Energy efficiency
NLMK Group seeks to manufacture products of the required quality at the lowest cost. To this end, it pursues operational efficiency programmes, which include the introduction of energy efficiency technologies in production. One of the Company’s priorities in its commitment to decrease energy expenses in production cost and to reduce its climate footprint is to improve the energy efficiency of production as part of the Strategic Development Cycles.
Results
Key events in 2024:
- In 2025, NLMK Lipetsk replaced Steam Compressor No. 6 in the Oxygen Shop to ensure a reliable supply of compressed air to the air separation units and Blast Furnace Shop No. 1. The new unit is one of the most energy-efficient steam compressors in the Company’s fleet. It reduces steam consumption by 20% while producing the same volume of compressed air.
- NLMK Lipetsk’s Oxygen Shop completed construction of Air Separation Plant 20. The new facility ensures a stable supply of oxygen and process gases required to produce hot metal and steel. The advanced ASP-20 will replace several outdated units, reducing the cost of air separation products, improving product quality, and ensuring high safety standards.
- At NLMK Lipetsk’s Hot Rolling Shop, Reheating Furnace No. 1 was commissioned. The new furnace features lower energy consumption and improved environmental performance. This commissioning completes a portfolio of projects to upgrade the reheating furnaces of Mill 2000.
- The implementation of a mid-term programme to boost Altai-Koks CGP reliability is ongoing, with the completion of overhauls on Boiler No. 1 and Turbine Generator No. 3.
- In 2026, the Group will continue its efforts to reduce engine fuel consumption through the use of vehicles powered by alternative energy sources, adoption of eco-driving practices (fuel savings of up to 10%), application of fuel additives (fuel savings of up to 5%), and equipping locomotives with electronic fuel injection systems.
- In 2025, NLMK Group implemented a number of optimization projects to address the following targets:
- Increasing the efficiency of fuel gas utilization in electricity generation
- Improving the efficiency of compressor, pumping, and cooling equipment
- Optimizing process charts for the production of energy resources
- Installing frequency control on electric motors (more than 250 kW)
- Optimizing energy equipment operation modes with the use of digital solutions
- Structural gain in 2025 from NLMK Group’s measures to improve energy efficiency amounts to RUB 540 million.
Energy performance of the main production site in Lipetsk in 2025:
- 5.06 Gcal/t — specific energy intensity per tonne of steel
- 55% — captive generation of electric power
- NLMK Group has completed dozens of large-scale investment projects to advance its energy efficiency. Since 2001, NLMK’s actual specific energy intensity decreased by 1/4. Further development of the energy facilities will enable the Company to nearly reach the industry level of best available techniques (BATs), considering the climate zone where it operates..
- 89% of the electricity generated at NLMK Lipetsk and used for its production needs only, and 100% of the electricity generated at Altai-Koks is produced using NLMK Group’s captive recyclable fuel gases. In addition to reduced energy and production costs, such initiatives help the Company minimize its environmental footprint.
- Steelmaking Operations implemented a project to install variable frequency drives on high-power electric motors, resulting in a reduction in specific electricity consumption.
- In the CGP Shop, internal gas pipelines were reconstructed to improve reliability and increase the use of secondary fuel by CGP boilers.
- In the Sludge Treatment Shop, the drying drums of Sludge Disposal Area No. 2 were converted from blast furnace to natural gas, allowing for the effective use of secondary fuel to generate captive electricity.
- In the Refractory Shop, Rotary Furnace No. 9 was upgraded with a new burner, enabling a reduction in specific natural gas consumption for lime production.
- Achievement of the minimum technically feasible power consumption in production,/li>
- Optimizing the process charts for production of energy resources,,
- Driving efficiency of various types of equipment (energy, compressors, pumps, lighting),
- Deployment of digital solutions in energy,
- Implementing investment projects for infrastructure development, technical upgrades/construction in core production with improved energy performance.
The company is working on a portfolio of technology development projects in energy. The focus areas in 2026 will be the development of projects for industrial energy storage technologies and analysis of alternative energy technologies.
