Kiev, 24 October – Smart Energy Company developing the energy business line of Smart Holding Group has opened a plant for manufacture of fuel pellets from raw agricultural commodity, Vin-Pellet, in Turbov settlement (Lipovetskiy district of Vinnitsa region).

The first construction phase of the enterprise to the capacity of 75 thou. tonnes of pellets per annum has been put into operation. The designed output of the plant that is intended to be attained in 2013 is 150 thou. tonnes per annum. The plant will use cereal crops’ straw as a raw stuff for pellet manufacture. The straw will be prepared and supplied under the respective agreements with agricultural producers of the nearest districts in Vinnitsa region.

The construction of the plant will generate up to 150 new jobs. Internal railway branch will be laid to the plant for transportation of finished products to large consumers. In addition to the plant’s construction and rigging, specialized equipment for preparation of raw materials was also purchased.

Vin-Pellet plant is a pilot project of Smart Energy in the field of renewable energy sources. Going forward, the Company intends to continue building enterprises of the kind.

‘Vinnitsa region is among the leaders in the energy efficiency rating. That explains why we have built the first plant in this particular region. The total investment into the plant will amount to EUR 26 million. In future, Smart Holding plans to increase the number of enterprises manufacturing pellets from straw up to ten plants in different regions of Ukraine to the total production capacity of 1.5 million tonnes of pellets per annum. Such projects enhance energy independence of the country and its competitive advantages on the external markets. They make a significant contribution to the growth of domestic production and improvement of the trade balance,’ emphasized Alexey Pertin, the CEO of Smart Holding Company.

‘Smart Energy launches a large-scale energy project that presupposes the use of the country’s potential in the sector of alternative energy sources. Ukraine is capable of converting up to 30 million tonnes of agricultural waste and straw from various crops into bio-fuel annually. The calorific value of such bio-fuel is comparable to 15 billion m3 of gas. We plan to sell pellets on the internal market and export them to the European countries,’ pointed out Alexey Tymofeyev, the CEO of Smart Energy.

Reference

Smart Energy is a management company within the structure of Smart Holding Group responsible for project development in the field of hydrocarbon production and alternative energy sources.

Smart Holding is one of the largest investment groups in Ukraine with focus on key industries of the economy, including metals and mining, oil and gas, banking sector, shipbuilding, real estate and agriculture.

Smart Holding’s strategy is aimed at efficient management of a diversified portfolio of the Group’s assets by increasing its value in the long run and by search for new business development directions. Smart Holding’s investment activities are focused on the investments both in Ukraine and in the countries of CIS and Eastern Europe. Smart Holding participates in the projects as a strategic and portfolio investor.

For more information, please visit: www.smart-holding.com