25th Apr 2014 11:47
LONDON (Alliance News) - Rame Energy PLC Friday said it has entered a power purchase deal with Empresa Electrica ERNC-1 SpA for its Punta Chome wind project in Chile.
The energy consultant, engineer and power generator said it has secured binding terms for the Chilean energy fund to purchase all the energy generated from Rame's nine megawatt Punta Chome project for ten years from the start of operations at the site.
The Punta Chome site is due for construction in 2014 with power output expected in 2015.
Once the Punta Chome site is completed, the company will have interests in three wind projects totalling 24 megawatts, which is in line with the company's plan to utilise its proven expertise as a revenue generative global supplier of power related engineering and construction services to blue chip clients, to become a leading Independent Power Provider in Chile and possibly beyond.
"We are now becoming a power producer in Chile," Chief Executive Tim Adams told Alliance News earlier in the month. "Our plan of development is totally commercially driven, its about using our experience to sell power privately to large industrial consumers in a country where there isn't enough energy to meet demand."
The company also said it has selected Danish wind manufacturer Vestas Wind Systems A/S to supply three wind turbines for the Punta Chome project and said that Vestas will supply, transport, erect and commission the turbines with Rame undertaking its civil and electrical work.
Rame joined the London's AIM on April 4 and its shares on Friday were trading down 4.1% at 17.50 pence, just below its IPO price of 18 pence.
By Tom McIvor; [email protected]; @TomMcIvor1
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