Ram Power, Corp. (TSX: RPG) (“Ram Power” or the “Company”), a renewable energy company focused on the development, production and sale of electricity from geothermal energy, is pleased to announce the commercial operation of its newly completed Phase II expansion of the San JacintoTizate project (the “Phase II Expansion”).
The Phase II Expansion is continuing to undergo a series of operational and performance tests required by the Company’s turbine supply contract with Fuji America and its Phase II Expansion loan documentation, including turbine performance tests, a capacity test, a 7-day reliability test and a 30-day availability test.
The 72 MW (net) San Jacinto Project (the “Project”) broke ground in December of 2009, and replaces the original 10 MW geothermal power plant installed in 2007. The 9,800 acre San Jacinto-Tizate geothermal area is considered by geothermal industry experts to be one of the most productive volcanic reservoirs in Latin America. The Project sells all of its energy and capacity to Disnorte-Dissur, a Gas Natural Fenosa company, under a long term power purchase agreement.
Nicaragua’s National Development Plan calls for 94% of the country’s electricity needs to be sourced from renewables by 2017. The Project is an essential component for Nicaragua’s continued infrastructure development, selling power at 37% below the average wholesale electricity price in Nicaragua. The Project will generate approximately 17% of Nicaragua’s total electricity needs, helping Nicaragua to meet its 2013 goal of providing 50% of its total electric energy from renewable sources. The Project created more than 600 jobs during peak construction and will have approximately 100 full time employees during operations.
“We are pleased with the on-budget performance of our team during the Phase II Expansion,” stated Tono Rodriguez, Vice President and COO of Latin America for Ram Power. “The Project’s Fuji America turbines have exceeded our expectations in terms of their efficiency and performance.”
As previously announced, the Company plans to continue exploring the expansion at San Jacinto with the addition of a binary unit or “bottoming cycle” which has the potential to add approximately 10 MW net of additional capacity.
“The Company and its capable San Jacinto team have greatly benefited from the collective experience acquired during Phase I construction, commissioning and sustained operation, making the Phase II construction and commissioning program a much more efficient and effective experience,” stated Shuman Moore, President and CEO of Ram Power. “I would especially like to thank the Phase II lending syndicate led by the International Finance Corporation, a member of the World Bank Group, and the consortium of lenders including the Inter-American Development Bank (“IDB”), Central American Bank for Economic Integration (“CABEI”), Deutsche Investitionsund Entwicklungsgesellschaft mbH (“DEG”), Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden
N.V. (“FMO”), Oesterreichische Entwicklungsbank AG (“OeEB”) and Société de Promotion et Participation pour la Coopération Economique (“PROPARCO”) for their continued cooperation and support to ensure the successful completion of the Phase II project expansion.”
Ram Power is a renewable energy company based in Reno, Nevada, engaged in the business of acquiring, exploring, developing, and operating geothermal properties, and has interests in geothermal projects in the United States, Canada, and Latin America.
This news release contains certain “forward-looking information” which may include, but is not limited to, statements with respect to future events or future performance, management’s expectations regarding the Company’s growth, results of operations, estimated future revenues, requirements for additional capital, revenue and production costs, future demand for and prices of electricity, business prospects and opportunities. In addition, statements relating to estimates of recoverable geothermal energy “reserves” or “resources” or energy generation are forward-looking information, as they involve implied assessment, based on certain estimates and assumptions, that the geothermal resources and reserves described can be profitably produced in the future. Such forward-looking information reflects management’s current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “predicts”, “intends”, “targets”, “aims”, “anticipates” or “believes” or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current geothermal energy production, development and/or exploration activities and the accuracy of probability simulations prepared to predict prospective geothermal resources; changes in project parameters as plans continue to be refined; possible variations of production rates; failure of plant, equipment or processes to operate as anticipated; accidents, labor disputes and other risks of the geothermal industry; political instability or insurrection or war; labor force availability and turnover; delays in obtaining governmental approvals or in the completion of development or construction activities or in the commencement of operations; as well as those factors discussed in the section entitled “Risk Factors” in the Company’s Annual Information Form. These factors should be considered carefully and readers of this news release should not place undue reliance on forward-looking information.
Although the forward-looking information contained in this news release is based upon what management believes to be reasonable assumptions, there can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Such forward-looking information is made as of the date of this news release. Other than as required by applicable securities laws, Ram Power assumes no obligation to update or revise the information contained in this news release to reflect new events or circumstances.
Source: Ram Power
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