Peruvian ethanol plant moves forward

March 5, 2009

BY Ryan C. Christiansen

Web exclusive posted March 9, 2009, at 3:09 p.m. CST

Maple Energy, an integrated independent energy company with assets and operations in Peru, has awarded Netafim Peru SAC, a subsidiary of Netafim Ltd., a $22 million contract to design and build a drip irrigation system for its subsidiary, Maple Etanol SRL. Maple Etanol is located on an 8,000-hectare (approx. 20,000 acres) sugarcane plantation that will be used for the production of ethanol and electricity.

According to Maple Energy, the drip irrigation system, which will include pumps, filters, and piping, will deliver water to sugarcane in the field.

"We anticipate that the work under the agreement will commence within the next 90 days and will be substantially completed during 2010," said Rex Canon, chief executive officer for Maple Energy. "This further step forward is in line with our expectations and we remain confident that the commercial operation of the ethanol project and the production of fuel-grade ethanol will commence by October 2010."

The $222 million ethanol plant, which will be located near the port of Paita, is expected to process 5,000 metric tons of sugarcane per day, produce 146 million liters per year (39 MMgy) of fuel-grade ethanol, and generate 37 megawatts of electricity, the company said. The project includes building port facilities, such as a tank farm, a 2,750-meter (1.7-mile) long submarine pipeline, and mooring berth. The facility will have the capacity to load vessels at the rate of 4,000 barrels per hour.

In February, Maple Energy awarded a $17 million contract to Consorcio Bajo Chira, a partnership between Haug SA and Corporacion de Ingenieria Civil SAC, to construct the main water conveyance system for the sugarcane plantation. The company said the system will include the construction of two pumping stations on the Chira River, a 40-kilometer (25-mile) water pipeline, and two water reservoirs with a combined storage capacity of 700,000 cubic meters (185 million gallons). Two pump stations will also be built at the reservoirs. The company substantially completed building a temporary water pump station in December 2008 to deliver water to its 400-hectare (988-acre) secondary seed farm. The technical consultant for the sugarcane plantation is Booker Tate Ltd.

Also during the fourth quarter of 2008, Maple Energy awarded a $5 million contract to San Martin Contratistas Generales S.A. to clear and prepare the land for the sugarcane plantation, which is expected to be completed by the end of 2009. Also in the fourth quarter, Maple Energy awarded a $2 million contract to Sugarsoft Asesoría Empresarial Ltda., a Brazilian sugarcane processing and ethanol production technology company, to provide engineering services for the ethanol plant.

In September 2008, Maple Energy awarded a $13 million contract to Uni-systems Inc. to supply sugarcane feedstock receiving, handling, and preparation equipment, sugar juice extraction equipment, and juice treatment equipment for the ethanol plant. Also in September, Maple Energy awarded a $12 million contract to Uni-systems, along with Allsoft Engenharia eInformatica Industrial, http://www.mitreengenharia.com.br to supply the boiler and steam generation equipment for the ethanol plant. The steam will be used to power a steam turbine at the plant to generate electricity and to supply process steam for producing ethanol. The ethanol plant will burn bagasse to generate steam.

In June 2008, Maple Energy awarded a $10 million contract to Praj Industries Ltd. to supply fermentation, distillation, and dehydration equipment for the ethanol plant. Maple Energy also awarded an $8 million contract to Siemens AG to supply a 37-megawatt steam turbine for the facility.

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