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2nd March 2009
The Directors of Rurelec PLC are pleased to announce that the Company's wholly owned subsidiary in Argentina, Energia del Sur SA ("EdS"), dispatched its first commercial production of power from the new combined cycle unit into the power grid in Patagonia on Thursday 26th February 2009, having successfully commissioned the new 60 MW combined cycle at the end of January.
The new unit is expected to run continuously at 30 MW from now and then increase to the full 60 MW output before the end of March. The new CCGT capacity increases the Energia del Sur plant in Comodoro Rivadavia from 76 MW to 136 MW. However, the significant feature of the plant is that the new capacity produces electricity from waste heat and so significantly improves the operating margin of the energy sold. Furthermore, electricity generated by the new capacity is being sold largely under bilateral contracts, some with large users in the Patagonia region, at prices that exceed those obtained in the spot market. As a result, the Energia del Sur plant is expected to produce markedly higher earnings than in previous years and will become a significant contributor to group earnings.
In addition to electricity sales, EdS will also contribute revenues from the sale of approximately 148,000 CERs in a full year of generation. The contract with the European utility for the forward sale of CERs generated by EdS between now and December 2012 announced on 5th November is currently under review. If the EdS CERS were to be sold at the current market price, income from the sale of CERs over the period would approximate Ä5 million instead of Ä9 million as announced.
For further information, please contact:
Peter Earl
Managing Director Tel. 020 7793 5610
Paul Shackleton / Stewart Dick
Daniel Stewart & Company Tel. 020 7776 6578