• Energy efficiency

Energy efficiency

NLMK strives to make products of the required quality at the least possible costs. Increase in energy efficiency is a part of the Group's strategic development plan, playing an important role in the Company's effort to reduce production cost.


Key elements of the Company’s energy efficiency strategy include:

  • Continuous monitoring of energy consumption and generation, ensuring rational use of energy resources throughout the entire production chain
  • Maximizing use of by-products of steelmaking operations, namely, blast furnace and coke gases, reduction of gas losses
  • Introducing energy-efficient processes, equipment, materials and engineering, benchmarking against best available technologies
  • Enhancement of energy resource procurement efficiency
  • Optimization projects aimed at increase of process energy efficiency, including auxiliary processes
  • Systematic approach to analysis of data, benchmark-based identification of energy efficiency increase potential, compliance with provisions of the law and other requirements

57.4% - Novolipetsk energy self-sufficiency

Results

In 2015, NLMK Group implemented a number of projects to enhance energy efficiency. The projects delivered the following gains:

    • Over RUB 170 million of savings from the increase of captive electrical energy generation at Novolipetsk
    • Over RUB 148 million of savings from the increase of by-product-fired power generation share in the fuel mix at Novolipetsk
    • Over RUB 80 million of savings from the low-cost energy efficiency project across all Group's plants (over 200 production sites)
    • Total savings from enhancement of energy resource procurement across Group's plants exceeded RUB 380 million.

    5.66Gcal/t - energy consumption per tonne of steel at Novolipetsk in 2015

    ENERGY-EFFICIENT PRODUCTION

    • Since 1999, NLMK Group completed dozens of large-scale capex project to boost energy efficiency. During this period, NLMK Group reduced its specific energy intensity which is now very close to the best available technology levels.
    • Since 2008 till present, the total gain from initiatives on energy efficiency increase across NLMK Group's plants exceeds RUB 1 billion. The low-cost energy efficiency initiatives at Novolipetsk completed in 2001-2007 allowed the accumulated gain of RUB 2.6 billion.
    • The volume of electrical energy generated by plants run mainly on by-product gases from coke and blast furnace operations has increased by 3.5 times. This, among other things, makes the Lipetsk site 54% self-sufficient in electrical energy. In addition to reduced energy and production cost, such initiatives help the Company to minimize its environmental footprint.
    • Use of by-products from operations is NLMK Group's primary strategic focus in energy resource management. For example, NLMK Group continues implementation of green energy projects at Novolipetsk. The Company is building top-pressure recovery turbine plants that generate energy from the blast furnace gas escaping at high pressure. Earlier, Novolipetsk commissioned a new recovery cogeneration plant with installed capacity of 150 MW.

    KEY ENERGY EFFICIENCY PROJECTS

    • Upgrade of lighting systems at NLMK Group companies
    • Optimization of generating facilities repair and maintenance to increase captive electrical energy generation and boost recovery of by-product gases
    • Upgrade of steam and hot water pipeline covering to reduce heat losses, etc.

    Energy efficiency cases

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NLMK Group Energy Policy

02 June 2014

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