Landesbank Berlin ready to provide 750 mln euro on biogas power projects in FSU
MOSCOW. Aug 26 (Interfax) - Landesbank Berlin AG has concluded an agreement with Biogazenergostroy to provide up to 750 million euro in financing to build biogas power stations in Russia, Belarus, Ukraine, the Baltic States and elsewhere in the FSU.
The financing will come in the form of 18-year loans with a two-year interest discount period, Biogazenergostroy's parent company, Gazenergostroy, said in a press release.
The bank has appointed Biogazenergostroy the general technology partner for construction of the biogas power stations. The agreement covers direct financing of the companies participating in the bio-station construction projects and indirect financing via partner banks that provide loans to the participating companies.
Biogazenergostroy jointly with its investment partners will provide up to 50% of the financing, so long as an agreement is concluded with the other party to the deal on purchase of raw materials, electricity, heat and the fermentation waste.
Biogazenergostroy, a company in the Gazenergostroy group, is the only certified biogas station producer in Russia.
Gazenergostroy provides turnkey construction of generating capacity, including small (1-30 megawatts), medium (30-150 MW) and large plants (150-1000 MW).
Biogazenergostroy is currently looking to acquire stakes in major European engineering companies engaged in construction of biogas power plants, board chairman Sergei Chernin is quoted in the press release as saying.
Biogazenergostroy designed and built Russia's first biogas power station, in Kaluga region. The plant has two power units operating on gas supplied by farms. The company is in the design or construction stage for 20 biogas power stations in Russia.