Chilean hydro developer Energia Austral confirmed it has submitted the results of extra geological studies, as part the ongoing environmental impact study for its 640 MW Cuervo hydropower plant.

The power station will be located on the southern region of Aysen.

The project was approved in May 2012, but the Supreme Court then ordered new studies to confirm its environmental viability, Seenews reported.

According to local daily El Divisadero, the conclusion of the studies is that the project will not increase the volcanic risk in the area close to the location of two volcanoes – 40 km northwest of Puerto Aysen city.

Energia Austral is now expected to consider options for the power line that will transport Cuervo’s output. One of the options includes a subsea stretch.

Energia Austral is a joint venture between Australia’s Origin Energy and Glencore Xstrata, one of the world’s largest global diversified natural resource companies.

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