Rurelec says projects are progressing well

Power generation company Rurelec got a boost on Wednesday after reporting that its projects are progressing well.

Power generation company Rurelec got a boost on Wednesday after reporting that its projects are progressing well.

The company has decided to focus on Chile and Peru and said the move comes at a time when both countries "urgently need new generation capacity" and when the regional mining companies are looking for reliable and experienced partners to meet the energy needs of their operations.

In Chile the firm is on track to own a 50% interest in Termonor, its subsidiary, which it will eventually own in partnership with Chilean investors. The group also said that it has agreed terms with Independent Power Corporation to acquire its 50% interest of Central Illapa, a Chilean project company developing a 250 MW open cycle gas fired peaking plant in Mejillones, one of the key power hubs on the SING system of the Chilean power grid.

In Peru construction has begun on the first Cascade project in Canchayllo after it secured a $7.2m financing agreement with IIC, a financing arm of the Inter-American Development Bank. The plant size has been increased to just over five MW at a total cost of $11m. Mechanical completion is now expected at the end of 2013 with an in service date of early 2014.

In Argentina the Energia del Sur plant in Commodoro Rivadavia continued to trade as expected and is performing well at the operating level, although it continues to suffer the impact of increased costs as a result of inflation, the company said.

The share price rose 9.52% to 8.62p by 09:30.

NR

Recommended

Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021
What the best-performing investment trusts of the past 20 years can teach us
Investment trusts

What the best-performing investment trusts of the past 20 years can teach us

Forty-two trusts have risen more than tenfold over the last two decades. What made the winners stand out? And how can we identify future outperformers…
12 Oct 2021
Activision Blizzard: a cheap play on videogames
Share tips

Activision Blizzard: a cheap play on videogames

Videogame maker Activision Blizzard has been in the news for the wrong reasons lately. But it has a bright future, says Stephen Connolly.
11 Oct 2021

Most Popular

How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
Inflation is still one of the biggest threats to your personal finances
Investment strategy

Inflation is still one of the biggest threats to your personal finances

Central bankers and economists insist inflation will be gone by next year. We're not so sure, says Merryn Somerset Webb. So if you haven’t started to …
1 Oct 2021
How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021