the power of energy growth

Attracting investors to the region of Far East is contingent on the development of power industry infrastructure. At present, this industry toils in the conditions of an undeveloped market, with deficient machinery and outmoded electrical grids. By 2025 “RusHydro” and “RAO ES Vostok” plan to put into operation about 4GWtt of new capacity from power stations, primarily to substitute the outmoded ones.

And this is just the start.

The project is created with support of “RusHydro” company.

Hydropower industry

To safeguard against floods

The abnormal flash floods that hit the Far East of Russia in 2013 showed that the Zeyskaya and Burejskaya hydro power stations in fact saved the region
Zeyskaya HPS dam
© RusHydro

The unexpected and atypical  flooding that hit regions of the Far East in 2013 became the most severe and large-scale inthe whole history of hydrological assessment: floods hit all rivers of the basin, including those  in the Chinese territory. At the same time, it demonstrated the benefits of the Zeyskaya and Burejskaya HPSs being built on the Amur River tributaries. The reservoirs of these rivers helped to contain the main part of severest floods, which significantly reduced casualties and protected the major power generation facilities of RAO ES of the East from devastation.

Russian President Vladimir Putin0tasked the Russian Government to develop measures that could help to protect the economy and population of the regions of the Far East of such floods. In 2014 “RusHydro” proposed a program of construction of the so called anti-flood HPSs on the Amur River tributaries that would allowregulation of the river even further, and thus fully protect regions of the Far East from any kinds of floods. This program was based on the scheme of anti-flood hydro nodes in the Amur River baisin that was ,developed  back in the 1980s. At that time, experts of the “Lengidroproekt” Institute suggested building a hydro-electric power station on the Shilka River (the River of Amur takes its source from Shilka and Argun rivers confluence in Zabajkalje region), a cascade of HPSs on the Selemdjha River (which is the biggest Zeya River tributary, inflowing into this river below the functioning Zeyskaya HPS), a station on Giljuj River (another tributary of Zeya River that today flows into the HPS reservoir), the Nizhne-Zeyskaya HPS (a counter-regulator to Zeyskaya HPS set 300 km below the station), the Nizhne-Nimanskaya station on the Niman River (flows into Burejskoye reservoir) and two Dalnerechenskaya HPSs on the Bolshaya Ussurka River (a tributary of Amur River in Priamurje region). In total, the reservoirs of these stations can accumulate almost 30 cubic meters of water, which theoretically allows for the lowering the level of the Amur River to 680 cm in case of catastrophic floods.

Finally, the flood protection program incorporated the projects of the Nizhne-Zeyskaya (400 MWtt), the Selemdjhinskaya (300 MWtt), Gilujskaya (462 MWtt) and the Niznhe-Nimznskaya (600 MWtt) hydro-electric power stations with major anti-flood water reservoirs.  The “RusHydro” priority projects are the Nizhne-Zejsky and Selemdjhinsky hydro-electric schemes, which would be able to supplement one another.  Nizhne-Zeyskaya HPS, being the counter-regulator of the Zeyskaya station (as well as the Nizhne-Burejskaya HPS - currently under construction  -on the Bureya River) will help to regulate the river flow so that any possible damage to as many as  seven settlements in the district of Amur will be eliminated. This will also have a stabilizing effect on the Zeya downstream and partially – on the middle course of the Amur River. The construction of Selemdjinsky water reservoir, given the joint flow with the cascade  of the Zeyskaya and Nizhne-Zeyskaya HPSs will create an ever more efficient anti-flood effect, which will be extended throughout the whole Zeya downstream, as well as on the middle course of the Amur River (up to the river mouth, created with the Sungari River).

