Energy efficiency

NLMK strives to manufacture products of the required quality at the lowest possible cost. To achieve this, we are implementing programmes aimed at improving the efficiency of production, including the integration of energy-saving technologies into production processes.


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.

53% - Novolipetsk energy self-sufficiency

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).

5,72 Gcal/t - energy consumption per tonne of steel at Novolipetsk in 2014

NLMK Group’s target energy efficiency level is equal to the level of best available technologies (BAT). Specific energy intensity of steel produced at the Lipetsk site increased by 1% year-on-year in 2014 driven by one-off factors related to the mastering of pulverized fuel injection technology at blast furnaces #4 and #5.

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.

Energy efficient production

NLMK Group has carried out dozens of capital projects to improve energy efficiency since 1999, reducing per unit energy use by 20%, which is very close to the best available technology levels.

Own power generation from by-product gas increased by 3.5 times, and the Lipetsk site is now able to meet 54% of its demand for electricity. This helps achieve energy and production cost savings and reduce the environmental impact.

Using by-products to generate power is a flagship strategic priority for NLMK Group. NLMK is running a green energy project at the Lipetsk site involving the construction of a top gas recovery turbine which uses high pressure blast furnace gas. A new 150 MW recovery cogeneration plant fired by blast furnace gas has already been put into operation at the site.

Energy intensity of NLMK Group production (Gcal per tonne of steel) (amount of energy consumed less in-house generation per unit of output)