Add Press Release

Titan Group 14/09/2006

Titan Group launches program of alternative fuel production

The Titan group of companies (Omsk) starts the implementation of its long-term program of the manufacture of alternative fuel from renewable natural energy sources in Russia, the press office of Titan reported. The project developers expect the payback period to be seven years.

The first phase of the alternative fuel program is the opening of the first manufacturing complex Biokhim (Taiynsha, Northern Kazakhstan) scheduled for 15 September. Biokhim is the joint project of the Titan group of companies and the Kazakhstan-based TOO Basko company. The implementation of the project became possible thanks to the support by the Kazakh government. The total cost of the Biokhim complex is about $100 million. It is planned to manufacture $63.1 million worth of products, with bioethanol revenues accounting for 57% of this amount.

The driving forces behind the development of the alternate fuel industry (and the bioethanol segment in particular) are: global trends toward the search for new technological solutions for the manufacture of different fuels from environmentally friendly additives; world oil reserves’ non-renewable character; soaring gasoline prices; greenhouse emissions; the need to develop the agriculture industry through alternative use of agricultural products. The bioethanol products manufactured by Biokhim through processing of wheat will be supplied to the Ecooil production complex (Omsk) for further conversion into ETBE (ethyl tert-butyl ether), a raw material to produce high-octane gasoline.

While launching its first alternative fuels project, Titan Group is in negotiations on similar projects in different regions of the Russian Federation. In the next few years, supported by the Russian Academy of Sciences, the company will build other unique complexes for manufacturing alternative fuel.