For the “Power of Siberia” and China

Each station serves not only to prevent floods, but also to provide environmentally friendly power. However, the customer for such power supply is still unidentified. Thus, the sources of investment remain vague as well. Obviously, the state budget cannot support this costly enterprise, nor can “RusHydro”. So, “RusHydro” has prioritized the following scheme: the power which is generated by the new HPSs can be supplied to the domestic market for needs of the “Power of Siberia” gas transporting system, for instance. However, the main part of this power supply shall be exported - to China, most probably. China is interested in these anti-flood HPSs – the more regulated the Amur River on the Russian side, the easier it is for the Chinese territories to survive the flood period; it is also important that the population density on the Chinese part of the border region is higher. So, there remains an issue of the final price.

© RusHydro

In June 2014 “RusHydro” signed an agreement with Chinese corporation “China Three Gorges Corporation”, according to which the creation of a joint company to finance, construct and launch anti-flood hydro-power stations in the regions of Amur and Khabarovsk is confirmed. The costs of construction of each of these HPSs will be clarified after the end of the preparatory stage of these projects: today energy experts avoid mentioning any kind of data, even preliminary. Possibly, the finance models will have project financing principles at the basis. The Chinese partner is responsible for setting up the parameters for long-term power supply contracts, as it is the “China Three Gorges Corporation” that is entitled to conduct negotiations with the State power and grids company of China - which is stressed in the agreement.

A competitive screening of subcontractors to develop technical and economic justification for the projects of constructing of all anti-flood HPSs is scheduled to start soon. The results of this assessment shall contain, apart from regular project documentation, suggestions for finance models of projects, as well as sales market forecasts and conditions of contracting with banks which will be ready to finance the construction of these stations. The project documentation will be, first of all, presented to the Chinese partners for assessment, and secondly, it will serve as a basis for the creation of joint companies between “RusHydro” and  “China Three Gorges Corporation”, with both parties evaluating the economic feasibility of these projects and export perspectives. At present, “RusHydro” plans to set up the infrastructure of the future joint company together with its Chinese partner.

Nizhne-Burejskaya Exercise

The first step in this direction has already been taken: in May 2015 “RusHydro” and “China Three Gorges Corporation” have agreed to evaluate the opportunity of creating a joint company for finalizing construction and launching of Nizhne-Burejskaya HPS, the construction of which has been undergoing in the Amur district of the Bureya River since 2010. All hydro power capacities are scheduled to be launched in 2016. The planned production capacity of Nizhne-Burejskaya HPS accounts for 320 MWtt, annual average power production is estimated at 1.65 bln kWtt per hour. The main customers of the power supplied by the station shall be infrastructure facilities, such as gas pipeline “Power of Siberia”, or the “Vostochny” cosmodrome in the Amur district, the construction of which is scheduled to be finished by the end of 2015. Moreover, part of the power produced by the Nizhne-Burejskaya HPS, can be exported. Possibly, it is a project that, although still under construction may serve as a basis for exercising mechanism of interaction between “RusHydro” and the Chinese company.

The Nizhne-Zeyskaya HPS may become the next project to be implemented. It is this project that has been acknowledged as the most thoroughly assessed in terms of previously conducted pre-project investigation and economic evaluation.Thus, the project that envisages the construction of a second line of the eyskij hydro-cascade, was deemed the priority one to be passed on to the bank-run evaluation stage (out of four anti-flood projects).

© RusHydro, RAO ES of the EAST

Thermal power generation and grids

On coal and gas

The program of perspective development of “RAO ES of the East ” includes several construction projects that are to be launched up to 2025, with four thermal power stations projects among these
The construction of the second stage of Blagoveschenskaya TPS
© RAO ES of the East

Experts within RAO ES of the East believe that the Far East region will require up to 4GWTT of new power capacities by 2025. The main part of this capacity – about 2.5 GWtt – will replace that provided currently by the outdated and discontinued facilities. This is the price of grievous underinvestment in the energy industry over more than 25 years. 1.5 GWtt of new power capacities will be channeled to cover the perspective demand, that has already been calculated, with some sales agreements been already concluded. Meanwhile, the cumulative confirmed demand at the moment exceeds 350 MWtt.

