Speech by Oleg Deripaska, Chief Executive Officer of Basic Element, at the Japanese-Russian meeting in Tokyo in preparation for the World Political Forum
“The State’s Role in Modernizing Industrial Technologies”
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 01.07.2010 |
June 29, 2010, Tokyo
Basic Element is an industrial group operating in a wide range of sectors, and is interested in the modernization process for objective reasons and is an integral part of that process. We use all the new solutions that are available in Russia and the world today, and are dedicated to incorporating the new ideas, that are under discussion now, in own future developments.
I would like to highlight those aspects that we incorporate in our own business in all fields. First, our Group is the biggest privately owned company developing resources in Siberia and the Far East. Take, for example, UC Rusal, the world's biggest aluminum producer. Aluminum is a key material for the future in view of the fact that it is virtually totally recyclable. Hardly any material in the world has the same sort of utilization ratio as aluminum.
The Group generates a large amount of electricity, mostly using hydro-resources. Siberia's hydro-power potential is enormous and highly developed, but it is held back by limited opportunities for power transmission. In the three centuries that Russia has been developing Siberia, it has, unfortunately, managed to move just 300 kilometers along the Chinese border due to fairly harsh climatic conditions, difficult terrain, and complications with transport infrastructure. Many programs have been adopted to develop Siberia with the state's involvement, and with a logistical content.
But today we need to consider the climatic aspect also: two years ago, for the first time, a ship that began its voyage in Germany succeeded in crossing the Arctic Ocean without an ice-breaker escort. Clearly, regions of the Russian Far North will in the next 50 years open up to development and the use of mineral resources, and those resources will be even more in demand. We are well aware that a growing population and the demand that is emerging in Southeast Asia and in India will require increased use of mineral resources. The issue that we are resolving today is how to meet that demand while at the same time scaling down the environmental impact, and reducing losses when developing mineral deposits many times, radically improving living conditions, and better integrating people living in Siberia and the Far East, who frequently work on a rotational basis, with social infrastructure and social life.
Therefore we are looking closely at what technologies will aid us in the next 50 years. These are new diagnostic technologies, field modelling for mineral deposits, communications opportunities using space programs. From the point of view of resource saving, we are certainly looking at hydro- and nuclear power, ultra-long-range power transmission, a departure from carbons when, for example, using inert anodes to smelt aluminium, and using less in the way of carbon materials in the reduction of metal oxides in order to cut greenhouse gas emissions by millions of tonnes.
We are certainly talking about the increased use of nuclear power, particularly in the new field of small reactors using lead-beryllium coolants. From the point of view of their industrial use, this is a key aspect for developing new regions, and this technology could very realistically emerge in the next seven or eight years, bearing in mind the advances made by Rosenergoatom. This involves reducing the capacity of reactors to 50-150 megawatts, and radically improving the safety of reactors by using molten alloys. All modern technologies, including the use of superheated steam, carry the risk of radioactive contamination if reactors are damaged for any reason. Special technical support is needed to eliminate leaks, and this creates further difficulties, particularly where remote locations are concerned. In reactors using lead-beryllium coolants this would be literally a momentary stoppage: the metal freezes and there is no danger of radioactive atmospheric, ground or water contamination. Using a new mixed fuel will bring us a further step towards closed-cycle technology. The small size of the reactors will generate totally different solutions for operating electrical capacity. Lengthening the fuel cycle, where a reactor can operate for up to 11 years without refuelling, will allow the use of self-contained sources of power generation, and will not involve replacing fuel elements on site.
I would like to reiterate that, from the point of view of industrial use, this is one of the main breakthrough technologies that will be used in the development of Siberia and the Far East.
The impact that the use of small reactors will have on improving the quality of life is inestimable: they can be used to desalinate water and to develop new fields with the recultivation of land after 25-30 years.
New logistical opportunities are also opening up with the use of satellite monitoring. We will reduce losses while improving the performance and speed of cargo trains, as we ship cargo over thousands of kilometers.
A key aspect is the customization of products in order to reduce the processing stage for primary commodities in the future in the Asian markets, be these Japan, Korea or China - that is the production of tailor-made alloys for clients. This will reduce the energy costs borne by our consumers and, of course, radically improve the quality of life for those preparing, operating and developing new fields using new communications capabilities. It goes without saying that we are analyzing all the solutions described from the point of view of providing high living standards and integrating people into social infrastructure.
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