KAMAZ and Power Machines signed a memorandum of cooperation

Power Machines and PJSC KAMAZ signed a memorandum aimed at cooperation in the production of modular gas engine power plants (GEPP) powered by KAMAZ and KAMAZ-Baudouin engines. The parties consider the possibility of establishing a joint venture for the production of domestic GEPPs.

The documents were signed by Timur Lipatov, General Director of Power Machines and Sergey Kogogin, General Director of KAMAZ. Thus, the partner companies consolidated their intention to localize in Russia the production of modular gas engine power plants (GEPP) with a capacity of 0.5 MW or more.

The purpose of creating a new product is to meet the needs of customers in electrical, thermal and cooling energy through the development and production of GEPPs with modular, and, therefore, more flexible, configuration.

The GEPP will be based on the Russian gas reciprocating engines manufactured by KAMAZ and KAMAZ-Baudouin. Power Machines will provide the GEPP with in-house produced generator, heat exchange and cooling equipment, as well as with automatic control systems (ACS) of their own design.

The partner companies intend to offer various service models to their customers. These include energy service contracts, lease, equipment hire purchase leasing, and procurement of concessional financing for the needs of their customers. This approach to cooperation will make the product more accessible to a wide range of consumers, since it will not require significant capital investments for consumers during GEPP construction. Given that the cost of electricity transportation may reach up to 50%, the proposed solution seems very attractive.

The new product, which has no analogues in Russia, will comply with the provisions of RF Government Decree No. 719 which contains the requirements for industrial products manufactured in Russia. The use of new Russian-made GEPPs will significantly increase the level of energy efficiency and energy security of the country.

“The issues of cost reduction in the power sector have always been one of the most urgent ones. We are glad that the extensive potential of the company is in demand, and we are willing to team up with the partner in the search for competitive opportunities for localizing the production of GEPPs in Russia and creating a highly demanded, promising, unique and at the same time affordable product. For us, this project opens up new opportunities for development", said Sergey Kogogin, General Director of PJSC KAMAZ.

“Distributed small-scale generation takes an increasing share in power generation volume in Russia, as it allows consumers to reduce energy costs, while reducing operating costs, which is important. The joint project with KAMAZ will allow our company to expand its product range, and will provide potential customers with flexibility in choosing a model to implement a power supply project. A new modular design principle for GEPPs, proprietary automated process control systems, and specific software will allow customers to choose the most suitable solution,” said Timur Lipatov, General Director of JSC “Power Machines”.