PJSC RusHydro and Sibur Holding have signed a power purchase agreement for supply of clean electricity produced by the 320-MW Nizhne-Bureyskaya hydropower plant to the Amur Gas Chemical Complex.
The agreement guarantees electricity supply to the new consumer in the Far East Federal District for 20 years. RusHydro said it is mutually beneficial to both parties as RusHydro now has additional stable demand for electricity while SIBUR does not have to worry about construction of its own power generation facility.
Amur Gas Chemical Complex is the largest facility in Russia for production of polyethylene and polypropylene, and it is currently under construction by SIBUR and Sinopec. Its annual output is 2.3 million tons of polyethylene and 400 thousand tons of polypropylene.
Nizhne-Bureyskaya is located on the Bureya River.
“RusHydro Group’s Far East subsidiaries are able to satisfy the growing electricity demand and provide uninterrupted electricity supply to all investment projects currently under development in the region. This agreement is mutually-beneficial as it ensures price transparency to consumer,” said Victor Khmarin, chairman of the management board – general director of RusHydro.
Dmitry Konov, chairman of the management board of SIBUR Holding, added: “Reduction of adverse effect on climate from production is one of our strategic priorities. The Amur region has an enormous potential of renewable energy sources, which not only satisfies the environmental requirements of our project but also reduces the carbon footprint of our manufactured goods. We will strive for our production to become one of the most environmentally friendly in the country.”
RusHydro is one of Russia’s largest energy producers in terms of installed capacity, with over 400 power generating facilities. The total installed capacity of RusHydro’s power plants is 38 GW.