Latin American electricity utility Rurelec is to enter the Chilean market for the first time via a joint venture deal to build a 38 MW diesel fired power plant in the port city of Arica.
Rurelec has bought a 50 per cent stake in Termonor, a Chilean company developing the $4m plant with domestic development and construction firms Invener and Enerbosch. Rurelec will put up $2m of the costs while Invener and Enerbosch will provide the remainder.
Rurelec, which is incorporated in the UK and listed on the London Stock Exchange, is already active in Argentina, where it operates a 136 MW open cycle gas turbine plant, and Bolivia, where it is the country’s largest power producer.
It has been seeking an entrance to Chile for the past four years and chief executive Peter Earle said the Termonor deal “represents a hugely significant first step for us”.
He added: “We hope that 2012 will see Rurelec become the dominant new entrant in the Chilean power system.”
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