RusHydro and Japanese companies will jointly build a wind-diesel project in Yakutia
February 27, 2018. Moscow, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces the signing of memorandum of understanding with New Energy and Industrial Technology Development Organization (NEDO) and the government of the Sakha (Yakutia) Republic to build a 3.9 MW wind-diesel complex in Yakutia.
The signing ceremony to build a unique wind-diesel complex in Russia took place in Moscow today. The project will be built in Tiksi village of the Sakha (Yakutia) Republic. Nikolay Shulginov, Chairman of the Management Board – General Director of PJSC RusHydro, Toyohisa Kozuki, Japanese Ambassador to Russia, Takashi Omote, Executive Director of NEDO and Egor Borisov, Head of the Sakha (Yakutia) Republic, took part in the ceremony.
The signed memorandum of understanding formalizes agreements between the parties to build a wind-diesel complex. Concurrently, Sakhaenergo AO and Takaoka Toko, the project’s initiator from the Japanese side, signed a cooperation agreement defining responsibilities in the course of project’s implementation.
According to the agreement, the Japanese side will supply the main equipment at their own expense and RusHydro will be responsible for construction and installation works. The windmills and electric power lines are scheduled for completion by December 2018, and assembly of diesel generators and distribution and storage system – by the end of 2019. RusHydro has already begun the construction of windmill foundations in the village of Tiksi.
By the end of 2020, at the conclusion of the project’s demonstration period of operation, the Japanese ownership in the complex will be gratuitously transferred to the Sakha (Yakutia) Republic. JSC Sakhaenergo, a subsidiary of RusHydro Group will be responsible for the project’s operation.
A wind-diesel complex, unique in its kind in Russia, with a capacity of 3.9 MW will improve power supply reliability of an isolated polar village Tiksi and reduce its dependence on expensive diesel fuel. For the first time in Russia’s history three windmills with a combined capacity of 0.9 MW, diesel generators with a combined capacity of 3 MW and an energy storage system will be integrated into an automated complex.
The windmills will be specifically designed for operations under severe environmental conditions of the Arctic Circle while the diesel generators have the ability to run on crude oil, marine fuel and diesel fuel, contributing to improvement of power supply reliability and reduction fuel cost.
Taking into account the project development and operational experience of the complex, RusHydro will give consideration to carry out similar projects, primarily in the Kamchatka and Chukotka.
The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially from these statements. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to RusHydro and its operations.
Shares / ADR