15th May 2014 07:00
Rame Energy / Index: AIM / Epic: RAME / ISIN: JE00BBD8GG53 / Sector: Energy
15 May 2014
Rame Energy plc ("Rame" or the "Company")
Commences Construction of the 15MW Raki/Huajache Project
Rame Energy plc, the international energy consultant, engineer and power generator, is pleased to announce that the mobilisation of site equipment and site clearance at the Company's 15MW Raki/Huajache Project ("the Project") in Chile has commenced. This is an important milestone for the Project, comprised of 9MW at the Raki site and 6MW at Huajache, which is scheduled to become operational in Q4 2014 and is in line with the Company's strategy to become an independent power producer ("IPP") in Chile.
Turbine supplier Vestas is undertaking the civil work, which includes the construction of access roads, as part of its Engineering Procurement Construction ("EPC") contract. After construction of the roads has been completed, the five concrete foundations will be built before turbine erection starts in October 2014.
The Project's equity was funded under a joint venture with Santander, in which Rame has a 20% equity participation. Following commissioning of the Project, the power will be sold to EKA Chile S.A., a joint venture between AkzoNobel and Celulosa Arauco y Constitución S.A. ("Celulosa"). Under the terms of the Power Purchase Agreement ("PPA") signed with EKA Chile S.A., the latter will purchase all the energy produced by the Raki and Huajache projects for a period of 10 years. AkzoNobel is a leading global paints and coatings company and a major producer of specialty chemicals and Celulosa is a Chilean company and a leader in sustainable forest products.
Rame CEO Tim Adams said, "Construction of the 15MW Raki/Huajache projects has started ahead of schedule, overseen by Rame as Project Manager, representing an important achievement as we set our sights firmly on achieving an operational capacity of 24MW across three projects in Chile by quarter one of 2015. Having already secured a blue chip purchaser for the power generated at the project which provides a visible revenue stream over the next 10 years, we are on course to become an IPP in Chile later this year, and well placed to build an operational portfolio of 300MW of generating assets in Latin America within the next three years."
**ENDS**
Enquiries
Rame Energy plc | Tel: +44 (0) 1752 565638 |
Tim Adams (Chief Executive) |
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Jan Gawel (Finance Director) |
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Northland Capital Partners Limited | Tel: +44 (0) 20 7382 1100 |
Nominated Adviser and Broker | |
Matthew Johnson/ Lauren Kettles (Corporate Finance) | |
Louis Castro (Corporate Broking) | |
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St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
Elisabeth Cowell / Frank Buhagiar |
Notes
Rame is an established revenue generative global supplier of cost effective, technically optimised and reliable power generation solutions including wind, solar and diesel to blue chip clients such as Akzo Nobel, Anglo American, Barrick Gold and Codelco. The Company has executed its first joint venture agreement with Santander Investment Chile Limitada to co-finance its first two wind projects totalling 15 MW, in which Rame will have a 20% equity participation. The debt package for the two projects is being provided by Chilean bank, Banco BICE.
Rame aims to become a niche Independent Power Producer ("IPP") targeting an operational portfolio of 300MW in Latin America within three years. The Company plans to build on its proven track record of delivering power in South America where it has been involved in the development of approximately 23% of Chile's installed wind power capacity (as at 31 December 2013).
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