Chadds Ford, Pennsylvania, USA, April 1st, 2007 – Bridgestone Associates, Ltd (www.brdgstn.com) today announced signing an agreement with Broad Street Capital Group (www.broadstreetcap.com) to perform a detailed technical evaluation on the reconstruction and/or replacement of a large combined heat and power plant at the State Enterprise Production Association Southern Machine-Building Plant named after A.M. Makarov (PA Yuzhmash) in Dnipropetrovsk, Ukraine. Broad Street Capital is the exclusive financial advisers to Yuzhmash for the project.
Under the terms of the agreement, Bridgestone Associates will take a lead technical role in performing a detailed evaluation of the existing CHP plant and its equipment, and develop detailed alternatives for its reconstruction and/or replacement. The existing gas fired plant serves the Yuzhmash Factory, a former ballistics missile manufacturing plant, with steam, hot water (for heating) and electricity. The CHP plant also serves a local hospital, a sports complex and approximately 200,000 local residents with district heating. The plant was originally constructed in the late 1940’s by the Soviet Union and some of the existing equipment that is still operating was taken from British and German warships after the war.
The technical and engineering evaluation to be performed by Bridgestone Associates is part of a $696,000 technical, economic and financial feasibility study awarded to Broad Street Capital to be used by the project sponsors to determine the best allocation of resources and provide detailed project information to potential lenders, equity investors and government officials. The study is being funded in part by a $556,929 grant from the United States Trade Development Agency (USTDA) (www.ustda.gov).
“This will be a very interesting and challenging project”, said Martin Anderson, President of Bridgestone Associates, Ltd. “The existing CHP plant is in a very poor state of repair with minimal metering and measurement devices so determining historic load profiles and energy use on which to base a new design will be difficult” continued Mr. Anderson. “The existing plant uses natural gas as its primary fuel, but the price of natural gas, which is imported from Russia, has risen considerably and the sales prices for energy, which are regulated, have not kept pace. We will be investigating alternative fuels such as biomass and coal to see if a technical alternative can be found that is economic, meets environmental requirements, and can be financed.”
About Bridgestone Associates, Ltd.
Bridgestone Associates, Ltd. is a Chadds Ford, Pennsylvania, USA energy consulting and development company focused on the evaluation, development, financing, design, construction and operations of energy production facilities, and on the use and utilization of energy. The company provides these services to developers and owners of power generating and other energy related projects worldwide, as well as commercial and industrial energy users.
About Broad Street Capital Group
Based in the heart of the financial district of New York City, Broad Street Capital Group is an international private merchant bank with offices and affiliates in Kiev, Moscow and Toronto. Founded in 1996, the firm carries on centuries of merchant banking traditions, providing a comprehensive array of services to international private and state owned companies, including merchant banking, trade and project financing, strategic business development and professional business services.