Under the terms of the joint venture deal, Blue Sphere owns 25% stake in the project and also secured an initial payment of $1,250,000 in cash at the closure.
A second payment of $1,175,000 will be made later in 2015 in two equal installments once the project achieves mechanical completion and commercial operation.
Blue Sphere CEO Shlomi Palas said: "We closed on a joint venture to develop a 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 first revenue in the history of the Company from the cash payment received at the Closing, and, upon successful completion of the Project, expect to earn regular revenue from the sale of electricity and compost and feedstock tipping fees."
