LONDON (Alliance News) - Greka Engineering & Technology Ltd said Monday it has signed a three-year power supply contract in China with Jiaqin Agriculture Co.
The company said Jiaqin is developing an agricultural project within Greka's existing catchment area and the gas-to-power electricity will be generated from Greka's integrated production facility.
Greka said Jiaqin has agreed to pay above-market rates for this supply as its power plant is "environmentally progressive and reliable.
Revenue from this contract is expected to commence in May. with additional engineering services and expertise also being provided by Greka.
The financial terms of the deal were not disclosed. Greka said pricing terms between the parties are confidential. The power will be generated from gas under the terms of Greka's existing contract with Green Dragon Gas Ltd.
The contract with Jiaqin Agriculture is expected initially to supply 1,700 megawatt hour of power a year.
Greka shares were trading at 4.34 pence Monday, up 0.59 pence or 16%, making it one of the day's biggest gainers.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
Copyright © 2014 Alliance News Limited. All Rights Reserved.