Kazakhstan Chamber of Commerce in the USA


Kazakhstan to Host International Forum to Discuss “Future Energy” 0

Posted on June 20, 2013 by KazCham

PRNewswire, June 11, 2013

ASTANA, Kazakhstan — Oil-rich Kazakhstan is taking a lead in steering Central Asian region in becoming a pioneer in alternative energy resources. Kazakhstan government, led by President Nursultan Nazarbayev, has committed itself to launch an unprecedented challenging campaign to go green to reap the benefits of renewable energy in the coming years.

More than 800 delegates from over 35 countries are slated to descend in capital Astana on October 8-9, 2013 to take part in the VIIIth edition of KAZENERGY Forum that would discuss “Future Energy- Eurasian Prospects.” Besides some heads of states and leading politicians, senior experts from the field of energy, gas, oil and renewable energy will take part in the two-day meeting. The vision, strategy and key approaches towards Future Energy would be discussed during the conclave.

Benefits, risks and prospects of the Future Energy will also be discussed at the Forum.

The international meeting would be hosted by KAZENERGY, an association of more than 50 major national and international energy companies including production, processing, transportation, and service companies as well as those of power and nuclear industry. The Association aspires to promote the sustainable development of the oil-gas and power industry in Kazakhstan.

The meeting will host deliberation between the participants on the future of hydrocarbon resources and how to meet the goals of attaining energy through non-conventional resources. Kazakhstan is leaving its imprint on the global issue of sustainable energy as the KAZENERGY Forum continues to grow out of its national format into an event that establishes its importance on the international scale.

President Nursultan Nazarbayev has already unveiled a vision 2050 plan that aims at putting Kazakhstan in the top 30 competitive nations in the world. The nation has already launched an ambitious Green Bridge initiative under which it plans to produce 600 megawatts through non-conventional resources in the next couple of years to coincide with the hosting of EXPO-2017. The Green Bridge initiative has already received the support of the international community at the UN’s Rio +20 Summit and the backing of countries making up three-quarters of the world’s population. Major foreign investors including the European Development Bank, the International Finance Corporation, and partner governments have expressed an interest in taking part.

Prime Minister of Australia Johan Howard, German Chancellor Gerhard Schroder, Prime Minister of Spain Jose Maria Aznar and President of Poland Aleksander Kwasniewski are among the leading dignitaries that have participated in previous editions of the KAZENERGY Forum.

The Chairman of KAZENERGY, Timur Kulibayev said, “The Forum contributes more effective cooperation of industrialized and producing nations and it facilitates the development of mutual understanding and international partnership.”

According to Kazakhstan Prime Minister Serik Akhmetov, “KAZENERGY Forum is becoming a recognized international dialogue platform for discussing the most sensitive issues facing national and global energy issues.”

On the sidelines of the two-day event, KAZENERGY Youth Forum will be held in which youth of the

nation will hold constructive negotiations concerning the upcoming challenges in the Energy sector in the coming years.

For further details, please contact

KAZENERGY Press-Service

Bauyrzhan Altynbekov

+77172790181, 790199



Harry Nanda

Media Gurus



Кazakhstan – U.S. Investment Forum 2010 0

Posted on July 27, 2010 by Sergey Sek

The Embassy of Kazakhstan will be hosting the third annual Kazakhstan – U.S. Investment Forum 2010
on November 8-9 in New York.
The forum, an official Government of the Republic of Kazakhstan event in partnership with Newsdesk Media Inc, is entitled: ‘Program of Accelerated Industrial-Innovative Development of Kazakhstan’.
This year’s event will highlight the Government of the Republic of Kazakhstan’s initiatives to increase the productivity
and competitiveness of the economy in order to provide sustainable and balanced development. Following a teleconference address by H.E. Karim Massimov, the Prime Minister of Kazakhstan, the forum’s agenda will provide in-depth analysis across the designated sectors of Agriculture, Construction and Metallurgy, Oil & Gas and Petrochemicals, Machinery, Transport and Telecommunications, Energy, and the Chemical and Pharmaceutical Industry.
A high-level delegation from Kazakhstan led by H.E. Asset Issekeshev, Deputy Prime Minister and Minister of Industry and New Technologies, will participate along with H. E. Richard Hoagland, United States Ambassador to the Republic of Kazakhstan. The forum will also host the formal launch of the Republic of Kazakhstan’s Chamber of Industry and Commerce representative office in the United States.
For further information, please visit: www.kazakhinvest.com

Non-conventional energy gets higher priority 1

Posted on April 13, 2010 by KazCham

KAZAKHSTAN’S TERRAIN AND geography makes  it a highly suitable location for the generation  of many types of non-conventional energy. Its  empty windswept steppes, clear skies and under- exploited reserves of farmland can all be utilised to  generate electricity, thereby reducing the country’s  dependence on fossil fuels.

