Maple Energy plc, an AIM listed integrated energy company with assets in Peru, provides an update on its ethanol project.
The Company recently signed a contract with Plasticos Rival CIA LTDA. (“Rival”) for the supply of glass reinforced polyester pipe and fittings to be used in connection with the main water conveyance system for the Ethanol Project’s sugar cane plantation. The pipe will be used for the construction of the main water conveyance system’s pipelines. The system will transport water from the Company’s two main pumping stations on the Chira River to the sugar cane plantation where the water will be used for irrigation. Construction of these pipelines began in June 2009 using materials previously purchased from Rival.
Under the terms of the supply agreement with Rival, Maple will pay approximately US$10 million to Rival over a period of approximately eight months. Supply of approximately 45 kilometres of glass reinforced polyester pipe and fittings is expected to be delivered on a monthly basis with the final delivery due in the first quarter of 2010. The Company expects the first phase of the main water conveyance system to be in operation by the fourth quarter of 2009.
Rex Canon, CEO of Maple Energy, commented:
“This is a further step forward for Maple’s very exciting Ethanol Project and another demonstration of our commitment to providing Peru with access to clean energy. This is a key investment for this project as the pipeline will provide a secure supply of water for irrigation to the sugar cane plantation.”
“Viewed together with our drilling campaign on Block 31-E, it is clear that Maple is making real progress across its portfolio of diverse assets. I look forward to reporting on more progress in the coming weeks and months, and at our Annual General Meeting in August.”