Schwager Energy has signed a memorandum of understanding (MOU) with Shenyang Yuanda Commercial & Investment of China for construction of the 5.4-MW Condor small hydro power project in Chile.
According to BNamericas, Schwager has begun detailed engineering that should be complete by May 2017. The company will then calculate the amount of equity needed to develop the project.
The MOU indicates a Chinese commercial bank will finance 85% of the required investment. Schwager may also seek an additional strategic partner to provide a portion of the needed equity.
Condor will be a run-of-river project located in Vilcun in Chile’s southern Araucania region.
Construction is expected to begin in the fourth quarter of 2017, with commercial startup planned for the second half of 2019. It is anticipated to generate 21 GWh of electricity annually.