At present, some 80 per cent of the electricity  consumed in Kazakhstan is from coal-fired  power stations, with the remainder generated by  hydropower. There are not yet any provisions for  other forms of non-conventional energy to connect  to the national grid. The law on support for usage of  renewable energy, currently being considered by the  Kazakh parliament, is set to change that, and open  the way for large scale installations.

Given Kazakhstan’s abundant coal, oil and gas  reserves, the question naturally arises: “why invest in  alternative energy?” However, Kazakhstan’s oil and  gas reserves are its largest source of export revenues,  and – especially when Kashagan starts production –  are expected to continue to bring in money for many  decades to come. If some of the growing domestic  demand for energy can be derived from other  sources, this will conserve reserves of fossil fuels.

Early investment into alternative energy sources  will also protect Kazakhstan against future increases  in oil and gas prices and – in the longer term – the  time when its hydrocarbon reserves are exhausted.  “We all understand that the resources we have  underground will end one day. Oil and coal would  run short,” says Nurlan Djienbayev, director of solar  technology company ND&Co. “In order to have a  softer transition, we need to think about it now.”

In addition, Kazakhstan’s electricity generation  capacity is not evenly distributed across the country.  Power is imported from Russia in the north, and  Kyrgyzstan and Uzbekistan in the south. The main oil and gas reserves are in the west, the coal-fired power  stations in the north, near Karaganda and Ekibastuz,  and most of the hydropower plants along the Irtysh  river in north-east Kazakhstan. “Renewable energy can contribute to Kazakhstan’s  energy independence by being deployed in areas such as -south and north Kazakhstan, where power is currently  imported,” says Gennady Doroshin, head of the UNDP’s  Kazakhstan Wind Power Market Development Initiative.  “It can provide power to remote consumers, and reduce  transmission losses and the need for substantial power  transmission line construction.”

As Kazakhstan’s economy grows, demand for  electricity also increases, making the uninterrupted  supply of power to even the largest urban centres, such  as Almaty, a real challenge. Power cuts are still frequent, h

“Kazakhstan has a vast territory and its population  is scattered. After the break-up of the USSR, a  dismantling of energy networks took place,” says  Djienbayev. In the 1990s, Kazakhstan lost 90 per cent  of its hydropower capacity, when many smaller plants  were shut down.

“In some areas, villages are arranged within a large  distance from main energy networks,” Djienbayev  continues. “Today, there is a lack of electric power in  many regions of Kazakhstan, including Almaty. Solar  atteries could have significantly supplemented main  networks, and helped to solve this problem. But we  cannot do this today, because of the absence of the law.”

Moreover, Kazakhstan is Central Asia’s largest  emitter of greenhouse gases. According to 2004  data from the International Energy Agency (IEA),  emissions amounted to around 6kg of carbon dioxide h for each dollar earned. The coal-dominated energy  sector accounts for around 80 per cent of total  emissions. Poor air quality is an issue in many cities  of Kazakhstan. With the country expected to ratify  the Kyoto Protocol in the near future, renewable  energy will be a way of reducing its emissions.

Although the new law will be needed for non- conventional energy to be adopted on a large scale,  there are already several initiatives across the hydro,  wind, solar and biofuels spectrum.

The UNDP Wind Power Market Development  Initiative is a full-scale project to promote the  development of the wind energy market in  Kazakhstan. The UNDP is helping the Kazakh  government to develop a national programme on  wind energy development. This will have targets of  250-300mw of wind installation by 2015 and about  2,000mwby2030.

The European Bank for Reconstruction and  Development is also able to support non-conventional h energy projects through its $75 million framework  facility to finance investments in sustainable energy

– both in projects to increase energy efficiency in  the industrial sector and in small renewable energy  projects. Doroshin stresses the excellent potential of  Kazakhstan for wind energy generation.

“Kazakhstan is one of the best countries in the  world for large scale wind installations because of the h high wind potential and land availability,” he says.  “Many areas of the country have annual wind speeds  of more than 6m/c.” This potential, however, is little  used. This is evident, for example, at the Jungar Gates  on the Chinese border. On the Chinese side, wind  energy stations have been in place for some time; in  Kazakhstan they are still at the planning stage.

There are already two major solar stations in  Kazakhstan, one in Alakol and another in the  Kuldzhinkii region. Four additional stations are  planned under the UNDP initiative – one in Aksai  Gorge and three in Talgar Gorge. There are also  various private installations in the west Kazakhstan  oblast for the oil industry, and in the Almaty region – the largest being a 70 sq m installation to provide  electricity for the IT Park free economic zone. Some  70 per cent of the technology needed for solar  power generation, including accumulator batteries,  is manufactured in Kazakhstan. However, solar  batteries have to be imported. This situation is on the  verge of change, as there are a number of projects to  produce photovoltaic technologies in the country.  Thyssen Krupp Mannex is supplying equipment to  Silicium, Kazakhstan’s planned silicon metal plant in  Karaganda. Lancaster Industrials and Kun Renewables h are setting up a $390 million polycrystalline silicon  plant in Astana. The Investment Fund of Kazakhstan  and the Development Bank of Kazakhstan have  already agreed to finance the project.

