Rame Energy PLC Update on Cerro Coihue Project (4910S)
18 Marzo 2016 - 1:00AM
UK Regulatory
TIDMRAME
RNS Number : 4910S
Rame Energy PLC
18 March 2016
18 March 2016
Rame Energy plc
("Rame" or the "Company")
Update on Cerro Coihue Off Grid Wind Energy Project
Rame Energy plc, the AIM quoted independent power producer and
power project developer, is pleased to update on its 1.8MW off grid
wind project in Patagonia, Chile which will supply energy to
Mandalay Resources Corporation's ("Mandalay") Cerro Bayo gold mine
(the "Mine"). The project, for which Rame has acted as designer and
constructor, achieved construction completion on 14 March 2016 and
permanent energisation and operational start up is anticipated
within two weeks subject to weather conditions at the site.
To achieve the economics required to support a five year power
purchase agreement with Mandalay, Rame elected to utilise three
600kW Vestas V44 turbines that had previously been in operation in
Denmark. The units were dismantled and given a complete overhaul in
Barcelona and were then technically optimised with full power
converters and a new control system to improve output and
reliability, the first time this has been done. After
refurbishment, the turbines, including the towers and blades, were
shipped from Europe to Chile and then transported over 2000 km by
road and ferry to reach the remote mine site with installation
successfully completed over a 17 day period.
The project, which Rame announced on 20 May 2015, has been
financed in cooperation with German partner, Anden Re. Rame has now
repaid the $1.2 million loan used to secure its 25% equity position
in the asset. Upon completion, Rame will receive a final contract
payment worth over $800,000 and its share of the generating
revenue, as an IPP, is estimated to be in excess of $400,000 per
annum. The wind energy generated will offset the diesel based
generation which currently provides power to the Mine.
CEO Tim Adams said "We are delighted to provide an update on the
Cerro Coihue project where we have had to develop an innovative
technical solution to reduce equipment capital costs in order to
provide competitively priced energy against a short term power
purchase agreement. While the initial PPA is only for five years,
the life of the Mine is expected to be significantly more than the
initial five years and so we would expect to roll the PPA forward
in due course. The logistics of transportation to, and construction
at, this very remote location are naturally challenging and it is
critical to avoid any disruption to mining operations. We believe
however, that this project showcases our ability to deliver
attractive power solutions to diesel dependent off grid customers
whilst still being able to support strong financial returns to the
asset owners."
For further information, please visit the Company's website,
www.rame-energy.com or contact:
+44 (0) 1752
Rame Energy plc 565638
Tim Adams, Chief Executive Officer
Kevin McNair, Chief Financial
Officer
Cantor Fitzgerald Europe (Nominated Adviser and Broker) +44 (0) 20 7894 7000
Andrew Craig / Richard Salmond
Tavistock (Financial PR) +44 (0) 20 7920 3150
Simon Hudson / James Collins / Claudia Esnouf
About Rame Energy
Established in 2002, Rame Energy is an experienced Power project
developer and Independent Power Producer (IPP) that seeks to create
value for its stakeholders by developing a portfolio of high
yielding renewable energy projects. We specialise in engineering
on-grid and off-grid wind, solar and hybrid power solutions. Our
primary market focus is Chile, where energy demand outstrips
supply, creating conditions that make the country highly favourable
for renewable power projects.
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This information is provided by RNS
The company news service from the London Stock Exchange
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