Air Liquide Balakovo

Location:

Russia

Project number:

42712

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

17 Apr 2012

Status:

Complete

PSD disclosed:

21 Feb 2012

Translated version of this PSD: Russian

Project Description

The proposed project covers the construction and operation of an on-site air separation plant to supply industrial gases to new steel mini-mill owned by Severstal now being built near Balakovo, Saratov Region, Russian Federation.

Air Liquide group will provide managerial and technical know-how to the Company and Severstal will ensure a long-term off-take for oxygen and other industrial gases produced by the project. This is consistent with the outsourcing arrangements that Air Liquide operates around the world.

Transition Impact

Application of best industry practices through full outsourcing model. In Balakovo, the full outsourcing model will be applied, in which Air Liquide as an outside industrial gas supplier will operate independently on the site of a steelmaker and cover all its demand for industrial gases. Expanding the best industry practices of outsourcing non-core operations to specialised industry companies will serve as a good example that can be repliaced by other local players.

The proposed project will introduce the most advanced technology worked out by Air Liquide for producing and supplying industrial gases, providing a high-profile model for the transfer of modern technology and know-how into a major Russian industry. There will also be significant associated skill transfers in terms of quality management, energy efficiency and environmental performance from strategic investor.

The Client

OOO Air Liquide Balakovo, a subsidiary of Air Liquide.

Air Liquide is world’s largest industrial gases supplier.

EBRD Finance

Up to RUB 800 million senior long term loan.

Project Cost

RUB 1,200 million.

Environmental Impact

Environmental classification and rationale

The project is categorised B. The construction of an air separation plant is associated with a number of site specific issues, which can be readily identified, assessed and mitigated through measures as defined in the Environmental and Social Action Plan.

Key environmental issues and mitigation

Environmental issues associated with the operation of an oxygen plant are not significant, notably as this will be a new installation constructed within a relatively new mini-mill which will employ state-of-the-art technology. The plant will be operated in accordance to Air Liquide’s environmental best practices, which are based on EU environmental standards and requirements. The location is entirely within the current boundary of the Severstal facility and no extension to any Sanitary Protection Zone is required. All cooling water will be recycled. These measures are aimed to ensure that the environmental issues will be sufficiently managed to prevent or minimise impacts on staff and local population as well as on the environment.

Summary of Environmental and Social Action Plan

The Company will be required to adhere to Russian and EU environmental, health and safety regulations and standards. In addition to these measures on environment, the Company is also developing a Stakeholder Engagement Plan in line with the Bank’s Performance Requirement 10.

Monitoring and reporting

The Company will monitor the environmental impact of its operations in accordance with national law and regulations. The Bank will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing annual environmental reports prepared for the project covering:

(i) ongoing performance of project-specific environmental, health and safety activities as reflected in the results of periodic and quantitative sampling and measuring programmes, and

(ii) the status of implementation of environmental mitigation and improvement measures. The Bank’s representatives will also conduct periodic site supervision visits when deemed appropriate.

Technical Cooperation

none.

Company Contact

Dmitry Kuznetsov,
General Director

OOO Air Liquide Balakovo
Office No 207, 9 Lenina
Balakovo city, Saratov region
413840 Russia

Tel: +7 495 641 2898; Fax: +7 495 641 2891
Email: dmitry.kuznetsov@airliquide.com

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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