OREANDA-NEWS. September 14, 2012.  State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’, the Government of the Moscow region and LLC Group of Companies Russian Biougol in the presence of Moscow region Governor Sergei Shoigu entered into an Agreement on General Principles of Cooperation.

On behalf of Vnesheconombank the Agreement was signed by Vnesheconombank Chairman Vladimir Dmitriev, on behalf of the Moscow region Government  - by Vice-Governor – Chairman of the Government Andrei Sharov and on behalf of Group of Companies Russian Biougol - by Midnay United Ltd Director Alexandr Katunin.


This Agreement aims to conserve forest resources of the Moscow region, improve ecological situation on the region’s territory, develop an economically effective model of using the region’s forests applying innovative technologies in utilizing forest waste.

The parties intend to cooperate in improving the sanitary condition of the region’s forests, increasing fire safety on the lands of forest reserves, utilizing waste and forest low quality materials on the basis of advanced innovative technologies.

Under the Agreement Vnesheconombank is ready to explore an opportunity for funding investment projects on the construction of plants to process low-quality timber and produce second generation fuel granules (pellets).

At present, they are negotiating an issue of constructing nine plants worth more than 6 billion rubles in the Moscow region with a total capacity of 630 thousand tons of fuel granules per year. An annual volume of utilized waste is to amount to about 2 million cubic meters.

This Agreement’s implementation will make it possible not only to create new high-technology production facilities but also new jobs.

LLC Group of Companies Russian Biougol applies innovative technologies in processing logging and timber processing waste, immerchantable, low quality and non-liquid timber. A pilot production facility is located in Norway, practical tests of the technology were conducted at electric power plants of Vattenfall Concern in Germany and Great Britain. The company worked out a program to build 52 plants on the Russian territory with a total capacity up to 10 tons of fuel granules per year. Products are to be supplied to European electric power plants and to the domestic market. Production technology is ecologically friendly and it excludes completely negative impacts on the environment.