Conditions for solar power generation are favourable -across southern Kazakhstan. The Almaty region  rarely goes without sun for more than two five-day  periods in a year. However, until the law is adopted,  systems power generation in Kazakhstan will remain  small-scale. “Solar energy usage is very small, the  figures are insignificant. The main reason for the slow  development of alternative energy resources is the  absence of legislation,” says Djienbayev.

It is a similar situation in the biofuels sector.  According to data from the Ministry of Agriculture,  Kazakhstan has the potential to produce 300,000 tonnes of biofuels a year. Production costs are estimated to be  half of those in western Europe and the US.

However, at present Kazakhstan has just one  functioning biofuel production plant, the Biochim  plant in the north-Kazakhstan oblast. A second plant,  in Taraz, is currently out of order, and a third is being  built in the city of Novoishimsk.

“The most difficult thing is production: there is  only one operating plant and it cannot meet all of the  demand,” says Beisen Donenov, director general of the  Kazakhstan Biofuels Association, which was set up  in 2007 to develop the industry. “Besides, due to the  country’s food security interests, there are limitations  on raw materials for biofuels production. And because  there was a smaller grain harvest last year, the biofuel  plant did not operate at full capacity.”

Next-generation biofuels production technologies,  such as those being installed in the Novoishimsk plant,  would use waste products as raw materials. This would  overcome objections related to food security that have  held back popular acceptance of the biofuels industry.

“At the beginning, there was misunderstanding  and aversion towards biofuels production from crops  producers. This is because many people reacted  negatively to the use of grain for biofuels production  rather than for food,” says Donenov. “However,  Kazakhstan has always had vast lands for crops. And  besides, new technologies allow the use of crop waste  and leftovers for biofuels production.”

There is already considerable private sector interest  in biofuels. The North-Kazakhstan Plant belongs to  a consortium of Kazakh companies, and the Taraz  Plant is 30 per cent state-owned, with the remainder  in private hands. There are plans to sell a 50 per cent  stake in the new plant to private investors.

Toyota has signed an agreement with the  Kazakhstan Biofuels Association, and according to  Donenov, is ready to start developing next-generation  biofuels production technologies in Kazakhstan. The  association is also working with several US scientific  institutions on the production of aviation kerosene  and other new generation biofuels.

“According to our calculations, we could build  at least 40-50 biofuels plants in Kazakhstan. The  question is in investments,” says Donenov. “However,  I must admit that the crisis decreased the number  of interested investors. In this regard, the crisis has  negatively affected our industry.”

The two key factors holding back the development  of biofuels and other types of renewable energy are the  lack of investment at present, and the need for a legal  framework. Kazakhstan’s parliament is widely expected to pass the necessary legislation this summer. The  question of investment is more open; those projects  without funding from the Kazakh government or  international development agencies, are likely to be  held back until the global economy recovers.

Invest in Kazakhstan An official publication of the Government of the Republic of Kazakhstan, 2009. Pages: 64-67.

Alternative energy 0

Posted on April 10, 2010 by KazCham

The sharp slowdown in economic activity, and especially the steep decline in mining and metals processing, has had the completely unintended benefit of banishing earlier fears that years of under­investment had left Kazakhstan dangerously short of electricity.

Over the first two months of 2009, electricity output declined by 9.7 per cent compared to the same period a year earlier, when the economy was still expanding at close to double digits. With output expected to rise only slowly, the economic slowdown provides a welcome respite for the power companies. It gives them breathing space to start building coal-fired power stations, as at Balkhash, or refurbish older Soviet-era power stations at Ekibastuz and elsewhere.

The decrease in demand for energy also provides extra time in which to complete construction of a north-south extension to the national power grid. This is needed to bring reliable power to the more heavily populated south of the country where the two biggest cities, Almaty and Shymkent, are situated and where most people live. The fragility of the supply situation here was underlined in April when much of Almaty was plunged into darkness by a breakdown in hydro-power supplies from Kyrgyzstan, whose Toktogul hydropower reservoir ran out of water before the end of winter.

Such problems should be eliminated once the first stage of the 3,000km gas pipeline, which will carry up to 30 billion cubic metres (bcm) of Turkmen, Uzbek and Kazakh gas east to China, is completed later this year. The new export line will give a steady and secure supply of gas to the whole of southern Kazakhstan, for the first time.

