Gazprom, Gasunie, Eurotechnika and BioGazEnergostroy Sign MoU (Russia)

The Vice-Chairman of Gazprom’s Management Committee, Alexander Medvedev, Paul van Gelder, CEO of N.V. Nederlandse Gasunie, Ludmila Orlova, General Director of Eurotechnika, and Sergei Chernin, Chairman of the Board of Directors of BioGazEnergostroy Corporation signed a Memorandum of understanding of the joint project of development of “green” gas in Russia in Moscow during the visit of the Dutch economic mission to the Russian Federation headed by H.E. Mr. Mark Rutte, Prime Minister of the Netherlands.

The document reflects the companies’ intention to cooperate in the field of development of “green” gas from in Russia and making the benefits of this gas available to the European Union.

According to the Memorandum, the parties will consider the possibility of a joint venture in Russia, prepare a business plan, and solve other organisational and legal matters to implement the pilot project for the development, certification and export of “green” gas to the Netherlands and subsequently throughout the European Union.

‘Production and use of energy derived from renewable sources are becoming a more visible segment of the energy industry. “Green” gas occupies an important place here. Russia has a considerable potential for “green” gas production: in the long run it may amount to 35 billion cubic metres a year. I am confident that our joint work on development of this area will contribute significantly to the preservation of the environment and open new horizons for the Russian-EU energy cooperation,’ said Alexander Medvedev.

‘”Green” gas is emerging in a number of countries as a real sustainable additional energy source. It is an efficient way of making use of renewable biomass, utilising the well-developed natural gas infrastructure that is already in place, and the large potential in Russia for biogas production. In this way we are increasing the proportion of sustainable energy – in an affordable manner. This will also strengthen the pivotal role of natural gas in the sustainable energy mix of the future,’ said Paul van Gelder.

‘Bioenergy is a new sector of the national economy of our country. The development of the biogas industry is a solution not only to the problem of depletion of non-renewable energy resources, but also to the problems of improving the economic efficiency of agricultural production through the introduction of fallow land into agricultural turnover for cultivation of energy crops on advanced technology-saving farming. Thereby a steady intensification of agriculture will be ensured, as well as fertility of the soil of Russia maintained and restored,’ said Ludmila Orlova.

‘Working in collaboration with Gazprom and Gasunie is a great honour for BioGazEnergoStroy Corporation. The signing of this Memorandum is a landmark in the history of bioenergy development in Russia. The use of advanced European technologies will allow the Russian biogas take its rightful place in the gas industry,’ said Sergei Chernin.

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Source: Gasunie, October 21, 2011