Jaguar Energy Guatemala has started work on a 300MW solid fuel fired power generation facility near Puerto Quetzal, Guatemala.
The 300MW solid fuel-fired power plant will be built by China Machine New Energy Corporation.
The $700m plant is a joint venture between energy infrastructure business AEI and the nation's government to improve availability and reliability of electricity in Guatemala.
AEI CEO Jim Hughes said the project will significantly increase the supply of reliable, thermal base-load energy in Guatemala.
"Importantly, this energy will be priced against global solid fuel market prices resulting in competitively priced energy that diversifies Guatemala's energy matrix and reduces the exposure to global oil prices," Hughes said.
The commercial operations at the plant are scheduled for 2013.