Gas power generation
0.007 USD per kWh
RU EN
Natural Gas Energy

0.007 USD
per kWh

Investment Memorandum

Construction of a 100 MW
gas power plant in Eastern Siberia:

Profitable energy source for data-center applications, with the ability to sell power to the mains electricity grid

Ability to hedge the power cost at a low level for 25 years

Cold climate, average early temperature of −3°C. Reduced energy usage to cool down computing equipment

Broadband Internet access from local telecom providers, 200 Mbit/s bandwidth

Year-round logistical connectivity to Irkutsk by car or truck

Building Location

The suggested building location of the power plant is in Ust-Kut rayon (county) of Irkutsk oblast (province) of Russia, some 1000 kilometers away from the nearest large city, Irkutsk.
The natural gas (including APG – associated petroleum gas) will be supplied by a local company, partially owned by international investors (USA, Japan), one of the biggest independent producers of hydrocarbon fuels in Russia. The company's confirmed gas reserves are estimated at 200 bln. cubic meters.

Project Objectives

Creating the cheapest source of energy for data-centers

Creating independent power generation capacity

Selling power to various customers

Reliability and safety of the power source

Caring for the environment

Implementation of the Project

I.

Construction of a local gas power generation facility intended for gas-turbine engines working in power-generation mode using natural gas or associated petroleum gas (APG) as fuel.

II.

The main gas power generation complex will be a gas turbine power plant with the total output capacity of 100 MW, consisting of 4 EGES-25 (ЭГЭС-25) gas-turbine power generation installations.

Project Timeline

Idea Development
Project Rationale
Preparation for Construction
Construction and Launch
  • Development of a simple preliminary techno­logical design of the project
  • Rough estimate of capital expend­itures and current expenses
  • Fuel supply system development
  • Project execution planning
  • Computa­tional modelling
  • Selecting the optimal technical solution
  • Preliminary technical and economic assessment
  • Project go decision

 

  • Development of the construction documents
  • Equipment suppliers contest
  • Making deals for gas supply
  • Getting the building permit from the local government
  • All required documents, deals, and permits for construction
  • Construction of the power plant
  • Fuel supply and other infrastructure construction
  • Getting the launch permit from the local government
  • Independent energy source

Stage Complete

Stage Complete

6 months

12 months

Equipment Layout

Gas Pipeline
Reduction Unit
Fuel Gas
Transport System
Fuel Gas
Preparation Unit
Diesel Power Generator AKSA APD-1425M,
P = 1 MW as an Auxilary Power Unit
Diesel Fuel Storage Tank
V = 10 m3
GTES-100MW (ГТЭС-100МВт) Power Plant
based on four EGES-25 (ЭГЭС-25) units
Control Unit
in a modular building
Power for the
plant operation
Switchgear Unit ZRU-6 (ЗРУ-6) 10 kV
in a modular building
0.4 kV Power Output Switchgear Units
in modular buildings

Project Parameters (without VAT)

