NLMK Group recognized as an energy efficiency leader in Russia
NLMK Group, an international steelmaker, was ranked third in the Top 20 Energy Efficient Companies annual ranking, compiled by Expert RA based on performance data for 600 leading Russian companies.
Sergey Chebotarev, NLMK Group Vice President for Energy, said:
“Steelmaking is an energy-intensive industry, where expenditure on energy in integrated companies reaches 10-12% of production costs. This drives us to systematically improve the energy efficiency of our facilities. We have made steelmaking processes less energy-intensive. We are also using secondary energy resources, including by-product gases, in heat and power generation. BAT solutions aimed at optimizing energy consumption, reduction of costs and rational use of resources boost efficiency along the entire production chain.”
Specific energy intensity of steel production at NLMK Lipetsk has decreased by 23% since 2000, down to 5.47 Gcal per tonne of steel at the end of 2018.
NLMK Group has invested over RUB 25 bn in several dozen large-scale energy efficiency projects since 2000. One particular outcome of such projects was to enable recovery of secondary fuel gases for in-house steam and power generation – the share of secondary energy sources is now 82%.
Optimized turbine generator repair time and improved cooling system operation resulted in a higher share of in-house generation at NLMK Lipetsk, up from 30% in 2000 to 58% in 2018. Over the same period, in-house power generation from by-product gases increased almost 2.5-fold, to 357 MW.
A project is currently underway at NLMK Lipetsk to build a new Recovery Cogeneration Plant. The new plant will be mostly powered by by-product gases from steelmaking operations. This will unlock further efficiencies in utilizing secondary resources, reduce the environmental footprint and energy costs, and increase NLMK Lipetsk energy self-sufficiency to 95%.
About NLMK Group
NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world.
NLMK Group’s steel products are used in various industries, from construction and machine building to the manufacturing of power-generation equipment and offshore wind turbines.
NLMK operates production facilities in Russia, Europe and the United States. The Company’s steel production capacity exceeds 17 million tonnes per year.
NLMK has a highly competitive cash cost among global manufacturers and one of the highest profitability levels in the industry. In 12M 2018, the Company generated $12 billion in revenue and $3.6 billion in EBITDA. Net debt/EBITDA stood at 0.25х. The Company has investment grade credit ratings from S&P, Moody’s, Fitch and RAEX (Expert RA).
NLMK’s ordinary shares with a 18.6% free-float are traded on the Moscow Stock Exchange (ticker "NLMK") and its global depositary shares are traded on the London Stock Exchange (ticker "NLMK:LI"). The share capital of the Company is divided into 5,993,227,240 shares with a par value of RUB1. For more details on NLMK shareholder capital please follow the link.
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