Rusal, the aluminium producer, will build its own nuclear reactor as soaring energy costs force large-scale industrial projects to find their own power sources.

The Russian company, the largest producer of aluminium in the world, will spend at least $6 billion (£2.9 billion) building a smelter and two new reactor cores at a power plant on the Volga River.

Aluminium smelting requires vast quantities of electricity and Rusal has been using hydroelectric power from Siberian dams.

The company wants to own its power providers and is developing nuclear as part of a diversification strategy.

Rusal also said that nuclear energy was a good match to aluminium smelting because it was capable of providing greater quantities of power than hydro.

Rusal will add two new reactor blocks to the Balakovsky power plant in Saratov, about 400 miles (645km) southeast of Moscow.

They will generate 2,000 megawatts, equivalent to 5 per cent of the UK’s total supply, and power a smelter that will produce more than 1 million tonnes of aluminium a year.

The smelter will increase Rusal’s total production by 25 per cent.

Rising oil and gas prices are making it vital for large industrial companies to find sources of power that they can own or control.

Russia’s steel and aluminium industry already benefits from access to Soviet-era hydroelectric dams while China is building at least one new coal-fired power station a week to meet its industrial demand.

The Canadian province of Alberta is considering using nuclear power to allow companies to access oil sand reserves in its territory.

Alexander Bulygin, the chief executive of Rusal, said: “This initiative will enable our company to strengthen its power base through the construction of one of the most environmentally friendly energy sources, as well as growing aluminium production by over 25 per cent.”

Rusal already operates the world’s two largest aluminium smelters.

Bratsk is expanding capacity to 1.044 million tonnes a year by 2011 and the Krasnoyarsk smelter will grow to a capacity of 1.035 million tonnes by next year.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax