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Ram Power Corp. begins construction of major geothermal project in Nicaragua

^{Published on 2009-12-15 10:37:57 - Market Wire}
 

RENO, NV, Dec. 15 /CNW/ - Ram Power, Corp. (TSX: RPG) ("Ram Power"), through its wholly owned subsidiary, Polaris Energy Nicaragua S.A. ("PENSA"), is pleased to announce that it has commenced the on-site construction of the 36 MW Phase 1 expansion at the San Jacinto-Tizate geothermal power project near Leon, Nicaragua. The gala official groundbreaking ceremony for the expansion was attended by the President of Nicaragua, the honorable José Daniel Ortega Saavedra, the Ram Power Board of Directors led by Chairman Chris Thompson, Hezy Ram, President and CEO of Ram Power, Tom Ogryzlo, Ram Power's Senior Vice President for Latin America, and other distinguished guests.

The Phase 1 expansion is the first of two phases designed to expand production of the San Jacinto-Tizate geothermal power project to 46 MW from its current 10 MW, and ultimately to its full 72 MW by the end of 2011. The expansion represents the first step in bringing state of the art geothermal technology to an already operational utility scale power facility that will supply cost effective geothermal energy to the region.

With 56 MW drilled and available at the production well heads, and the two most recently drilled production wells tested at 16 MW and 22.8 MW respectively, the company is expecting to drill only two additional production wells to reach the full 72 MW net capacity. The 72 MW electrical production will be sold under a long term Power Purchase Agreement to local Nicaraguan subsidiaries of Union Fenosa, a Spanish based utility. All permits required for the construction of both phases of the expansion have been obtained and commissioning of the full 72 MW plant is targeted for the fourth quarter of 2011.

Chris Thompson, Chairman of Ram Power, said "The groundbreaking for the San Jacinto-Tizate facility represents a milestone in Ram Power's mission to be the premier provider of geothermal energy in Central America. We see this region, especially Nicaragua, as an area where our company can develop stable, long term energy supply relationships."

President José Daniel Ortega Saavedra said that his government has given all the necessary support to PENSA to expedite the process and now he is pleased with the results. He went on to say that the ground breaking is a very significant step forward for the project and since his government took over they have created the conditions for the project to reach the planned Phase II generation of 72 MW.

About Ram Power, Corp.

Ram Power is a renewable energy company based in Reno, Nevada engaged in the business of acquiring, exploring, developing and operating geothermal properties and has an interest in geothermal projects primarily in California, Nicaragua and Nevada.

Cautionary Statements

This press release contains "forward-looking information" within the meaning of applicable securities laws including information regarding the business of Ram. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by this information. The statements in this press release are made as of the date of this release. Ram Power undertakes no obligation to update forward looking information, other than as required by law, or comment on analyses, expectations or statements made by third-parties in respect of Ram, or its financial or operating results or its securities.