Azerbaijan’s energy giant SOCAR and German Uniper Energy Company created a joint venture for manufacturing a steam turbine generator, reported Azernews on November 16, 2016.
SOCAR-UNIPER passed the state registration via a single window system of the Azerbaijani Tax Ministry on July 20, 2016.
The relevant agreement on the establishment of the enterprise was signed by SOCAR Head Rovnag Abdullayev and UNIPER President Klaus Schafer in May 2016.
A 51% share of the JV belongs to SOCAR while Uniper holds the rest.
The cost of the project on the creation of SOCAR-UNIPER is estimated at €26 milion.
Some €20 million for the project will be drawn from a Bavarian bank with a period of 15 years at an annual rate of one percent.
The initial capital of the joint venture will amount to €4 million, and the funds will be invested by Uniper. SOCAR will provide equipment worth €2 million.
Moreover, the sides earlier signed a preliminary project agreement on the construction of a steam turbine generator unit at the Ethylene-Polyethylene plant.
The project is aimed at increasing economic efficiency of the steam-generating complex at the Ethylene-Polyethylene plant, and ensuring production of additional volumes of electricity.
The unit is expected to launch production of steam in 2018.
The commissioning of the unit will reduce the prime cost of steam production to 0.019 manats per cubic meter, which is considered to be a very low figure for Azerbaijan.