Deal on power supply for smelter in Russia
(Aug. 7, 2006) Hydro and the Russian companies SUAL Group and OAO HydroOGK have signed a memorandum of understanding in which the companies will explore opportunities to cooperate on power supply for a new primary aluminium smelter. SUAL Group and Hydro are reviewing possibilities to build the smelter in the far eastern part of Russia.
The new primary aluminium plant could become a consumer of power generated by new hydro-electric plants, which are being planned by OAO HydroOGK. The list of potential sources of power supply includes Bureyskaya HPP, Nizhnezeiskaya HPP and Nizhnebureyskaya HPP, along with hydro-electric plants integrated in the South Yakutia Hydro Generation Complex.
The annual demand of the smelter, with the stipulated capacity of 600,000 metric tons of primary aluminium per year, is estimated to be approximately nine billion KWh, which is more than one-fifth of the current cumulative output of the power grid in Russia's far eastern region. One of the driving factors for a successful smelter construction project is the availability of a long-term power supply contract.
If the parties come to agreement on joint project implementation, they expect to negotiate respective agreements and start making all necessary legal and administrative arrangements.
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