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RusHydro and UC RUSAL commission first stage of Boguchany aluminium smelter

RusHydro announces commissioning of first stage of Boguchany aluminium smelter (BoAZ), part of Boguchanskiy Energy and Metals Complex (BEMO) developed in cooperation with UC RUSAL. Sergey Menyailo, Presidential Plenipotentiary to the Siberian Federal District, Dmitry Kozak, Deputy Prime Minister of Russia, Alexander Uss, governor of Krasnoyarsk Krai, Nikolay Shulginov, Chairman of the Management Board – General Director of PJSC RusHydro and Evgeniy Nikitin, General Director of RUSAL, took part in the inauguration ceremony at the Krasnoyarsk Economic Forum.

13 years ago an agreement for joint implementation of the BEMO project (includes Boguchany aluminium smelter and 2,997 MW Boguchanskaya hydropower plant), was signed by UC RUSAL and RusHydro at the Krasnoyarsk Economic Forum. The project was executed within a record timeframe as the first hydroelectric units of the power plant were launched in 2012. In 2015, the hydropower plant ramped up its capacity to 2,997 MW. Smelter’s annual operational capacity is estimated at 298 thousand tons of aluminium.

By scope and characteristics, the BEMO project has no rivals. It is the largest energy-metals investment project in the world and the first major public-private partnership in Russia. Its launch brought with it a massive power base necessary for industrial development of Lower Angara region. 10,000 new jobs have been created at its facilities. 

Evgeniy Nikitin, General Director of RUSAL commented: “The launch of the first stage of Boguchansky aluminium smelter is an example of a major successful project development in the Russian industry. BoAZ’s launch along with the already commissioned Khakas aluminium smelter and currently under construction Taishet smelter will not only increase output of competitive products but also contribute significantly to social and economic development of Siberia and the entire country”.

Nikolay Shulginov, Chairman of the Management Board – General Director of PJSC RusHydro added: “Boguchanskaya HPP, the fifth largest hydropower plant in Russia by installed capacity, is one of the most modern and efficient hydropower plants not only in Russia but globally. The energy source was developed alongside the smelter, its major electricity consumer, making BEMO a truly unique project in modern Russia. Boguchanskaya HPP has already produced 70 TWh of electricity, well above the annual consumption of the entire Krasnoyarsk Krai”. 

Total funding of the smelter’s first phase amounts to USD 1.69 bn. It is being financed by RUSAL’s and RusHydro's own funds along with project financing from Vnesheconombank (VEB).

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Boguchany aluminium smelter is one of the most modern and largest smelters in Russia. Construction of the facility is carries out in Krasnoyarsk Krai, the heart of Russia, on the territory of over 2.3 square km (231 hectares).

Production at BoAZ complies with international environmental standards of aluminium production including ISO 14001 environmental safety standard. The project’s construction has been developed according to RUSAL’s environmental policy and human safety aimed at reduction of gas emissions throughout the entire technological chain of aluminium production.

Boguchanskaya HPP with installed capacity of 2,997 MW is located on the Angara River in the Krasnoyarsk Krai near the city of Kodinsk is the fourth lower step of the Angara cascade and the fifth largest hydropower plant in Russia in terms of installed capacity. PJSC Buguchanskaya HPP, a joint venture between PJSC RusHydro and UC RUSAL, operates the HPP.

Construction of the facility, which initially began in 1974, became the longest in Russian hydropower history. Following the breakup of Soviet Union, construction has slowed down until it almost came to a halt in 1994. It resumed only in 2006 under the BEMO project.

In the period of 2013 – 2014, all ten hydroelectric units, each with installed capacity of 333 MW, have been commissioned, setting a record in post-Soviet hydropower industry. In 2015, the station’s reservoir was filled to its design crest level and the hydropower plant reached its full capacity. Construction of the facility has been completed in 2017. In 2018, Boguchanskaya HPP produced 13,610 GWh of electricity (and increase of 2.4% as compared to 2017).

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 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.
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