OREANDA-NEWS. December 3, 2012. En+ Group, a leading Russian diversified mining, metals and energy group, and ITOCHU Corporation, Japan’s premier trading firm, today signed a memorandum of understanding (MOU) to develop a new power unit project at Nizhniy Novgorod, Russia. The MOU was inked by Artem Volynets, CEO of En+ Group, and Takao Shiomi , Director of ITOCHU Corporation, and was witnessed by competent authorities of the Governments of Russia and Japan respectively.

EuroSibEnergo, part of En+ Group, is planning construction of new 400MW power unit at Avtozavodskaya combined heat and power plant (CHP) in Nizhniy Novgorod with Japanese power generation equipment. The construction project, scheduled to commence in 2013, is expected to feed growing demand for electricity and heat in the region.

The project includes the supply of an advanced 327.7MW gas turbine of Mitsubishi Heavy Industries. ITOCHU and Toyo Engineering Corporation will negotiate an EPC contract with EuroSibEnergo as well.

ITOCHU Corporation will provide necessary coordination for the Project to obtain financing from Japan Bank for International Cooperation (JBIC).

“This partnership symbolizes the strengthened cooperation between Russia and Japan for developing and modernizing the power sector in Russia,” said Artem Volynets, CEO of En+ Group. “We believe that ITOCHU Corporation, which has rich experiences and industry know-how in applying Japan’s advanced technologies in various infrastructure businesses worldwide, would be an ideal partner to cooperate with to tap Russia’s energy potential,” Artem Volynets added.

“ITOCHU Corporation is delighted to partner with En+ Group in this important project and to help obtain the necessary financing for power plant development,” commented Takao Shiomi , Director of ITOCHU Corporation. “We hope that this partnership will further strengthen the strong ties that exist between Japan and Russia, and be a driving force for Japan-Russian cooperation to fuel economic growth for our countries.”