The program of perspective development of the region includes several projects that are to be constructed before 2025. Among these are the four priority projects of thermal power industry, the construction of which was authorized in December 2012 by the order of the President , Vladimir Putin, with 50 bln rubles budget funds earmarked for “RusHydro” company to use them. These budget funds are currently channeled to finance the construction of first stages of facilities at the Yakutskaya and Sakhalinskaya SDPS-2, Sovgavanskaya TPS (Khabarovsk area) and the second stage of facilities at Blagoveschenskaya TPS (Amur region). The launch of these stations will provide 553 MWtt of electricity and 875 GKal/hour of thermal power. At the end of 2015 the second stage of Blagoveschenskaya TPS is scheduled to be launched, with other facilities to follow up to 2017. These are planned to replace dilapidated facilities of present TPSs and CDPSs that have been outdated long ago.

The program also includes the construction of the TPS Vostochnaya in Vladivostok, the launch of which would allow to provide about 20% of the port city’s demand for power, as well as several other projects, for example such as Artyomovslaya TPS-2, par and gas generator at Vladivostokskaya TPS-2, TPS “Zmeinka” and “Sinaya Sopka”, Bilibinskaya TPS in Chukotka, the second stage of Yakutskaya CDPS-2 and Khabarovskaya TPS-2. Apart from these, the far-eastern energy has plans for  serious investment in the transmission grid complex.

Into one circuit

Among other milestone projects one can highlight, for example, the heat power pipeline TM-35 in Khabarovsk. This pipeline would allow to connect all three stations of Khabarovsk into one technological circuit, which will enhance the existing opportunities for maneuvering  and will increase the reliability of energy supply to the capital of the Far East region.

Another ambitious project includes a construction of the energy bridge between Magadan district and Chukotka. The reason for this project is the decommissioning of the only Far Eastern nuclear power station – Bilibinskaya – and the launch of a drifting nuclear station in Pevek in Chukotka. In future, the Chaun-Bilibinsk energy scheme of Chukotka can be merged with the energy system of the Magadan district. The project envisages construction of two lines of electric power transmission of 220 and 110 KV, with 1100km in length and 300 km in length accordingly. Their estimated cost is about 93 bln rubles. Today RAO ES of the East is analyzing the financial part of the project. Vladimir Milotvorsky, CEO of “Magadanenergo” energy company, believes that this project is mutually beneficial for both territories, as it allows the merger of two large isolated energy systems for the first time. This means that there will be additional load for the effective capacities of the Ust-Srednekanskaya HPS on the Kolyma River, with power produced at this HPS being channeled for the needs of mining and processing enterprises in the North-Evensky district of Magadan area and in Chukotka.

Sergey Tolstoguzov, CEO of RAO ES of the East, stresses that “Given the fact that today total power capacities of the region account for 9GWtt, in the coming years we are to rebuild the energy system practically from scratch”. The total amount of necessary investment into development of the Far East energy industry is estimated at more than 700 bln rubles. 630 bln rubles of these funds are needed for the modernization and construction of new power generating facilities, development of heat and distribution within the RAO ES of the East system.

© RusHydro, RAO ES of the EAST

Renewable energy industry

Sun and wind instead of diesel and fuel oil

Despite the high costs of the technologies of renewable sources of power, the stations that use renewable energy usually pay off within 7-12 years because of the saving on fuel supplies
Solar power station in Batagaj settlement
© RusHydro

One can get to Batagai settlement, which is situated in Kobiajsky ulus of Yakutia, by the Lena River, either  by the winter road, set on the river ice, or by boat. There is a population of 250 people here, and there is one combined school and kindergarden, a first-aid station, as well as wooden houses. This settlement may be deemed a demonstrative case in assessing perspectives of developing renewable sources of energy in the Far East. According to Rosstat, there are more than 2000 autonomous power stations in the Far East region with a total power capacity of 990 Mwtt (with more than half of them being set in Yakutia), which annually produce about 1.2 bln kWtt/hours to supply small and dispersed settlements. These settlement will never be reached  by the centralized sources of power supply, so they will go on living on autonomous power generation – diesel or fuel oil, usually.