Parameter Value
Please note: the values in this table are originally in Russian rubles (RUB). RUB/USD rate used for conversion: 73.6376
Adjustable Parameters:
Electricity sale price, USD / kWh
Gas Price, USD per m3
Capital Expenditures Adjustment Rate, %
Main Calculated Indicators:
Cost price of electricity, without capital expenditures, USD / kWh {{x.bare_cost|rate3}}
ROI (Return on Investment), % yearly {{roi|rate3}}%
Investor's ROI (Return on Investment), % yearly {{inv_roi|rate3}}%
Payback Period, years {{(pp_years - x.investment_phase)|rate1}}
Payback Period, years {{(inv_pp_years - x.investment_phase)|rate1}}
Fixed Parameters:
Installed power capacity available to customers, MW {{x.power}}
Capital Expenditures, USD {{x.capex|rate}}
Running cost, USD / KWh {{x.running_cost|rate}}
Calculated Indicators:
Payback Period, years {{pp_years|rate1}}
Payback Period, years {{inv_pp_years|rate1}}
Electric power sales, MWh / year {{electricity_output|rate}}
Sales, USD / year {{sales|rate}}
Running Cost Total, USD / year {{running_cost_total|rate}}
Capital expenditures, adjusted, USD {{capex_corrected|rate}}
Specific cost of capacity by equipment, USD per 1 kW, at cost price {{c_specific_cost_eq|rate}}
Number of operating hours at full capacity, per year {{working_hours_per_year|rate}}
Fuel consumption at full capacity, m3 per hour {{total_fuel_consumption|rate}}
Yearly fuel consumption at full capacity, m3 {{yearly_fuel_consumption|rate}}
Cost of fuel, USD per year {{gas_cost|rate}}
Value, thousands of USD Year {{row.num}}
Investment {{(row.investment / 1000)|round|rate|hyp}}
Sales {{(row.sales / 1000)|round|rate|hyp}}
Operating expenses {{((row.fuel_cost + row.running_cost + row.extra_cost) / 1000)|round|rate|hyp}}
   including fuel cost {{((row.fuel_cost) / 1000)|round|rate|hyp}}
   including running cost {{((row.running_cost) / 1000)|round|rate|hyp}}
   including other expenses {{((row.extra_cost) / 1000)|round|rate|hyp}}
Fixed assets at the beginning of the year {{(row.property_value / 1000)|round|rate|hyp}}
Fixed assets at the end of the year {{(row.end_value / 1000)|round|rate|hyp}}
Fixed assets depreciation ({{x.dperiod}} years) {{(row.dep / 1000)|round|rate|hyp}}
Property tax {{(row.property_tax / 1000)|round|rate|hyp}}
Profit {{(row.profit / 1000)|round|rate|hyp}}
Corporate income tax {{(row.income_tax / 1000)|round|rate|hyp}}
Operating cash flow {{(row.cash_flow_operating / 1000)|round|rate|hyp}}
Project's cash flow {{(row.cash_flow / 1000)|round|rate|hyp}}
Accumulated project's cash flow {{(row.cash_flow_acc / 1000)|round|rate|hyp}}
Electricty net cost, USD / KWh {{(row.bare_cost)|rate3|hyp}}
Cash flow distribution between the investor and the company
Capital expenditures
Investor ({{x.investor_capex_share|rate}}%) {{(row.investment / 1000 * (x.investor_capex_share / 100))|round|rate3|hyp}}
Company ({{(100 - x.investor_capex_share)|rate}}%) {{(row.investment / 1000 * (1 - (x.investor_capex_share / 100)))|round|rate3|hyp}}
Cash flow
Investor ({{x.investor_cashflow_share|rate}}%) {{(-row.cash_flow_operating / 1000 * (x.investor_cashflow_share / 100))|round|rate|hyp}}
Company ({{(100 - x.investor_cashflow_share)|rate}}%) {{(-row.cash_flow_operating / 1000 * (1 - (x.investor_cashflow_share / 100)))|round|rate|hyp}}
Investor's cash flow {{row.cash_flow_investor / 1000|round|rate|hyp}}
Accumulated investor's cash flow {{row.cash_flow_investor_acc / 1000|round|rate|hyp}}

Investment Proposal

We invite potential investors to take part in the creation of a source of cheapest electric power for data-center applications.

The total amount of capital expenditures is estimated at 78,8 mln. USD.

Terms of participation are subject to negotiation. The minimum entry threshold for potential investors is set at 10 million USD.

 

Our Team

Ян Глухов

Yan Glukhov

Co-founder and President

Head of a number of large and medium-sized manufacturing enterprises in the field of engineering and metallurgy.

Owner of IZTM group of companies (http://iztm.ru).

Founder of a joint Russian-Chinese enterprise in partnership with QINYE HEAVY INDUSTRY CO., LTD.

Founder of Irkutsk City development project (http://www.irkutskcity.ru).

 
 
Дмитрий Зуев

Dmitry Zuev

Co-founder and Vice-President for Development

Experienced in creation and promotion of investment and banking services for the private sector. Held managerial positions at vertically integrated banking institutions, has competence in creating banking and brokerage products for the corporate and consumer banking sectors.

Head of the Commitee for Public Contracts and Digital Economy, Irkutsk regional branch, "OPORA ROSSII" Non-governmental Organization for Small and Medium Businesses.

 
 
Светлана Лепехова

Svetlana Lepekhova

Project Ecologist

PhD in Biological Sciences

Hirsch index of 15.

International researcher. Author of 35 inventions and projects in the field of cell biology.

Head of the Medical and Biological Research and Technology Department at Irkutsk Scientific Center, Siberian Branch, Russian Academy of Sciences.

Contact Us

  E-mail:
info@ngas-energy.com