RUSNANO and Fortum Create a Wind Energy Development Fund

27 April 2017

The Boards of Directors of RUSNANO and Finnish company Fortum approved the establishment of an investment wind energy development fund, with a view to invest in the construction of wind parks and launch projects on the wind turbine production localization as well as venture projects in renewable energy.

The parties are considering the possibility to construct and put into operation wind parks with a total capacity of several hundred Megawatts within 5 years, which will allow taking a significant share of the Russian wind energy market.

Within the partnership, RUSNANO and Fortum on a parity basis intend to invest a total of 30 billion RUR in these projects. The financing of projects will also be carried out through obtaining Russian project financing (without recourse to borrowers). The interest in participating in the project has been voiced by a number of largest banks.

A foreign supplier of wind turbines from among the world's largest producers, with whom RUSNANO and Fortum are at the final stage of negotiations, will be selected to implement the project. One of the main conditions of the selection of the supplier is the equipment production localization program on the Russian territory. The localization level will increase annually and should reach 65% by 2019.

In addition to the participation in the Fund RUSNANO intends to independently invest in localization projects up to 1 billion RUR. Such projects are planned to be implemented together with the selected supplier and its OEM partners as well as Russian technological partners. The investments will be aimed at creating the production of nodes and components of wind turbines: blades, towers, generators and other components. The listed products will be, among other things, manufactured using nanotechnologies. The Project implementation will give effect in related industries (metallurgy, materials science, power engineering, construction, engineering, service), allow including Russian enterprises in the global supplier chain and realizing their export potential.

In 2017, Fortum plans to complete the construction of a wind park with a capacity of 35 MW, which is supposed to be included in the partnership. The selection of sites for other wind parks with potential investments from the fund, is being made in Rostov, Ulyanovsk, Murmansk, Krasnodar and Stavropol regions, the Republic of Tatarstan and other regions. Promising development areas are determined based on wind parameters, logistics, accessibility of the power grid infrastructure and readiness of the local authorities to support the implementation of projects.

The global wind energy market continues to develop in a sustained way: more than a half of global wind power generation was launched for the last 5 years. Wind was a key source of new generation in Europe and the USA, and the second in importance in China. The total capacity of all wind parks put into operation in the world as of now amounts to about 500 GW.

Thanks to its geographical and climatic features, the Russian Federation has the largest wind power potential in the world. The creation of the Fund and the launch of localization projects will allow forming two new high-tech industries in Russia: production of equipment for wind generation and construction and operation of wind parks.

It is planned that within 3-5 years wind parks constructed and put into operation may interest financial strategic partners as well as energy companies investing in renewable generation.

Additional information

Reference

RUSNANO Joint-Stock Company was founded in March 2011 through reorganization of state corporation Russian Corporation of Nanotechnologies. JSC RUSNANO contributes to implementation of the state policy on the development of the nanotechnology industry by investing directly and through investment funds of nanotechnology in financially effective high-technology projects providing the development of new production facilities in the Russian Federation. Its primary investment focus is in electronics, optoelectronics and telecommunications, healthcare and biotechnology, metallurgy and metalwork, energy, mechanical engineering and instrument making, construction and industrial materials, chemicals and petrochemicals. 100 percent of shares of JSC RUSNANO are owned by the state. Thanks to investments RUSNANO currently opened 84 factories and R&D centers in 30 regions of Russia.

Management of assets of RUSNANO JSC is carried out by Limited Liability Company established in December 2013, RUSNANO Management Company. Anatoly Chubais is the Chairman of its Executive Board.

Work to establish nanotechnology infrastructure and carry out educational programs is fulfilled by RUSNANO’s Fund for Infrastructure and Educational Programs, which was also established during the reorganization of the Russian Corporation of Nanotechnologies.