Russia: German Pellets signs letter of intent for a 500 000 t pellet mill in Nizhny Novgorod
Nizhny Novgorod region governor Valery Shantsev and Financial Director of German Pellets Hans-Dietrich Alt has signed a protocol of intent: the German company intends to invest about €170-200 million in a biofuel plant with capacity of 500,000 tonnes of pellets.
The product will be delivered to logistics centres of the company in the north Germany and Italy. The main market for pellets at this stage will be Western Europe, but in the long run Eastern Europe is also regarded.
German Pellets is one of the leading producers and distributors of wood pellets in the world. Production volume of 15 enterprises of the company amounts to 2.3 million tonnes. Two plants are located in the US, one in Austria, the rest are in Germany.
Nizhny Novgorod, colloquially shortened to Nizhny, is, with a population of 1,250,615, the fifth largest city in Russia and the administrative center of Nizhny Novgorod Oblast with 3,310,597 inhabitants. It is located at the river Volga, the largest in Europe and is important for navigation. Via Volga river the Caspian sea, the Black sea, the Baltic sea as well as the capital Moscow can be reached through connecting channels. Also through the Russian railway net is available for transport and ports on several locations can be reached.