Annual norms of the so called “Northern supply” are estimated at 320 000 tons of equivalent fuel, with costs of supply exceeding 9 bln rubles. The gross amount of these costs are obvious: to compare, the annual costs of RAO ES of the East of preparing the company’s facilities for the winter heating season amount for 10-11 bln rubles.

© RusHydro, RAO ES of the EAST
© RusHydro, RAO ES of the EAST

Is it possible to save on the “golden” diesel costs? Experience gained in Soviet times, proves that it is possible with the help of renewable energy sources. In Kamchatka there are geothermal power stations within the “RusHydro” system (run by the company’s subsidiary “Geotherm” company) , such as the Pauzhetskaya, Mutnovskaya and Verkhne-Mutnovskaya GeoPS, with a total power capacity of 74 MWtt. To date, these unique stations provide for up to 30% of energy demand of the central Kamchatka energy scheme, thus allowing easing the dependence of the peninsula away from 0costly fuel oil, transported from other regions.  However, not all territories of the Far East region boast numerous volcanoes. Here, there is more supply of solar and wind energy. “We have also considered applying biotechnologies and mini-HPSs, but, after evaluating their economic efficiency, we have concluded that these shall not gain wide distribution in the Far East, thus proving to be unique, and not massive, projects. Sun and wind, on the other side, already have demonstrated a considerable potential in the region of the Far East”, - notes Alexey Kaplun, strategy and investment Deputy CEO of RAO ES of the East in his interview to “”. – We see the largest potential in Yakutia, as it presents wide opportunities of helio-energy industry. Primorje is famous for its solar stations and wind power generators, Kamchatka – for its wind power stations and mini-HPSs and geothermal stations. And, we count on Sakhalin and Chukotka in terms of providing wind power”.

Green energy industry perspectives

Even the first results of introducing “green energy” are impressive. For example, as soon as solar batteries were implemented at  the diesel station in Batagai settlement, they instantly allowed a reduction in the consumption of diesel fuel. Since then, eight solar power stations have been constructed in Yakutia in regions that vary considerably in climate conditions. Five wind power generators have been deployed in Kamchatka, Sakhalin district and Yamal. The program of renewable energy sources development envisages the launch of 178 wind and solar power station before 2020 with a total power capacity of about 146 MWtt. The program costs are estimated at 19,9 bln rubles. In June 2015, RAO ES of the East has finalized the first stage of construction of the solar power station in Batagai, the largest solar station situated above the Polar circle, with power capacity of 1 MWtt. Its estimated capacity is scheduled to quadruple in future. This facility will cost the company 158 mln rubles, but at the same time it would allow saving up to 300 tons of fuel per year.

At the same time, there is no alternative to diesel power production in severe climate conditions of the Far East. The problem is that the renewable power resources are very unstable – the level of insulation differs greatly  depending on the time of the year, as well as wind power.  Nevertheless, introducing renewable energy production in the most costly and isolated areas proves highly efficient. Despite certain costs, both solar and wind power stations return investments within 7-12 years, as estimated by RAO ES of the East, in comparison with diesel stations, exclusively because of saving on fuel transportation costs.

The renewable energy sources program development in the Far East has other benefits as well. First of all, these facilities can become growth multipliers in diverse sectors of economy – from production of machinery, which is imported by and large, to engineering and maintenance. It goes without saying that the introduction of “green energy industry” would allow lowering the level of pollution caused by the power stations that work with traditional types of fuel.


Electric power export

Power for foreigners

Power export in the Far East can be increased up to 6 bln kWtt/hour of total annual capacity, even given its current state
Burejskaya HPS view
© Vladimir Smirnov/TASS

Neither “RusHydro” nor “RAO ES of the East” deal with direct exports of power, as this sphere is the competence of another state-run holding – “InterRAO”, which sells the excesses of power that are not in demand on the domestic market, to China. According to the company’s data as of 2014, the total power exports from Russia have decreased by 19.9% with a bit more than 14 bln kWt/hour in total. Exports to China decreased by 3.4% to 3.37 bln kWt/hour, and to Mongolia – by 5.6% to 390 mln kWtt/hour. The state Holding explains these data as resulting from the prolonged period of major grids equipment repairs.

