Blue Earth Announces Binding MOU for ~$20 Million to Build and Operate 6 Solar PV Projects in New Jersey
Revenue From Third Party EPC Contracts for New Jersey and Hawaii Will Significantly Accelerate Revenue Growth From Solar PV Projects for the Remainder of 2013 and Through the First Part of 2014 as Compared to the Entire 2012 Fiscal Year and the First Six Months of 2013
HENDERSON, NV -- (Marketwired) -- 08/05/13 -- Blue Earth, Inc. (OTCQB: BBLU) a renewable energy and energy efficiency services company, announced today that its wholly owned subsidiary, Xnergy Inc., entered into a binding Memorandum of Understanding ("MOU") to construct 6 solar PV projects in the State of New Jersey. The engineering, procurement and construction ("EPC") revenue for the Company is approximately ~$20 million.
Under the binding MOU, Xnergy will provide EPC services for the approximate 12.6 megawatts of solar PV projects. The EPC work is expected to commence in the third quarter of 2013 and be completed during the first quarter of 2014.
"These six projects, combined with the previously announced 24 Hawaii solar PV projects (~$6 million) are expected to generate over $26 million in EPC revenues for BBLU over the next nine months," stated Dr. Johnny Thomas, CEO of BBLU. "Management anticipates concluding negotiations for additional solar EPC contracts of similar size, and they are expected to begin construction during this fiscal year."
In addition, BBLU expects to finish several Company owned solar PV projects and commence construction on other BBLU owned solar PV projects during this third quarter. It should be noted that a significant portion of the cash used for operations in the second quarter and the cash being used in the current quarter is for project development, as opposed to corporate expenses. These dollars are expected to be returned to treasury when projects are completed, through the sale of some projects or through a combination of tax equity investors and debt, which allows BBLU to retain ownership and make these projects part of our IPP (independent power producer) portfolio.
The cash position of BBLU was significantly improved during the quarter and debt was decreased, resulting in improved shareholder equity. BBLU's improved cash position has enabled the seven large CHP projects to progress in a timely manner. Our goal is to quickly become a large IPP by retaining ownership of these projects, which will result in minimal EPC revenue recognition in the short term in order to maximize recurring revenues over the next 20 years through PPAs. Management expects the initial seven CHP projects to be completed during the mid part of 2014.
Revenues from the energy efficiency division of our business are expected to increase during the second half of 2013, as utilities begin to deploy funds from the new three-year funding cycle for utility rebate programs. The new three-year utility rebate programs have more dollars available for deployment than the preceding program cycle. Our e-commerce unit of the EE division is experiencing significant growth on a month over month basis and we expect this trend to continue.
Xnergy is a full-service EPC (Engineering, Procurement, Construction) firm, which has engineered, installed, and/or commissioned over a 100 MW of traditional and alternative energy systems. Energy provides a broad range of comprehensive energy solutions including the design and implementation of energy savings projects, energy conservation, energy infrastructure outsourcing, power generation and energy supply and risk management. Xnergy currently serves private and public clients from all industries throughout the United States and helps them minimize their energy consumption and reduce their carbon footprint.
BBLU is engaged in the clean technology industry with a primary focus on the energy efficiency and renewable energy sectors. We strive to participate in the global movement for a sustainable planet by offering products and services that will optimize energy use, reduce harmful environmental emissions and substantially reduce energy costs to our customers. For more information about Blue Earth, Inc., please visit www.blueearthinc.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release are forward-looking statements. These statements relate to future events or to the Company's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company's control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. Such risks, uncertainties and other factors, which could impact the Company and the forward-looking statements contained herein are included in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Investor Relations Contact:
Blue Earth, Inc. John C. Francis Vice President www.blueearthinc.com 702.263.1808 Ext. 103 firstname.lastname@example.org
Liviakis Financial Communications, Inc. Michael Bayes President www.liviakis.com 415.389.4670 Michael@Liviakis.com