NLMK Group and Lipetsk Region sign memorandum to build new waste energy recovery power plant
NLMK Group, a global steel company, and the Administration of the Lipetsk Region have signed a memorandum of intent to build a new recovery power plant at NLMK Lipetsk, running on by-product gases from hot-end operations. The project will enable a reduction in carbon oxide (CO) emissions by 3,000 tonnes per year and a decrease in greenhouse gas emissions (CO2) by 650,000 tonnes per year.
The power plant will have a capacity of 300 MW. By-product gases generated during hot metal and steel smelting will be used as fuel for heat and electricity generation.
NLMK Group’s investment in the project will total RUB 35 bn, while the Lipetsk Region Administration will provide tax relief for project property.
Grigory Fedorishin, NLMK Group President and CEO, and Igor Artamonov, Acting Head of the Lipetsk Region Administration, signed the memorandum.
Grigory Fedorishin, NLMK Group President and CEO, said:
“The memorandum is a testament to NLMK Group’s long-term commitment to developing production while improving its environmental performance through the introduction of the best available technologies. The new power plant will increase NLMK’s self-sufficiency in energy from 60% to 95%, while reducing its environmental footprint. By-product gases from steelmaking operations will be used to generate heat and electricity, a unique solution for the Russian steel industry.”
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 the most 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 16% 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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