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Energy efficiency

NLMK seeks to manufacture products of the required quality at the lowest cost. To this end, it pursues energy efficiency improvement programmes, introduces energy-saving technologies into core and auxiliary production processes, leverages process digitalization advantages, monitors and deploys innovative technologies.

NLMK has been continuously improving its energy efficiency since 1999. Since 2004, NLMK Lipetsk has implemented more than 44 major investment projects with the total investment amount in excess of RUB 21 billion.

Results

NLMK Group has driven the share of in-house energy generation at the Lipetsk site from 58% in 2018 to 65.5 % by optimizing repairs, monitoring and improving the reliability of shop operations as well as implementing energy-efficiency projects aimed at increasing the output of the Co-Generation Plant (CGP) and Recovery Co-Generation Plant (RCGP).
The power plants of NLMK Lipetsk achieved a historical maximum in consumption of blast furnace gas in 2023.
In September 2023, the off-site utilities 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.
The Cold Rolling & Coating Shop continues construction of the new Continuous Hot-Dip Galvanizing Line No. 5
The set of investment projects to switch core equipment of the Cold Rolling & Coating Shop and the Met Slag Processing Shop from blast furnace and/or BF gas mixtures to natural gas continued in 2023. The unused blast furnace gas is rerouted into power generation.
An all-time record was set in reducing oxygen losses to 2.4% (from 6.8% in 2022). This was enabled by installing new recipients at the Oxygen Distribution Station 2.1 and optimizing ASU and oxygen compressor loads.
34 shops of NLMK Lipetsk have implemented the Targeted LED Lighting Programme. The Targeted Programme reduced electricity consumption for lighting by 6,408,000 kW/h in 2023 alone. It also improved the workplace conditions by eliminating light flickering and phasing out fluorescent lamps.
Another target programme, aimed at ceiling lighting upgrades, continues: the shops of NLMK Lipetsk mounted 17,500 new lighting fixtures. It is due to be completed in 2024.
Revamp of air stoves of Blast Furnace No. 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.
NLMK Lipetsk completed construction of the RCGP’s power distribution system. Installation of core and auxiliary equipment continues, including boilers, turbines, gas holders.
Product supply of blast furnace gas to Co-Gen Plant No. 2 (PJSC Kvadra) was stopped from December 2023, the pipeline was dismantled. That activity was part of a set of measures by NLMK Lipetsk to centralize the utilization of BF gas, including at the newly built RCGP-2.
The following digital services were implemented/commissioned:
- Optimization of heat supply (production and heat recovery outlets and rapid and standard pressure reduction stations),
- Optimization of compressed dry air generation at the dehumidification station of Oxygen Section №2,
- Mode-change optimization of electric feed pumps at the high-pressure unit of the Co-Generation Plant,
- Real-time parameter charts for turbine generators.
New schedules were developed for repair operations and steam valve configuration at BOF Shop No. 2 in order to increase the supply of renewable steam generation and reduce flare losses.
A new renewable steam supply scheme was developed for BOF gas cooling boilers at BOFS-2 for delivery into steam lines.
A new renewable steam supply scheme was developed for BOF gas cooling boilers at BOFS-2 for delivery into steam lines.

Specific energy intensity of steel production at NLMK Lipetsk, Gcal/t of steel

- Starting from 2024, NLMK's energy intensity is calculated according to M 05757665-EN-265-0525-2023 “Methodology for Calculation of Specific Energy Intensity of the Metallurgical Complex for Steel Production and Specific Energy Intensity of Products of NLMK's Main Divisions”. The dynamics of specific energy intensity of steel in 2020-2023 is given in two variants.
- Actual values of energy intensity by year (no normalization).
- Energy intensity improvement since 2001 is 22.5%.

In line with the Energy Management System requirements, the specific energy intensity of steelmaking is set as the key indicator of NLMK Lipetsk’s energy performance. The indicator has demonstrated a sustained downward trend during current strategic cycle, improving the comprehensive energy performance of steelmaking operations (specific energy intensity of steel production relative to the baseline). The actual value of specific energy intensity of smelting decreased year-on-year by 1.8%, from 5.45 to 5.35 Gcal per tonne of steel.

In 2023, the specific cost of energy purchased by NLMK Lipetsk improved, including an increased share of captive generation in the total electricity consumption and of electricity generation from secondary fuel gases.

A systematic approach to energy performance management at NLMK Lipetsk, as well as to management of energy consumption by core and auxiliary steelmaking equipment and efficient interaction contributes to achievement of positive results in the site’s energy efficiency. The company continuously enhances its toolkit aimed at driving energy efficiency goals.