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
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
- 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.
- 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.