OilVoice - Maple Energy Signs Agreement for Ethanol Plant Construction in Peru

Maple Energy Signs Agreement for Ethanol Plant Construction in Peru

Wednesday, December 23, 2009

Maple Energy plc, an AIM listed integrated energy company with assets in Peru, announces that, on 15 December 2009, the Company executed an agreement with Haug S.A., a Peruvian engineering and construction company ('Haug'), for certain works related to its ethanol project (the 'Ethanol Project').

Maple will pay Haug approximately US$25.3 million for the performance of all the works, including the installation of all major pieces of equipment for the Ethanol Project's ethanol plant (the 'Ethanol Plant'), as well as the design, engineering, procurement and construction of the electric transmission and distribution system to connect the Ethanol Project facilities to the Peruvian power grid.

Under the terms of the agreement Haug will install the equipment for the Ethanol Plant, which is designed to have the capacity to process approximately 5,000 tonnes of sugar cane per day, produce up to approximately 35 million gallons of fuel-grade ethanol per year, and generate up to approximately 37 megawatts of electric power. Most of the major equipment to be installed by Haug is being procured by Maple through separate supply agreements with various suppliers including Uni-systems, Inc., Allsoft Engenharia e Informatica Industrial (also know as Mitre), Praj Industries Limited and Siemens AG.

Haug will also design, engineer, procure and construct certain electric transmission and distribution facilities for the Ethanol Project including a 36 kilometer, 60 kilovolt transmission line that will connect the Ethanol Plant to the Peruvian power grid near the city of Piura. These facilities will allow Maple to supply power to the Ethanol Project including the power required to operate the main water conveyance system and the drip irrigation system for the sugar cane plantation. These facilities will also allow Maple to supply any excess power produced to the Peruvian power grid for sale to third parties.

The Company has a 90-day notification period, from the date of execution of the agreement, in which it can instruct Haug to commence work under the agreement.

Rex Canon, CEO of Maple Energy, commented:
"We continue to make excellent progress with our Ethanol Project and are pleased with this latest development. We anticipate Haug will commence work under this agreement during the first quarter of 2010 and will be substantially complete by the first quarter of 2011.'

Review all our latest Alternative Investment Market news and associated company profiles