27 October ‘21

MMK continues to develop its energy management system

As a result of company’s work, MMK has reduced its steel energy intensity by 9.5%, or 0.63 Gcal/t, in the first 8 months of 2021 compared to 2020.

For MMK, the introduction and operation of its energy management system is one of the effective tools for reducing energy costs. Since 2020, the Company has approved and implemented an Energy Policy. This September, MMK successfully passed the second supervisory examination of the Company's energy management system for compliance with the requirements of the ISO 50001: 2018 international standard and received a certificate from TÜV International Certification (Germany).

Every year the Company develops and implements energy saving and energy efficiency improvement programmes. The effect of their implementation in 8 months of 2021 amounted to RUB 339.2 million. These include organisational and technical measures to save energy and improve energy efficiency approved by MMK’s CEO, which saved RUB 44.2 million; a project to regulate electricity generation and natural gas consumption at CHPs and CPPs during electricity feed-in tariffs (effect of almost RUB 94 million); a project to reduce electricity purchase costs through repairs of power equipment at MMK's block stations at night, at weekends, etc. In addition, the economic effect from the implementation of low-budget, high-impact projects amounted to over RUB 60 million. MMK's innovators have also contributed: in 8 months of 2021, 556 energy-efficient ideas were submitted through the Energy Management Platform, of which 143 projects have been implemented with a planned effect from their implementation amounting to RUB 61.2 million.

Implementation of energy service contracts brought in RUB 23.9 million in the first 8 months of this year. Among the existing energy service contracts are "Automation of the smoke pump controls for the gas utilization system in the oxygen-converter shop" and "Upgrading of the lighting in the PVES production facilities". This year an energy service agreement was signed with LLC GPB-Energoeffect to upgrade the lighting system of six shops of the Chief Power Engineer Department. These include the power shop, oxygen shop, thermal power plant, central heating plant, water supply plant, and central heating and distribution plant (phase III). The project will include replacement of existing low-efficiency lamps with high-pressure discharge lamps and floodlights with modern Russian-made LED lamps (about 3,800 pcs). The expected effect during the term of the contract will be about 50 million kWh, or more than RUB 190 million. Recovery of secondary gases at power plants has also increased since the beginning of the year as compared to 8 months of 2020: blast furnace gas by 36.3 million tonnes of fuel equivalent (Mtoe) and coke oven gas by 6.2 Mtoe. This resulted in a 6% reduction in the use of natural gas in MMK's power plants in the overall fuel mix.

MMK's energy-saving activities are in line with its strategic focus on compliance with the Sustainable Development Goals and principles (ESG). MMK is committed to ensuring that its activities contribute to addressing climate change. "This line of work becomes even more relevant in light of new international environmental requirements and the expected introduction of the so-called 'carbon tax' in our important markets. That is why the Group’s updated strategy provides for reduction of specific CO2 emissions per tonne of steel to the world average level or even lower by 2025", Pavel Shilyaev, General Director of MMK, noted. As previously reported, the Company has set a target to reduce gross carbon dioxide (CO₂) emissions by 2.2 million tonnes by 2025 and specific emissions to 1.8 tonnes CO₂-eq. per tonne of steel (below the world average of 1.82 tonnes CO₂-eq.).

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