As a result of the first period  of 2014, the overall situation has changed drastically: exports from Russia amplified by 42.2%  up to 9.1 bln kWtt/hour (primarily because of exports to Ukraine, with sales increasing 70 times). Meantime, exports to China and Mongolia continued to decline: by 12.2%  in the former case and by 28% in the latter case. “RusHydro ”  explains these trends by a low water availability that was characteristic of the second period of the last year, which affected the water volumes in reservoirs of Zeyskaya and Burejskaya HPSs by the beginning of 2015. As a result, it was necessary to radically decrease the HPSs’ water discharges, which led to the decrease of power production. The additional load was transferred on other thermal power stations within the Unified energy systems of the East. Nonetheless these could not fully substitute for the lack of power production resulting from the low water capacity. Thus, a decision was made in the Unified energy systems’ managing company to decrease exports primarily to satisfy demand from domestic customers.. Even though, it is expected that by the end of 2015, even given a positive hydrologic situation, power production of two largest HPSs of the Far East will decrease by 8-11% as compared to 2014.

HPSs as well as TPSs

Before 2013, the whole volume of power production of “RusHydro” group (both thermal and hydro power) was sold on the domestic wholesale market by a state-established system of tariffs, applicable for the Unified Energy Systems of the East. The excesses were sold to InterRAO in accordance with bilateral agreements that limited the price as prescribed in the order of the government of the Russian Federation (not more than two tariffs of the whole power production of the Unified Systems of the East). October 1, 2013, saw the introduction of amendments to the federal regulation of energy markets, that enabled signing a package of bilateral agreements (these envisage exact volume share of total supply of hydro and thermal power that are unanimous for the whole package), that facilitated obtaining average pricing for the entire package - which is more attractive for the customer, and the “RusHydro” was thus capable to conclude bilateral agreements not only on hydro power supplies that have the lowest tariff deals in the Unified energy systems of the East, but for thermal power supplies that have the tariffs which are twice as high, or more. Since then the subsidiary of RAO ES of the East, which is the main producer of power on thermal power stations in the Unified Energy systems of the East started receiving additional revenue that is channeled to maintain the safety of energy supplies, renovation and modernization of the thermal power producing facilities, that has a high level of equipment deterioration.

According to “RusHydro”, in 2014 the volume of export supplies for the whole package of bilateral agreements accounted for 1.745 bln kWt/hour (the rest of supplies were bought by InterRAO on the domestic market from a sole supplier – joint stock company of DEC, which is a subsidiary of RAO ES of the East – with regular tariff rules applied). In the current year, “RusHydro” planned increasing of exports on the whole package of bilateral agreements up to 2.5 bln kWtt/hour if the level of water flows remains normal. However, the final volumes will prove lower than the estimated ones.

Exports to Japan

Notwithstanding all the information mentioned above, it is still possible to increase the power exports in the Far East region up to 6 bln kWt/hour in annual supplies, even given the current condition of grids infrastructure in the region. The top managers of “RusHydro” estimated the Russian power supply needs of China alone at 10GWt. For example, there is ample power export potential of anti-flood HPSs on the Amur River tributaries. “RusHydro” group sets high expectations upon large-scale projects that are oriented solely on power supply export. Here, the focus is on the energy supply bridge between Sakhalin and Japan.

After the accident at Fukushima nuclear power station and the ban on nuclear power production within the energy industry of Japan that followed, the power supply tariffs in Japan increased significantly. In the nearest future, these are not set to change drastically, even if the “shut down” nuclear power stations resume operations.. In this case, importing cheap energy from Sakhalin presents a rational alternative. However, the legislation of Japan does not envisage imports, although some changes may be expected. The export supplies to Japan  are planned to be supplied with the aid of the energy bridge from Sakhalin-based stations, i.e. the Sakhalin SDPS-2 (currently under construction), as well as from the Yuzhno-Sakhalinskaya TPS-1. “Exports to Japan can be supplied via an  underwater cable from Sakhalin. The island has a high coefficient of reserving. This capacity could be additionally loaded with export-oriented supplies”, - notes Sergey Tolstoguzov, CEO of RAO ES of the East.

