Energy efficiency

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

• Continuous improvement of production processes to reduce consumption of energy;
• Technological modernization, equipment upgrades, use of new technologies;
• Improvement of energy consumption management systems;
• Compliance with laws regulating resource consumption.

NLMK Group companies are implementing measures aimed at achieving these targets by optimizing existing business processes and using advanced technologies. For instance, by using the by-products of steelmaking operations – blast furnace and coke gases – we have been able to achieve 53% self-sufficiency in electricity at our main production site in Lipetsk.

Efforts to improve efficiency allow us to consistently reduce our energy consumption and carbon dioxide emissions. Today, all of the Group’s key production companies are involved in energy efficiency improvement projects.

Results

In 2014, NLMK Group implemented a number of projects to enhance energy resource procurement efficiency. The total effect of these measures was 2.1 billion rubles ($55 million).

NLMK Group also implemented a set of measures to increase the efficiency of energy resource usage and the company’s energy facilities. The total effect of these measures was around 800 million rubles ($20 million).

Key activities on energy efficiency improvement

• upgrade of NLMK Group lighting systems
• optimization of generation equipment repairs to increase in-house energy generation
• use of by-product fuel gases
• reduction of losses through modernization of heat insulation of vapour and hot-water supply networks; among other projects

The certification of Novolipetsk’s energy management system for compliance with the ISO 50001:2011 Energy Management Systems standard in September 2012 confirmed the success of NLMK’s efforts to implement the best available technologies in the areas of energy consumption optimization and the rational use of energy resources. NLMK became the first steelmaking company in Russia to receive a certificate of compliance with the Energy Management Systems international standard.

In 2013, BSI Management Systems CIS conducted an external audit of the company’s energy management system for compliance with ISO 50001. As a result of the audit, Novolipetsk was reissued an ISO 50001 compliance certificate.

In 2014, Altai-Koks, Stoilensky, VIZ-Steel, NSMMZ, and NLMK Metalware passed a certification audit of their energy management systems. BSI (British Standards Institute, England) certification authority confirmed the compliance of these energy management systems with the requirements of ISO 50001 international standard, which means that all NLMK Group's main Russian companies have passed certification for compliance with ISO 50001.