Integrated Energy Systems (IES), part of Viktor Vekselberg's Renova Group, plans to sell the Kachkanarsk CHP plant in Sverdlovsk, Russia, to Evraz KGOK by the end of the year.
The sale of the CHP has been under consideration for a long time, according to Russian media.
Evraz KGOK, which is one of Russia’s top ore mining enterprises, is the sole consumer of Kachkanarsk CHP's electricity.
IES has denied the deal has any connection to the planned merger of IES and Gazprom Energoholding, which might yet face a probe from the Federal Antimonopoly Service (FAS).
Kachkanarsk's installed capacity is 50 MW, with the station located at Evraz KGOK's production complex. Evraz KGOK says it plans to look into refurbishing the CHP in order to boost its production capacity.
In a statement, IES's deputy general director, Roman Nizhankovsky, said:"The sale of the Kachkanarsk CHP to Evraz KGOK is a logical step since the station was initially built for the plant's needs.
Furthermore, the station was loss-bearing for IES during the summer. After it is transfered to Evraz KGOK's balance sheet, output might be balanced for the winter and summer."
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