Aug 8 2006
SUAL Group, Hydro Aluminium and OAO HydroOGK have signed a Memorandum of Understanding setting out perspectives of cooperation on power supply for a new aluminium smelter. The opportunities for constructing the smelter in Far East Russia are being currently reviewed by the SUAL Group and Hydro Aluminium.
The new aluminium facility may become a consumer of power generated by new hydro power plants, respective construction projects are being currently reviewed by OAO HydroOGK. The list of potential sources of power supply includes Bureyskaya HPP, Nizhnezeiskaya HPP and Nizhnebureyskaya HPP along with hydro power plants integrated in the South Yakutia Hydro Generation Complex.
The annual demand of the smelter with the stipulated capacity of 600k tonnes of primary aluminium a year is estimated at circa 9bn KWh, which is more than one fifth of the current cumulative output of the Far East power grid. One of the pacing factors of successful smelter construction project implementation is 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.