Dark Horse Resources (ASX:DHR) formerly Navaho Gold is gathering pace with its power generation initiatives and partnering to bring additional base load power to Argentina's stretched grid.
The company has signed an MoU with Sunset Power Pty Limited which has successfully planned the development of six gas‐fired power stations in Australia over the last 15 years, forming ERM Power Limited to construct and operate the utilities.
Under the agreement, the partners would look to identify the opportunity for critical base load thermal coal fired power station at the Pico Quemado coal project in Western Argentina.
This would involve providing power to the local region and into the main Argentinian electricity supply network which relies on imported LNG to meet a major portion of the country’s base‐load power demand.
Current electricity supply is stretched and expensive to use in Argentina.
Given similar low‐sulphur coal as in NSW, the opportunity is there to develop low‐cost domestic‐fuelled base load power for Argentina from this domestic coal resource in global best practice clean coal‐fired power plants.
Dark Horse and Sunset will negotiate a power purchase agreement with Argentine energy authorities for using the coal from the Pico Quemado Coal Project as the fuel source for the proposed new major base‐load power station.
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