If there is  successful implementation of the project, the energy sector of economy of the Far East will  receive at least 1 bln USD, and the infrastructure created to support it will help to maintain supply volumes at the expected level both under basic and peak regimes. Currently, “RAO ES of the East” is developing a preliminary technical and economic endorsement for the energy bridge project based on its own funds. This work involves two separate phases:: analysis of the project of construction and reconstruction of the objects of power generation and electricity grids, that are necessary for the power supply exports to Japan; and the development of technologies for  laying an underwater cable from Sakhalin, along with construction of a coastal transforming substation and  grid infrastructure facilities in Japan. A unified financial model of the project that takes into account the data on the Japanese part of export line is also under consideration.

To unite the island with the continent

“RusHydro” has an added interest in this project, since its implementation enables further transformation of a closed energy system in Sakhalin. First of all, it will allow constructing two more stages on the new Sakhalin SDPS-2 with total capacity of 240 MWtt (currently the construction of the first stage of power facilities accounting for 120 MWtt is underway with the employment of the state funds that were earlier earmarked for these purposes) and renovating the grid infrastructure of the island. It is quite likely that in this case it will be possible to save and reconstruct the outdated Sakhalin SDPS – under present configuration it is ineffective, but in case of growing export to Japan the facilities of the station may become of high demand once again.

However, the implementation of these projects would only allow increasing exports to 400-500 Mwtt, which is certainly quite modest in terms of planned supplies. “Still, it is quite sufficient for the first stage, - says Sergey Tolstoguzov, CEO of RAO ES of the East – Afterwards, judging on the results of such work, we may see the prospect of constructing a special export-oriented power station with power capacity of about 600-700 MWtt on Sakhalin, and even further – connecting the continental energy system with the island system, which will allow increasing exports as a result of the increase of power supplies from the Far-Eastern HPSs”. The amount of the proposed export could amount to2-4 GWtt.


Energy consuming industries

A DIY-Customer

New power industry sites are constructed to meet the needs of emerging new customers. Thus, the power produced at Nizhne-Burejskaya HPS could service the needs of the “Vostochny” cosmodrome
“Vostochy” cosmodrome launch site complex
© Igor Ageenko/TASS

Lack of major customers presents one of the key problems of the Far East power industry. While projects that deal with the renovation of thermal power stations are primarily aimed at substituting the outdated power capacities, the launch of new construction sites, especially in the power industry, without sales guarantees, seems weird, at least. 

Under given conditions, the power industry experts closely monitor all steps taken by the government and private investors in this sphere, with certain steps taken in advance as well. The Nizhhne-Burejskaya HPS, currently under construction, has already received a potential customer pool: these include the “Vostochny” cosmodrome, the facilities of the gas transporting system “Power of Siberia” and other projects within the infrastructure that are scheduled to be built within the Unified Energy Systems of the East. The new HPS in Sovetskaya Gavan that is also currently under construction as ordered by the President of Russia, is aimed not only to substitute the outdated capacities of Mayskaya SDPS, but also to service the prospective demands of the special Marine Economic Zone  in Sovetskaya Gavan. At the moment the future  companies of this area have already requested for 50 MWtt of perspective power capacities – not to mention the growing demands of the population of Vaninsky and Sovgavansky subdistricts of the district of Khabarovsk, as well as the prospects of electrification of the Baikal Amur Railway.

