14:30 20 Feb 2024

Japanese companies to support Ukraine with modernization of thermal power plants

Photo: flagi.in.ua

The Ukrainian gas operator, Naftogaz Ukraine, has signed memorandums with two Japanese companies on the modernization of thermal power plants and the development of a joint wind energy project, Rubryka reports.

What's the problem?

Decarbonizing the energy sector and reducing carbon emissions to limit climate change are issues that are at the forefront of almost all global leaders.

Ukraine is no exception, despite being at war with Russia for almost two years now and Russia massively targeting the country's energy infrastructure.

Moreover, most heating plants in the country have outdated equipment.

"TPPs in Ukraine, especially those transferred to Naftogaz, were built a long time ago and have extremely outdated infrastructure," said Oleksii Chernyshov of Naftogaz Group.

What's the solution?

Two Japanese companies have agreed to modernize TPPs and develop a joint wind energy project by signing relevant agreements.

The Japanese corporation Sumitomo Corporation (SC) will help conduct technical and economic justification for the modernization of heating systems in Ukraine with the support of the Japanese government.

SC will also assist in attracting financing from Japanese state financial institutions.

How does it work?

"We are very interested in their modernization using the best Japanese technologies. This is an important cooperation that, we hope, will lead to real infrastructure projects," said Naftogaz Group.

The second memorandum involves the installation of 1 MW wind turbines. Naftogaz Group signed an agreement with the Japanese company Komaihaltec for this purpose.

The turbines will be installed at one of the group's facilities.

"This project is part of our movement toward achieving carbon neutrality. It will allow replacing energy from traditional sources consumed by the facility with clean wind energy," said Chernyshov.

Sumitomo is a large Japanese industrial and trading group of companies with diversified business interests in various sectors worldwide. It has a history of over 400 years. The group's total assets are estimated at around $90 billion.

Komaihaltec is a Japanese company specializing in the production of wind turbines and other equipment for renewable energy.

Ukraine and Japan have signed agreements to provide Ukraine with a $100 million grant for Phase 3 of the Emergency Recovery Program.

Conference on Ukraine's Recovery in Japan

Japanese Prime Minister Fumio Kishida stated at the opening of the Conference on Ukraine's Recovery in Tokyo that Japan would continue to provide Ukraine with assistance in rebuilding and share its recovery experience after devastating earthquakes.

During the Japanese-Ukrainian Conference on Economic Growth and Reconstruction in Tokyo, 56 documents on cooperation between Ukraine and Japan were signed.

Also, Ukraine and Japan have signed the Convention for the Avoidance of Double Taxation and the Prevention of Tax Evasion and Tax Avoidance and its Protocol.

Ukraine has also joined the Joint Crediting Mechanism, which will allow attracting Japanese investments in decarbonization programs in various sectors of the economy.

In addition, Japan will allocate €1.25 billion to support Japanese investors in Ukraine.

If you have found a spelling error, please, notify us by selecting that text and pressing Ctrl+Enter.

Spelling error report

The following text will be sent to our editors: