Gazprom, Gasunie, Eurotechnika and BioGazEnergostroy Corporation sign a Memorandum of Understanding on “green” gas

Moscow/Groningen | press release

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.

From left to right Ludmila Orlova, Paul van Gelder, Alexander Medvedev and Sergei Chenin. From left to right Ludmila Orlova, Paul van Gelder, Alexander Medvedev and Sergei Chenin.

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Background information
“Green” gas is methane of biological origin produced from biomass and treated to have the same gas quality as natural gas.

Gasunie is a European gas infrastructure company. Gasunie’s network ranks among the largest high pressure gas pipeline grids in Europe, consisting of over 15,000 kilometres of pipeline in the Netherlands and northern Germany, dozens of installations and approximately 1,300 gas receiving stations. The annual gas throughput totals approximately 125 billion cubic metres. Gasunie offers transport services via its subsidiaries Gas Transport Services B.V. (GTS) in the Netherlands and Gasunie Deutschland in Germany. The company also offers other services in the gas infrastructure field, including gas storage, LNG and certification of green gas through its subsidiary, Vertogas.

On 18 June, 2010 OAO Gazprom and N.V. Nederlandse Gasunie signed the Memorandum of Understanding on strategic cooperation, which provides for the two companies’ extended interaction in the field of gas transportation infrastructure, underground gas storage, Nord Stream gas pipeline construction, scientific and technical cooperation, LNG, environmental protection, energy efficiency, information and cultural exchange, personnel management etc. Gasunie is interested in using its infrastructure and expertise for future development and integration of renewable energy sources, in particular, “green” gas.

Eurotechnika is a leading Russian agricultural machine-building company specialising in production of technological systems for growing crops using modern resource-saving technologies. The company is interested in creating a model of eco-friendly production of energy crops in Russia and securing supplies of raw materials for production of "green" gas.

BioGazEnergoStroy Corporation performs construction and installation of systems for processing organic waste into fertilizer and biogas.

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