News

10 June 2015

NLMK Group launches new green energy facility

NLMK Group launches new green energy facility
NLMK Group (LSE: NLMK), Russia’s leading manufacturer of high value added steel products, has successfully completed hot testing and launched operation of a new top-pressure recovery turbine (TRT), a green energy-generating facility, at its Lipetsk production site.

Top-pressure recovery turbines generate energy using excess blast furnace gas pressure. Blast furnace gas produced during the smelting of hot metal in blast furnaces at Novolipetsk is also channeled to a heat power plant and a recovery cogeneration plant for captive energy generation.

An additional TRT is currently under construction with launch scheduled in 2016. The total design capacity of the two turbines that will form the TRT complex is 28 MW. The TRT facility will use gas produced by blast furnaces No.6 and No.7, with the project set to increase the plant’s energy self-sufficiency from 54% to 56%. The TRT will therefore reduce the amount of energy that must be purchased for the plant by 200 million kWh per year, which accounts for approximately 6% of total purchased energy.

Investment in the two TRTs is estimated at 1.9 billion rubles; resulting in a payback period of about 2.5 years.

Video presentation about the project in English:

NLMK Vice President for Energy Alexander Starchenko said: ‘This is a new green energy facility: fuel is not burnt to generate energy; instead, we use secondary resources. As well as bringing our energy costs down by 6%, this project will also improve our environmental footprint.’

Over the last three years, NLMK Group has implemented a number of large investment projects aimed at increasing the energy efficiency of operations and increasing the share of electric energy generated through usage of by-products. Another example is the new 150 MW recovery cogeneration plant installed at the Lipetsk site, which was constructed along with a modern electric air-blowing station installed to meet the needs of blast furnaces 6 and 7. NLMK also built a modern air separation unit that produces 34,000 cubic meters of oxygen per hour.

VIZ-Steel (Yekaterinburg) launched an air separation unit to produce nitrogen, which has a capacity of 8,000 cubic meters per hour.

About Novolipetsk (NLMK’s main production site in Lipetsk)

Novolipetsk is the main production site of NLMK Group, Russia’s leading manufacturer of steel and high value added rolled products, and one of the most efficient steelmaking companies in the world. Novolipetsk is the nucleus of NLMK Group’s single production chain, with assets in Russia, the EU and the USA.

The history of the plant began 80 years ago with the launch of the first blast furnace. Since then, the plant has progressed significantly from a single blast furnace to a global steelmaking company.

Currently, the steel production volume of the Lipetsk site is approximately 18% of all steel produced in Russia, and approximately 80% of all steel products produced by NLMK Group.

Novolipetsk’s high-quality steel products are used in various strategically important industries, from construction and engineering to the manufacture of power-generating equipment and large-diameter pipes.

Novolipetsk produced 12.56 million tonnes in 2014, with capacities running at 100%. Production grew by 1.3% compared to 2013. This record performance was supported by productivity improvements throughout the value chain of the site.

About NLMK Group

NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world. NLMK’s metal products are used in various industries, from construction and engineering to the manufacture of power-generating equipment and offshore wind turbines.

NLMK's production assets are located in Russia, Europe, and the United States. The Company’s liquid steel production capacity is over 17 million tonnes per year, of which about 16 million tonnes are produced in Russia.

NLMK has the most competitive cash cost among global manufacturers; and one of the highest profitability levels in the sector. The company generated $10.4 billion in revenue; $2.4 billion in EBITDA; and a net profit of $845 million in 2014.

NLMK’s ordinary shares are traded on the Moscow Stock Exchange (MICEX-RTS, ticker symbol: NLMK), and its global depositary shares are traded on the London Stock Exchange (ticker symbol: NLMK:LI).