Territories of advanced energy consumption

The demand increase in the Far East region on the whole could exceed 45% by 2025. The demand would peak in the southern regions of the Far East, as well as in Yakutia, Kolyma and Chukotka. To compare: in 2010-2014 the average consumption growth did not exceed 2% and was primarily determined by the construction of households; in future, it is the major industrial objects and customers from the 'advanced development territories' – the ADTs. Currently, these ADTs are only being created: The Ministry of the Far East development plans to accumulate various projects suggested by major investors with the assistance of diverse means of state support in these points of development. Three ADTs have already been endorsed by several orders of the government of the Russian Federation, and another six have gained approval from the special sub-commission of the government. The demands of the “Nadezhdinsky”industry park  in Primorje region can reach 37.6 MWtt by 2018. The total confirmed consumption of the approved ADTs currently exceeds 350 MWtt.

Moreover, “Rosneft” plans to construct a new complex for the Eastern petrochemical company (by 2022 this customer alone will need  up to 200 MWtt of power capacity). The demands of “Gazprom” for their factory in Vladivostok could account for up to 110 MWtt by 2018 (these will be required to be supplied by the United energy systems of the East). There are prospects for developing large-scale industry in the Amur region as well. For example, the gas processing cluster in Belogorsk will require up to 600 MWtt of power capacities to service the demands of the main gas pipeline “Power of Siberia” facilities that are currently under construction. There will be enough work for both power-producing and power-distributing sectors.

Hydrogen power project in Magadan

The demand of power in isolated energy systems of the Far East will be met by local power generation facilities. Here, it is worth mentioning the hydrogen liquefaction production complex project to be launched in the district of Magadan. According to the agreement between “RusHydro” and “RAO ES of the EastT”, signed in June 2013, these two companies will act as generators of power that is necessary for the complete functioning of the entire complex, and the Japanese company Kawasaki shall act as production, storage and transportation technology provider. The preliminary technical and economic backing of the project has been developed in 2014, and today it is in the final stages of endorsement.

The project may be implemented in two stages.  A pilot complex with power capacity of 11.3 tons daily is planned to be launched in 2019, and with full capacity ahead it will reach the level of 200 tons of daily production. 2026 is pinpointed as the full production launch date.

Liquid hydrogen is an ecologically friendly fuel with a very wide scope of application, with vast volumes of power and fresh water necessary for its production. The logic is simple: in Japan there is a lack of energy resources with a growing importance of “green” technologies (i.e., by 2025 the hydrogen demand in Japan to suffice car production is expected to hit 204 000 tons per year). With full load, the complex would require up to 510 MWtt of electric power capacity from the Magadan district energy system, which would allow the introduction of maximum load to local power-generating objects – Kolymskaya and Ust-Srednekanskaya HPS, which is currently under construction.

Some time ago the construction of the Ust-Srednekanskaya HPS  - the second  one in the cascade on the Kolyma River  was linked with development possibilities in the gold mining areas. It was planned that the main output of power produced at this station would service the demands of the new mines and mining and processing plants. The first stage of facilities of this HPS was launched at the end of 2013; obviously, it would be costly to stop the ongoing construction right now. At the same time, the construction of gold mining plants became a case with anuncertain future. Thus, “RusHydro” and “RAO ES of the East” had to evaluate the prospects of finding another major customer for this HPSs cascade. The approach is still not new: for example, “Irkutskenergo” company has already applied it in Irkutsk area by announcing the start of a new project in the metal industry, household construction and even in the IT- sphere (a data processing center was launched in Irkutsk).

However, the periods of the implementation of the project depend on the growth of demand for hydrogen in Japan and worldwide. In fact, currently there is no final customer of liquefied hydrogen in world (at least in industrial terms). The hydrogen storage and transportation technologies are not yet fully researched. This technological issue has been resolved successfully with the case of liquefied gas transportation – a -160°C temperature is essential here. However, transportation of liquefied hydrogen requires a temperature of -240°C.  Despite all these issues, “RAO ES of the East” rests assured that Kawasaki – a key technological partner – will resolve all these. By the end of 2015, these companies plan to agree upon the start of assessing technical and economic documentation for the bank-run endorsement of the project. Drawing upon this assessment’s results, a decision on the applicability of the project will be made. 

The project is created with support of “RusHydro” company.