Energy efficiency
NLMK seeks to manufacture products of the required quality at the lowest cost. To this end, it pursues operational efficiency programmes, which include the introduction of energy efficiency technologies in production. One of the Company’s priorities in its commitment to decrease energy expenses in the production cost and to reduce its climate footprint is improving the energy efficiency of production as part of the Strategic Development Cycles.
Results
Key events in 2023:
- A medium-term programme was launched for reliability improvement of core equipment at Altai-Koks’ Co-Generation Plant.
- Newly formed cross-functional teams across NLMK Europe have developed and deployed solutions to reduce consumption of power and natural gas. The largest effect was captured by NLMK Clabecq, where gas consumption by reheating furnaces of the Hot Rolling Shop was decreased 8%. These efforts will continue in 2024.
- NLMK Lipetsk completed construction of the RCGP’s power distribution system. Installation of core and auxiliary equipment continues, including boilers, turbines, gas holders.
- The Company is consistently reducing its fuel consumption and drives technically feasible specific rates of fuel consumption for each transportation category. Timely vehicle repairs, maintenance of fuel systems, reduction of idling and mandatory engine shut-off during parking for over five minutes have enabled a fuel consumption reduction of 319,000 litres in 2023. The efforts to cut motor fuel consumption will continue in 2024 and beyond, focusing on eco-friendly driving techniques, engine cleaning (specialized hydrogen unit), and usage of fuel additives.
- The phased programme to retrofit lighting fixtures continues across the Group’s sites. Around 18,000 lights were replaced with energy-efficient LEDs in 2023.
- In 2023, the total gains from implementing the energy optimization activities within the Power & Utilities Function of the Group amounted to approximately RUB 710 million.
Energy performance of the main production site in Lipetsk:
- 5.35 Gcal/t – purchased energy consumed to produce 1 tonne of steel in 2023.
- 65.5% – captive generation of electric power.
- NLMK Group has completed dozens of large-scale investment projects to advance its energy efficiency. Since 2001, NLMK’s actual specific energy intensity decreased by 20%. Further development of the energy facilities will enable the Company to nearly reach the industry level of best available techniques (BATs), considering the climate zone where it operates.
- Captive generation using secondary gases at NLMK Lipetsk reached 82%. Altai-Koks generates 100% of its energy using secondary gases from coke and chemical operations. In addition to reduced energy and production costs, such initiatives help the Company to minimize its environmental footprint.
- Revamp of air stoves of BF-4 continues. The project aims, among other things, to improve energy efficiency and reduce CO emissions by the stoves. The upgrades are phased through to 2026.
- In September 2023, the off-site utility system of Parus launched a new high-efficiency gas-powered modular boiler. Once trial operation and acceptance procedures are completed, the old fuel-oil boiler will be decommissioned in 2024. The investment project eliminates fuel-oil consumption by Parus’ utilities (down 1,000 tonnes annually for NLMK Lipetsk) and ensures an improved health of the recreational environment in the forest area.
- NLMK Group continues to implement projects to deploy green energy facilities at the Lipetsk site, such as the construction of a power plant for secondary fuel gas recovery with a system to collect and store BOF gas. The commissioning of the plant with installed capacity of 300 MW will boost the site’s electric energy self-sufficiency to 94%. Previously, NLMK Lipetsk commissioned a new Recovery Co-Generation Plant rated at 150 MW and two top-pressure recovery turbine units, which use the excess pressure of blast-furnace gas for energy generation.
- Reducing specific energy consumption of production lines; in the medium term – achieving the minimum technically feasible level of consumption,
- Optimizing the process charts for production of energy resources,
- Driving efficiency of various types of equipment (energy, compressors, pumps, lighting),
- Development and deployment of digital solutions in energy,
- Implementing investment projects for infrastructure development, technical upgrades/construction in core production with improved energy performance.
The company is working on a portfolio of technology development projects in energy. The focus areas in 2024 will be the development of projects for industrial energy storage technologies and analysis of alternative energy technologies.
