MOSCOW---June 21, 2013---GE (NYSE: GE) and the Russian Direct Investment Fund (RDIF) today signed a memorandum of understanding for a joint venture to cooperate in the construction of autonomous mini power plants built specifically for manufacturing facilities across Russia. The signing ceremony took place on June 21 at the St. Petersburg International Economic Forum. The document was signed by President and CEO of GE Russia/CIS Ron Pollett and RDIF Director Sean Glodek in the presence of GE Chairman and CEO Jeff Immelt and CEO of the Russian Direct Investment Fund Kirill Dmitriev.
Growing demand in autonomous electric power generation is being driven by the growth of the industrial sector in Russia. The joint project will focus on the construction of cogeneration systems (up to 25 megawatts) providing a direct supply of electricity and heat to large industrial companies and municipal entities. These systems are independent from transmission lines and heating mains and remain operational irrespective of failures in the mainstream power supplies.
Increasing power consumption, strict environmental requirements and a high level of infrastructure depreciation are driving the demand for combined generation of electricity and heat. GE is a proven global leader in providing efficient and reliable power cogeneration equipment and expertise and has substantial experience working with Russian companies.
Ron Pollett, president and CEO, GE in Russia and CIS: "Autonomous electric power systems based on innovative new technologies offer considerable economic and environmental benefits. We expect that this collaboration will allow us to expand our geographic footprint, boosting modernization of the national industrial infrastructure".
Kirill Dmitriev, CEO, RDIF: "The partnership between RDIF and GE is a classic example of how the world's technology leader demonstrates successful localization of the advanced power generation systems in Russia. The project will help in solving the problem of electricity access specifically for the small manufacturing companies located in different country regions."
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About the Russian Direct Investment Fund
RDIF was established in June 2011 to make equity investments primarily in the Russian Federation. RDIF's management company is a 100 percent subsidiary of Vnesheconombank. In each investment it makes, RDIF is mandated to secure co-investment that as a minimum matches its commitment, thus acting as a catalyst for direct investment into the Russian economy. Further information at www.rdif.ru.