Russia, the world’s second-largest oil producer and exporter, will start building its first major ethanol plant in 2007, according to a regional official speaking at Russia’s first Fuel Bioethanol conference in Moscow.
The US$200-250 million plant will produce 300,000 tonnes of fuel ethanol a year (about 380 million liters, or 100 million gallons US) for export to the European Union. The plant will be placed in the Volgograd region, one of Russia’s biggest grain-growing areas.
The plant will consumer more than 900,000 tonnes a year of feed wheat, according to PricewaterhouseCoopers, which acts as financial consultant to the project. About 40% of the investment required for the plant would be supplied by a consortium of at least three local companies. The rest will be borrowed.
The conference was organized by the Russian Biofuel Association and Genencor International, a wholly-owned subsidiary of Danisco.