Rurelec PLC (AIM: RUR), the electricity utility focused on power generation capacity in Latin America, announces that it has been granted  full environmental consent for its Central Illapa Power Plant in Chile, taking it a step closer to the development of the 255 MW open cycle greenfield gas ("OCGT") fired power plant.

The Central Illapa plant will be situated in Mejillones, one of the key power hubs on the Sistema Interconectado del Norte Grande ("SING") transmission system of the Chilean power grid which serves the mining region in the north of Chile and will now proceed to financing.

Rurelec and its original partner on the project, Independent Power Corporation PLC ("IPC"), a UK private developer and power plant operator, intend to install turbines initially in open cycle with a nominal capacity of 255 MW which will run on LNG from the neighbouring GNL Mejillones regasification terminal.  There is then the potential to convert to a 358MW combined cycle power plant as a second stage development if circumstances warrant.  Rurelec currently owns 100 per cent of the Central Illapa project company but is in negotiations with outside investors to sell half of its shareholding.

Commenting on the approval, Peter Earl, CEO of Rurelec said:

"We are delighted to have received the full environmental approval for the Central Illapa Project.  Such approvals are very hard to obtain and this takes us closer to the construction phase of the plant. Chile's demand for power continues to grow and we believe our experience puts us in a good position to capitalise on opportunities as world demand for copper drives Chile's strong mining sector in the north of the country where our new plant will be located.

"We remain committed to our expansion in Chile and are working towards our target to own over 1,250MW of new Clean Tech power generation capacity in Chile and to obtain a quotation on the Santiago Stock Exchange."

For further information please contact: