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. Last Updated: 07/27/2016

RusAl Plans to Boost Power Generation, Lower Emissions

The world's top primary aluminum producer, United Company RusAl, said Tuesday that it aimed to generate 140 billion kilowatt-hours of electricity by 2013, equal to some 14 percent of the country's energy output.

"Our desire, idea and strategy is to provide RusAl's projects with our own hydro-generating capacities," said Artyom Volynets, RusAl's strategy and corporate development director.

He said RusAl was looking at other electricity generating projects for the rapidly developing company, including coal, both in in the country and abroad, but would not elaborate further.

RusAl was formed in March by a merger of privately owned firms RusAl and SUAL, and assets of commodities trader Glencore. It produces all of the country's and 12.5 percent of the world's primary aluminum.

Earlier this week RusAl, which is building the huge Boguchany power station jointly with hydroelectric power firm Hydro OGK, said it was interested in bidding for other energy assets.

Volynets said RusAl planned to double its share in Russia's secondary aluminum production to 50 percent, but did not give details.

RusAl also said it was going to invest over $1.4 billion in its modernization from 2007 to 2013 in various environmental protection programs.

The initiative will allow RusAl to sell carbon credits to offset some of the costs, Volynets said.

"Long term, it means that during the full production cycle there would be zero effect on the environment despite the power-intensity of our industry,'' Volynets said.

Trading in emission credits almost tripled last year to $30.1 billion, according to World Bank figures. Credits, or permits, are either granted by governments or created by projects that curb greenhouse gases.

Reuters, Bloomberg