Polaris Energy Nicaragua issues start order for San Jacinto expansion
Polaris Energy Nicaragua S.A. announces the formal Start Order and initial payment to its main construction contractor, Construtora Queiroz Galvao for the construction of the 24 MW Phase 1-MCT expansion at the San Jacinto-Tizate geothermal power project.
In a release by the company, Ram Power Corp (TSX: RPG), through its wholly owned subsidiary, Polaris Energy Nicaragua S.A. (“PENSA”), announces that it has issued a formal Start Order and made the initial payment to its main construction contractor, Construtora Queiroz Galvao for the construction of the 24 MW Phase 1-MCT expansion at the San Jacinto-Tizate geothermal power project near Leon, Nicaragua.
This Phase 1 expansion is the first of two phases designed to expand production of the project from its current 10 MW to 34 MW. Drilling has been fully completed for this expansion. The second phase will expand production from 34 MW to 72 MW. With 56 MW drilled and available behind the well head valves and in view of the results of the previous two production wells, 16 MW and 22.8 MW respectively, the company is only expecting to drill two additional wells to reach the 72 MW net capacity for the next phase. The 72 MW will be sold under a Power Purchase Agreement to local subsidiaries of Union Fenosa, a Spanish based utility. All permits required for the construction of both phases of the expansion have been obtained and commissioning of the new plant is planned for the second quarter of 2011.
Hezy Ram, President & CEO of Ram Power, Corporation, said, “the start order of the planned expansion of the San Jacinto- Tizate is a key element of the overall Ram Power strategy to develop our project pipeline into revenue producing assets and to deliver much needed cost effective geothermal clean energy. The expansion of San Jacinto-Tizate will result in an additional $21 million of annual revenue and reduce carbon emissions by 400,000 tons per year in Nicaragua.”
Tom Ogryzlo, Senior V.P. Latin America Operations for Ram Power said “As part of its strategy, Ram Power has made a major commitment to geothermal energy developments in Nicaragua”. Ogryzlo went on to say, “Our current 10 MW facility generates 56,000 tons of carbon credits annually and the 24 MW expansion will add an estimated additional 135,000 tons of carbon credits. The project also substantially reduces the need for costly oil imports to Nicaragua.”
Source: Company announcement via Newswire