Russia’s Yakutia and Power China To Cooperate In Thermal Power Plants For Energy Exports To China
The Yakutia Government in the Russian Far East, and China’s Power China have signed a MoU on cooperation in the construction of a new gas power plant with a capacity of 8 GW near Yakutsk and an extra-high voltage DC power line to export electricity to China, according to Dmitry Volvach, the Deputy Minister of Economic Development of Russia.
He was speaking during the 3rd Russian-Chinese Forum on Interregional Cooperation. A feasibility study is currently being developed to explore the execution of the project.
Yakutia is in the Far Northeast of Russia and is also sometimes referred to as the Sakha Republic. It is Russia’s largest Republic, giving it a semi-autonomous status, and borders the Arctic Ocean. It has a total population of 1 million.
The Yakutia project was initially discussed in January 2023. Then, Power of Yakutia, registered in October 2022, chose a subdivision of the Chinese state-owned company Sinohydro Corporation as a contractor for the implementation of the project.
The Power of Yakutia plans for 2024-2028, are to build an 8 GW gas power plant in Yakutia at an estimated cost of about ₽494.5 billion (US$5.5 billion) and an 800 kV ultra-high voltage transmission line at a cost of ₽374.8 billion (US$4.2 billion) to export electricity to China. The site for the construction of the station is located in the city of Lensk (about 840 km from the capital city of Yakutsk). The power line will stretch from the station in Lensk to Blagoveshchensk, which is located near the northern part of Heilongjiang province (China). The length of the line will be 1,800km.
The Yakutia Ministry of Housing and Public Utilities and Energy has stated that “This is a private project. Export of electricity to China.”
According to the Russian Unified State Register of Legal Entities, Power of Yakutia is owned in equal shares by Alexei Kravchenko, a businessman from St. Petersburg, and Li Duan, a Chinese citizen. The authorised capital of the company is the standard ₽10,000 (US$110); however this could change as it is normal for companies to be established with minimum capital and recapitalised at a later stage when required. It is presumed that Power of Yakutia owns title to Yakutia’s thermal power reserves.
However, Power Construction Corporation of China Limited (Power China) is one of the largest design and construction companies in China. The company occupies 65% of the hydropower construction market in China and more than 50% of the global market for the construction of large and medium-sized reservoirs and hydroelectric power plants. It also manufactures many other components and tools for building objects that use renewable energy sources.
Whether this project comes to fruition remains to be seen, much depends on the value of the Yakutia assets and the ability to gain funding. However, Power China is a significant partner, and the project is green energy based, fitting in with China’s State energy policies.
Source: Finmarket with additional commentary by Chris Devonshire-Ellis
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