Grid Connection Complete & COD Accepted : Commisioning Phase for Blue Sphere’s 5.2MW Anaerobic Digestion Biogas Plant in Charlotte
Utility firm Duke Energy has accepted the notice of Commercial Operations Date (COD) from renewable energy and biogas developer, Blue Sphere, for the Anaerobic Digestion facility that it has been developing in Charlotte, North Carolina where both firms are based.
Blue Sphere said that the facility, which recently connected to the electrical grid with Duke Energy, will now enter the mechanical completion, feedstock ramp-up and commissioning phases of the project.
These phases include the gradual intake of waste from our feedstock suppliers, increasing the biogas production and renewable energy generation, commissioning the wastewater and digestate treatment systems and completing all other mechanical features needed for the plant to operate at full capacity.
This ramp-up and commissioning period is expected to take approximately three to four months and at that time the project will be fully operational generating its “name-plate” electricity output.
According to Blue Sphere the milestone of connecting the anaerobic digestion facility to the electrical grid also triggers certain financial changes it. The company will now recognise a portion of the deferred revenues listed in the liabilities section of the balance sheet as equity.
The North Carolina biogas plant will generate 5.2 MW of renewable electricity. The energy produced by this facility will be purchased under long a term power purchase agreement (PPA) with Duke Energy.
Once fully operational, the facility is estimated to produce annual revenue of approximately $10 million and Operating Income of approximately $7.3 million. Blue Sphere owns 25% of the project.
The amount of deferred revenues that will be recognised as equity will be approximately $5.5 million. The company said that this change will be reflected in its year-end financial reporting.
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