Nicaraguan Geothermal Project Prepares to Go Online

[] Polaris Geothermal of Toronto, Canada has begun work at its San Jacinto Geothermal Power Project in Nicaragua. These activities comprise testing of systems and components of the plant and steamfield as a prelude to entering commercial power production. During the month of April, the company will be testing three primary components of the project: the steamfield, which encompasses production wells, above ground piping and separation equipment, the re-injection systems and associated control systems; the substation; and the transmission line. Once these components have been satisfactorily tested, Polaris will prepare the site for power production. Transmission lines and the switchyard should be operational by late April, and in May the production wells will be opened and the “Steam Blow” will take place to clean and ready pipelines for final connection. and start-up of the two 5 MW backpressure turbine generators. Reliability testing on each of the 5 MW generators is scheduled to begin in late May with a maximum duration of 28 days. During reliability testing, the power generated can be sold under the Company’s 20-year power purchase agreement with the local distributor, a subsidiary of a large international utility company. This testing is the final step for entering commercial power production.


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