MMK continues to improve energy efficiency
Magnitogorsk Iron and Steel Works (MMK) continues its comprehensive efforts to improve its energy management system and increase the energy efficiency of all its production processes. These efforts saved MMK hundreds of millions of roubles in 2023.
The Company’s energy management system (EMS) is one of its most effective tools when it comes to reducing energy consumption. In 2023, MMK became one of the first companies in Russia to certify its EMS according to the latest version of the national standard. Following an audit, the certification body, Rostekhsert, reported that MMK’s EMS is an effective system that is fully compliant with the requirements of the GOST R ISO 50001-2023 national standard.
The most important activities involved in improving the energy efficiency of MMK Group’s production processes include the development and realisation of energy-efficiency ideas, the implementation of low-budget, high-performance projects (baby capex) for energy conservation, as well as the provision of energy performance services. In 2023, employees submitted 925 energy-efficiency ideas through the Company’s Energy Management Platform (EMP) app, of which 303 were implemented. These projects are expected to result in savings of RUB 78.8 million. In addition, five baby capex projects were carried out, with expected savings of RUB 61.4 million.
The Company continued to fulfil its contractual obligations regarding the provision of energy performance services as part of projects for upgrading the lighting systems in the shops of the Power Management Department and in process shops, resulting in total savings of RUB 193.9 million.
Another tool for improving energy efficiency involves projects to reduce the cost of purchased electricity by regulating the volume of electricity generated by the Company’s own power plants, repairing the plants’ power-generating equipment during the hours when the cost of electricity is lowest, and reducing electricity consumption in business divisions during the hours when the cost of electricity is highest. These measures have saved the Company a total of RUB 337.8 million.
In 2023, MMK continued to develop a chatbot for Telegram that can be used to report losses of fuel and energy resources. The bot was created in order to involve MMK Group personnel in identifying and submitting information about inefficiencies in the use of fuel and energy resources (leaks, discharges, water surfacing, the formation of ice on pipelines, etc.) to MMK’s Centre for Energy-Saving Technologies. In parallel, in June 2023, MMK launched a function in its Energy Management Platform app that enables employees to submit information about leaks through the EMP. In 2023, 146 cases of the inefficient use of fuel and energy resources were identified through the chatbot. The elimination of the identified inefficiencies resulted in savings of over RUB 1.1 million.
Reducing greenhouse gas emissions is one of MMK Group’s priorities when it comes to improving its energy efficiency and modernising its production processes. In response to a directive on energy conservation and energy efficiency from its CEO, the Company has started to carry out quantitative assessments of the reduction in greenhouse gas emissions resulting from the implementation of energy-saving measures. In 2023, these measures resulted in a year-on-year reduction in CO2 emissions of 14,785.9 tonnes.
"All the Group’s modernisation projects comply with the requirements of the best available technologies and are aimed at improving the efficiency of production processes, including energy efficiency, which not only provides a significant economic benefit but is also of considerable environmental importance,” said Pavel Shilyaev, MMK’s CEO.