RFPI, JBIC and Prospect Co to invest in Russian bioenergy industry
The Russian Direct Investment Fund (RFPI – Sovereign Fund of the Russian Federation) and JBICIG Partners (JBICIG), a subsidiary of Japan Bank for International Cooperation (JBIC)) as part of the Russian-Japanese Investment Fund and JBIC), together with the Far Eastern RFP Group and the Japanese investment fund Prospect Co. Ltd have recently announced an agreement on joint investments in the production of biomass fuels in Russia.
According to a statement, the agreement provides for the development of cooperation in the field of processing waste from the Russian forest industry in the energy resource in the form of biomass pellets. The project involves the construction of plants for the production of biomass pellets with an annual capacity of 135 000 tonnes per year.
The beginning of the construction of the first facility, RFP Group’s plant in Amursk. is planned for the summer of 2018, with production start in early 2019. The parties expect a further increase in the production and construction of additional plants with a capacity of about 500 000 per annum. A significant part of the production will be exported to Japan.
Russia has great potential for the development of the bioenergy industry. We have the largest forest resource in the world. Every year, a large amount of timber is harvested, and after its processing wood waste is formed, which can later be converted into solid biofuel. The production of fuel pellets from wood will promote the development of alternative energy and will make it possible to realize the export potential of the Russian Far East, said Kirill Dmitriev, Director General of the Russian Direct Investment Fund (RFPI).
The RFPI is a sovereign investment fund of the Russian Federation with a reserved capital of US$10 billion under management. The fund was established in 2011 on the initiative of the President and the Chairman of the Government of the Russian Federation.
In all transactions, RFPI acts as a co-investor together with the largest international investors, playing the role of a catalyst in attracting direct investment in Russia. RFPI also attracted more than US$40 billion of foreign capital into the Russian economy, building a number of long-term strategic partnerships.
Prospect is pleased to partner and invest together with the RFP Group, RIaIF and other stakeholders to increase the production of the bioenergy industry in Russia and to become a major supplier to meet Japan’s energy needs. These export supplies will further strengthen the relationship between Russia and Japan, said Curtis Freese, CEO of Prospect Co. Ltd.
Prospect Co., Ltd. is a Japan-headed investment and development company currently developing renewable energy projects worth US$150 million.