 2005. Projects to reduce greenhouse gas emission in China are eligible for carbon credits through the Clean Development Mechanism (CDM). China has already begun projects reducing CO2 emissions from power generation from biomass residue congestion.

For further information please contact the company at 888-309-9088 or info@bluespherecorporate.com

About Blue Sphere Corporation
Blue Sphere Corp. is a company in the cleantech sector as an Emission Reduction Project Integrator. Blue Sphere develops projects for greenhouse gas emission reduction and renewable energy production. The company aspires to become a key player in the global carbon reduction market, helping enterprises with high pollution emissions achieve their green goals. For further information please visit the Company's website http://www.bluespherecorporate.com/
This news release contains “forward-looking statements.” Statements in this press release, which are not purely historical, are forward-looking statements and include statements concerning the Company’s business outlook or future economic performance, anticipated revenues, expenses or other financial items; plans and objectives related thereto; and assumptions or expectations relating to any future events, conditions, performance or other matters. Such forward-looking statements include, among others, that we will finalize contracts and obtain permits to construct and operate a fermentation methane production system and a 5.66 MW power generation system in Liaoning Province, China.; that we can fulfill all conditions to proceed with the project, sign contracts and develop the project to sell electricity, fertilizer and CERs, including successfully raising financing for infrastructure and equipment, use technology that is effective at burning biomass in an environmentally friendly way, and complete the project as expected; that we can sell the CERs generated from the projects at Euro 9/CER; that the project costs are $30 million; that the anticipated income from the various revenue sources will be generated; and that the Company can become a key player in the global carbon reduction market.



Forward-looking statements are subject to risks, uncertainties and factors include, but are not limited to the nature of the carbon credit industry, including changing customer demand, changing regulatory requirements, an immature and unpredictable market for CERs, different regulations across national borders, customer acceptance of our services and products, the impact of competitive services, products and pricing, dependence on existing management, that technology may not work as expected and general economic conditions. In regards to our company, the following are also risk factors: we may not be able to finalize negotiations and sign contracts; our ability to finance operations and growth, our ability to attract and retain employees and consultants, competition from cheaper or more accepted competitors, whether our technology can perform under commercial conditions and our ability to keep control on costs. Sales of electricity, fertilizer and CERs, if realized, does not necessarily mean that our company will be profitable. In addition our company faces political risks in the regions where we operate. Readers should also refer to the risk disclosures outlined in disclosure documents filed by other start up environmental companies with the Securities and Exchange Commission available at www.sec.gov.

The Company assumes no obligation to update the information in this release.
Contacts
Blue Sphere Corporation
Shlomi Palas, 888-309-9088
info@bluespherecorporate.com

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