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Energy efficiency

NLMK Lipetsk is committed to making products of the required quality as cost-effectively as possible. To achieve this, the Company is running operational efficiency programmes, integrating energy saving technologies into its main and auxiliary processes, leveraging the advantages of process digitalization, exploring opportunities, and introducing innovations.

NLMK Lipetsk has been continuously improving its energy efficiency since 1999. Starting from 2004, the Company has implemented more than 40 large-scale investment projects with a total investment of more than RUB 14.8 billion.

Results

NLMK Group boosted captive energy generation at NLMK Lipetsk from 58% in 2018 to 63.7% by optimizing repairs and monitoring and improving the equipment reliability in the Co-generation Plant (CGP) and Recovery Co-generation Plant (RCGP) Shops.
In 2019, the NLMK Lipetsk Hot Rolling Shop implemented an investment project for the overhaul of Reheating Furnace No. 2. As of the end of 2020, the unit’s specific consumption of equivalent fuel was reduced by 47%.
In 2020 the NLMK Lipetsk CGP completed an investment project to replace the regenerative air heater (RRAH) at Boiler No. 12. Annual gains from increasing the efficiency of Boiler No. 12 by replacing the RRAH are estimated at RUB 54 million, which is 1.8 times more than the planned gains.
Construction of Basic Oxygen Furnace No. 3 was completed at BOF Shop No. 2 at the Lipetsk site. The technical solutions used in the equipment of BOF No. 3 will enable the collection and recycling of BOF gas at the RCGP No. 2, which is currently under construction.
The fourth recovery CGP power unit was launched, with a steam turbocharger for the air blast supply at Blast Furnace No. 7.
К-1500 and К-500 compressors in the NLMK Lipetsk Oxygen shop were upgraded.
A daily-average record was set in energy generation at NLMK Lipetsk captive facilities (co-generation plant – 346.5 MW, recovery plant – 160.1 MW).
NLMK Lipetsk halved its purchases of hot water heat energy by optimizing its power resource supply arrangements.
In 2020, 85 energy efficiency projects were implemented at NLMK Lipetsk as part of the energy efficiency improvement part of the Optimization Programme.
NLMK Lipetsk’s 2020 gains from the Optimization Programme totalled approximately RUB 650 million.
Supplies of medical oxygen from NLMK Lipetsk to clinics and hospitals in nearby regions reached record highs amid the COVID-19 pandemic.

In 2020 NLMK Lipetsk, the Group’s main production site, demonstrated a steady positive trend in energy efficiency indicators: specific consumption of purchased energy resources, specific energy intensity, share of captive energy in the site’s total consumption.

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

^*2020 energy intensity recalculated for 2018 output conditions (in 2020 steel output went down by 7.8% (vs. 2018) due to capital repairs at BF-4, resulting in lower secondary metallurgical gas emissions.

^**Since 2008 energy intensity decreased by 18.8% (with 2019-2020 figures normalized).

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 method used to analyse this and other energy performance indicators is normalization (applying the same production conditions for comparison purposes), which is in line with the international ISO 50001:2018 standard.

Compared to last year, the actual and normalized levels of specific energy intensity of steelmaking demonstrate a positive trend: actual levels went from 5.64 to 5.55, and normalized levels – from 5.42 to 5.38 Gcal per tonne of produced steel.

A systematic approach to managing the energy facilities, the consumption rates of main and auxiliary steelmaking equipment, and swift equipment interaction contributes to more efficient energy use at NLMK Lipetsk.

The company continuously improves its energy efficiency levers, from ideation to the implementation of optimization projects.

It has implemented a simplified scheme for allocating funds to high-efficiency optimization projects, which is now fully functional as part of the Company’s Optimization Programme.

NLMK Group was ranked third in the Top 20 Energy Efficient Companies annual ranking, compiled by Expert RA based on performance data for 600 leading Russian companies.

NLMK Lipetsk won the Environmental Activity and Resource Saving category in the 16th High Social Performance Metals & Mining Companies competition.

The 2020 project to boost the energy efficiency of lighting at NLMK’s NGOES Shop won the Golden Photon Award in the international electrotechnical industry competition of the Eurasian Economic Community.