The new export pipeline to China does not run from south to north, as pipelines did in Soviet days to carry Central Asian gas north to Russia, but from west to east, along Kazakhstan’s southern borders with its gas-rich Central Asian neighbours. While the bulk of gas will be exported to China, up to 10bcm annually will be available for consumption in southern Kazakh homes, power stations and factories.

What remains to be seen is whether the combination of tighter credit and reduced fears of power shortages will slow development of alternative energy sources, which were building momentum before the global crisis struck the Kazakh economy, and especially its power-hungry metals, mining and cement sectors.

AFTER A DECADE of heavy investment to develop the  country’s on- and offshore oil and gas fields and coal -mines, President Nazarbayev has given his backing  to greater investment in non-conventional or  alternative sources of power – for which Kazakhstan  has huge potential.

President Nazarbayev’s interest in improving  alternative energy reflects growing awareness that  Kazakhstan is an under-populated country that  covers a huge area, and that there is in fact great  potential for various forms of alternative energy,  including wind power, solar-panel farms and biofuels. Enormous tracts of marginal farming or steppe  land are potentially suitable for biofuels farming.  Situated far from the oceans, much of the country  enjoys plenty of sunshine, especially in the south,  and constant winds blow virtually unhindered across  thousands of kilometres of flat or undulating steppe,  semi-desert and mountains.

At the moment, most of this potential is untapped,  but that should change once the Majliis, or  Parliament, approves legislation designed to promote  alternative energy and its connection to the grid,  where appropriate. The new interest in alternative energy also fits in with the government’s renewed  focus on rural development and plans to encourage  people to stay in villages and small towns. These can  often be better supplied from locally produced energy than a national power grid, which is focused on  supplying the main towns and industries.

At present, around 80 per cent of all energy  consumed is generated in coal-fired power stations,  with additional contributions from hydropower,  mainly from big dams across the Irtyush river, which  flows west and north for thousands of miles from  China through the northern Kazakh mining belt and  right across Siberia to the Arctic ocean. In the 1990s  Kazakhstan lost around 90 per cent of its hydropower  capacity when smaller plants were shut down.

“Renewable energy can contribute to Kazakhstan’s  energy independence in areas such as north  and south Kazakhstan, which currently import  energy,” says Gennadi Doroshin, head of UNDP’s  Kazakhstan Wind Power Market Development  Initiative. It can provide power to remote consumers,  reduce transmission losses and the need for power  transmission lines.” The UNDP is helping the  government with a national wind energy development ^ programme, which targets 250-300mw of wind  installations by 2015 and up to 2,000mw by 2030.

“Kazakhstan is one of the best countries in the  world for large-scale wind installations because of  the high wind potential and land availability. But  the potential is hardly used. On the Chinese side of  the Jungar Gates border crossing, east of Almaty, for -» example, wind energy stations were set up long ago, h but in Kazakhstan they are still only at the planning stage,” he adds.

Nurlan Djienbayev, director of solar energy  company ND&Co, adds: “Many villages are far from  main energy networks and power is short in many  regions, including Almaty. Solar batteries could  have supplemented the main networks, but we  cannot do this yet because of the absence of the  relevant legislation, this is the main reason for slow  development of alternatives.”

Two big solar projects are already in operation – at  Alakol and Kuldzhinkii – and four more are planned  under the UNDP initiative. But there are also smaller  private schemes set up by oil companies in western  Kazakhstan and in the Almaty region, where the  largest helps power the IT Park free economic zone. n addition, there are a number of projects to  produce photovoltaic technologies, with Germany’s  Thyssen Krupp Manex supplying advanced technology to Silicium, Kazakhstan’s planned silicon metal plant  in Karaganda. Kazakhstan’s Lancaster Industrial  and Kun Renewables are setting up a $390 million  polycrystalline silicon plant in Astana, with finance  from the Investment Fund of Kazakhstan and the  Development Bank.

According to the Ministry of Agriculture,  Kazakhstan also has the potential to produce up to  300,000 tonnes of biofuels annually at around half  he cost of production in western Europe or the US.  “Currently only one biofuel plant is operational. This is the Biochim plant in north Kazakhstan and it cannot  meet demand,” says Beisen Donenov, director general  of the Kazakhstan Biofuels Association, set up in 2007  to develop the industry. “The country’s food security  interests impose limitations on raw material for  biofuels production. Because of a smaller grain harvest h last year, the plant did not operate at full capacity.”

A second plant at Taraz was not operational at time of writing and a third is being built at Novoishimsk.  The latter will be the first ‘next generation’ plant  that uses non-food or agricultural waste products  as raw materials. This is only the tip of a potential  iceberg. Toyota has just signed an agreement with  the Biofuels Association to start developing next- generation biofuels technologies and the association  is also working with several US scientific institutes  with the aim of producing aviation kerosene and  other new-generation biofuels.

Invest in Kazakhstan An official publication of the Government of the Republic of Kazakhstan, 2009. Pages: 69-71.

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