Krasnoyarsk, March 29, 2019 – RUSAL (SEHK: 486, Moscow Exchange: RUAL), one of the leading global aluminium producers, and PJSC RusHydro (MOEX, LSE: HYDR; OTCQX: RSHYY), one of Russia's largest generating companies, commissioned the first potline at the Boguchansky aluminium smelter (BoAZ),  part of the Boguchansky Energy and Metals Complex (BEMO).

Dmitry Kozak, Deputy Chairman of the Russian government and Governor of the Krasnoyarsk territory Alexander Uss along with Evgenii Nikitin, CEO of RUSAL and Nikolay Shulginov, Сhairman of the Management Board and General Director of RusHydro, took part in the ceremony held during the Krasnoyarsk Economic Forum.

The joint agreement on the BEMO project consisting of the Boguchansky aluminium smelter and Boguchanskaya HPP, was signed by RUSAL and RusHydro 13 years ago at the Krasnoyarsk Economic Forum. The BEMO project was completed at a record pace: in 2012 the first hydroelectric units went into operation and in 2015 the station reached the design capacity of 2, 997 MW, the design capacity of the first potline of BoAZ – 298 thousand tonnes of aluminium per year.

BEMO is a unique project in terms of its characteristics and scale. It is the largest energy and metals investment project in the world and is the first example of a large scale public-private partnership in the country. Its implementation made it possible to create a modern powerful energy base necessary for the development of industry in the lower Angara area. About 10 thousand jobs have been created at BEMO.

"The launch of the first production line of the Boguchansky aluminium smelter is a great example of the successful implementation of a large scale partnership project in Russia. Along with the Khakas aluminium smelter built by RUSAL and the Taishet plant which is now under construction, the launch of the new BoAZ capacities applying the most modern technologies will not only ensure the production of competitive products, but will also make a great contribution to the socio-economic development of both Siberia and the country," said RUSAL’s CEO Evgenii Nikitin.

"Boguchanskaya HPP - fifth-largest hydroelectric power station in Russia with a capacity of 2997 MW is one of the most modern and efficient power plants, not only in Russia but in the world. BEMO is a unique and significant project for modern Russia, which showcases the joint venture of a large hydropower station and a large consumer. Boguchanskaya hydropower station has already developed more than 70 billion kWh, which exceeds the annual energy consumption of the entire Krasnoyarsk territory", added Nikolai Shulginov, Сhairman of the Management Board and the General Director of RusHydro.

The investment in the first stage of the smelter with an annual capacity of 298 thousand tonnes amounts to USD 1.6 billion. The project is being financed by both RUSAL and RusHydro’s own funds and as part of a financing project by State Development Corporation VEB.

Note

The Boguchansky aluminium smelter is one of the largest and most modern metal production facilities in Russia. The smelter is located in the middle of Russia, in the Krasnoyarsk territory (Boguchansky district), and covers 2.3 square kilometres (231 hectares). The Boguchansky aluminum smelter first produced metal in 2015. 

The production equipment installed at the Boguchansky aluminium smelter meets the most up-to-date international environmental requirements and is certified by the ISO 14001 international environmental management standard. The smelter is designed to meet RUSAL’s health, safety and environment policy to promote an integrated approach to reducing emissions. This means that any environmental issues are identified and tackled at each stage of the aluminium production process. 

Boguchanskaya HPP, with a total capacity of 2, 997 MW, is located on the Angara river in the Krasnoyarsk territory, near the town of Kodinsk. It is the fourth step in the Angarsk cascade of HPPs and is the fifth-largest hydroelectric power station in Russia. The plant is operated by PJSC "Boguchanskaya HPP" (joint venture of PJSC "RusHydro" and RUSAL).

The station had the longest construction period in the history of the domestic hydropower industry with the initial construction starting in 1974. After the Soviet Union’s dissolution, the construction pace decreased significantly and in 1994, the construction stalled and only resumed in 2006.

From 2013 to 2014, nine hydropower units with 333 MW capacity were introduced – this was a record level of input into hydropower for the entire post-Soviet era. After filling the Boguchansky reservoir to the design level in 2015, the station reached its total capacity, becoming the fifth largest hydropower plant in Russia. The construction of the station was completed in December 2017. Production of Boguchanskaya HPP in 2018 amounted to 13, 610 million kWh (+2.4% compared to 2017).