Continental Completes PEIA at Malolo Mini-Grid
DAR ES SALAAM, Tanzania, June 15, 2015 /PRNewswire/ -- Continental Energy Corporation (OTCQB: CPPXF) (the "Company"), an emerging international energy developer, today announced that its Tanzanian subsidiary, Ruaha River Power Company Ltd. ("Ruaha Power"), has completed construction of the central power house at its Malolo Mini-Grid development and installed the first 90 kVA of combined electrical power generation capacity consisting of two embedded units, a biomass gasifier generator and a companion diesel-fired generator.
Tanzanian environmental consultants, Tansheq Ltd., were engaged by Ruaha Power, and conducted a preliminary environmental impact assessment ("PEIA") of the planned operation of the biomass gasification generator at the power house site in Malolo. The PEIA included sampling and laboratory analysis to ensure the plant's emissions meet compliance standards set by Tanzania's National Environment Management Council ("NEMC"). The completed PEIA was filed and NEMC conducted a final on-site examination. The permitting process culminated in a public review meeting held last week by NEMC with local authorities and stakeholders. NEMC staff is now preparing the final environmental compliance approvals, and the permits necessary for start-up of the Malolo gasification generator are expected to follow soon.
"The biomass gasification generator we installed in the Malolo Mini-Grid was the first of its kind delivered in Tanzania and completing the steps required for emissions certifications and environmental permitting for it have taken longer than originally expected," said Company director and Ruaha Power CFO, John Tate, who is in charge of the Malolo Project. "Installation and testing of the biomass gasification generator are now complete. Upon receipt of the final environmental certificates we will commence the build-out of the distribution network for delivering first power to customers. No additional environmental permits are required. The network will be constructed in accordance with technical and safety standards meeting or exceeding those required by Tanzania's Energy and Water Utilities Regulatory Authority."
About Ruaha Power: Ruaha Power is committed to profitably developing and operating customized hybrid electrical power generation and distribution networks ("Mini-Grids") that are isolated from the main national electricity grid, and supply underserved rural and small urban markets of Tanzania. In addition to its first Mini-Grid at Malolo, Ruaha Power is conducting a feasibility study on a 25 MW development of grid-connected generation capacity at potential run-of-river hydropower sites on Tanzania's Lukosi River. Field survey, design, and engineering for the Lukosi River feasibility study is being conducted by a US based engineering firm, partially funded by a grant from the U.S. Trade Development Agency. The Company owns a 65% stake in Ruaha Power.
About the Malolo Mini-Grid: Ruaha Power is constructing its first Mini-Grid at Malolo, a village in the Morogoro Region of central Tanzania. The Malolo Mini-Grid will utilize a hybrid mix of 300 kW of biomass gasification / solar photovoltaic / diesel generation capacity connected to subscribers at pre-pay meters by a custom built local distribution network built to national grid technical standards. An initial feasibility study, which included the Malolo Mini-Grid area and the PEIA, was partially funded by a grant from the Tanzania Rural Energy Agency, made under its Tanzania Energy Development Access program with funds provided by the World Bank and the Global Environmental Fund. The biomass gasifier generator embedded in the Malolo Mini-Grid was supplied by Husk Power Systems of India under a joint venture arrangement with Ruaha Power. Ruaha Power shall own and operate the Malolo Mini-Grid as an independent power producer and distribution network operator.
On behalf of the Company,
Robert V. Rudman, CPA
Chief Financial Officer
Forward Looking Statements - Any statements in this news release that are not historical or factual at the date of this release are forward looking statements. Forward looking statements in this release include Ruaha Power's expectation to profitably develop and operate its Mini-Grids, its construction plans and installation schedule, and the Company's expectations for Ruaha Power's future expansion and commercial performance. There are many factors which may cause actual performance and results to be substantially different from any express or implied plans, estimates, forecasts, expectations, or objectives described in any forward looking statements. Readers should also refer to the risk disclosures outlined in the Company's regulatory disclosure documents filed with the Securities and Exchange Commission available at www.sec.gov. The Company assumes no obligation to update the information in this release. No securities regulatory authority has either approved or disapproved the contents of this news release.
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SOURCE Continental Energy Corporation
Released June 15, 2015