If the project proceeds, Blue Sphere will be the investor and co-developer of the project together with Hanmei Straw Cogeneration Co., Ltd. There are potentially three sources of income at the project: electricity, heat and CERs.

Blue Sphere and its co-developer have estimated that the annual electricity generated could be 140.8 million Kwh, the annual heat supply could be 240,000 m3 and annual CERs could be 172,406. If the full potential were reached, the annual income from electricity is estimated to be RMB 102.8 million (USD $15 million), income from heat is estimated to be RMB 28.8 million (USD $4.2 million) and income from CERs is estimated to be Euro 1.56 million (USD $1.9 million) calculated as Euro 9.00/CER.

The plant is intended to supply 140,800 MWh of electricity to the Central China Power Grid and supply 240,000 m3 of heat to local residents and entities annually. Electricity and heat would be generated by burning biomass residues (straw residues) available within a 35 - 40km radius of the proposed project activity.

To date, important project approvals have been granted, and the FSR and EIA studies are issued and approved. The project is conditional on the satisfactory completion of due diligence, legal review and documentation by the Co-Developer, satisfactory financing and a further and fuller binding agreement being agreed between the parties.

The total investment for the project debt and equity is estimated at $38 Million USD.