02 August ‘22

MMK Receives International Award in Energy Management

PJSC Magnitogorsk Iron & Steel Works (MMK) has received an international Energy Management Insight Award for energy conservation and improving energy efficiency in its production in accordance with the ISO 50001 standard.

The award recognises MMK for its leadership in energy management and for raising global awareness of the benefits of certification to ISO 50001 energy management standards.

Tareq Emtairah, Director of the Energy Department at the United Nations Industrial Development Organisation (UNIDO), addressed a congratulatory letter to the Company, thanking it for providing a high-quality case study for the 2021 Energy Management Leadership Awards programme. He noted: “An independent panel of international experts concluded that your case shows how an energy management system can be successfully integrated into existing business systems to better manage resources, maintain the savings achieved and continuously improve energy efficiency.”

MMK CEO Pavel Shilyaev, commenting on the award, said: “The recognition of our energy management work and efforts to improve energy efficiency at the international level confirms that MMK is taking important steps in the right direction, and that we meet the highest global standards in this field. This, in turn, is important not only for our economic and production performance, but also for Magnitogorsk’s residents and environment. By improving MMK’s energy efficiency, we aim to reduce our environmental impact and to make our products more attractive to consumers.”

The introduction and operation of an energy management system is an effective means for MMK to reduce its energy costs. In 2020, the Company approved and implemented an Energy Policy, while in September 2021, the plant successfully passed the second supervisory examination for compliance with the ISO 50001:2018 standard, receiving TÜV International Certification (Germany).

The most important areas for improving energy efficiency in MMK Group’s production processes include developing and implementing appropriate rationalisation proposals, quickly implementing low-budget and high-efficiency energy saving projects, and fulfilling energy service agreements.

As result of the Company’s systematic efforts to develop its energy management system, MMK’s net energy consumption per tonne of steel decreased by 5.6% in 2021 compared to the previous year, while in-house energy production at the Company’s power plants increased by 2% (11.7 MWh) over the same period. In addition, the recycling of waste gas from blast furnaces grew by 350 million m3 (5%), and from coke plants by 4 million m3 (1%). This reduced the use of natural gas at the Company’s power plants by 1.1% of MMK’s total fuel balance.

Asides from its economic benefits, the Company’s systematic work to improve energy saving and energy efficiency has an important environmental impact by reducing greenhouse gas and pollutant emissions. MMK plans to reduce CO2-equivalent emissions by 1.8 tonnes per tonne of steel by 2025, which is below the world average as calculated by the World Steel Association (worldsteel). 

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