Energopolyus to Eventually Buy Norilsk Nickel’s Stake in Plug Power

MOSCOW. Nov 15 (Interfax) – EnergoPolyus, the company that will be created in 2008 to spin off the energy assets of Norilsk Nickel (RTS: GMKN), will in future buy the mining giant’s 49.995% stake in the Smart Hydrogen joint venture, according to an information memorandum.

Smart Hydrogen owns 34.88% of Plug Power, a U.S. developer of fuel cells and environmentally clean energy products.

Norilsk Nickel expects the deal to be carried out at a market price.

The remaining shares in Smart Hydrogen are owned by the Interros holding, which represents the interests of Vladimir Potanin, one of Norilsk Nickel’s principal shareholders.

The stake in Plug Power was bought in 2006 for $241 million.

Plug Power, which is traded in New York, increased revenue by 32% year-on-year to $6.64 million in the first half of 2007. The company had a net loss of $27.9 million.

Interros deputy general director Sergei Batekhin said earlier that Plug Power remains in the red due to expenditures on R&D, and that it should become profitable by 2011.

Plug Power has a strategic partnership agreement with New Energy Projects National Innovation Company, in which Norilsk Nickel holds a 74% stake. This stake will also be spun off into EnergoPolyus.

EnergoPolyus will be created by spinning off Norilsk Nickel energy assets worth $7 billion, with a debt of 15 billion rubles.

(c) 2007 Daily News Bulletin; Moscow – English. Provided by ProQuest Information and Learning. All rights Reserved.