October 22, 2019

Cherepovets Steel Mill reduces energy consumption levels

Cherepovets Steel Mill, one of the largest steel plants in the world (part of the Russian Steel division of PAO Severstal), reduced its overall consumption of almost all energy sources per product ton in the first nine months of 2019, compared to the same period of 2018. This resulted in a total cost saving of 156 million rubles.

This was achieved by reducing electricity, fuel and oxygen consumption. Total electricity consumption fell by 17.6 million kWh, fuel by 12.5 thousand tons, and oxygen by 19.7 million m3. Severstal Russian Steel’s energy consumption intensity for 9M 2019 was 5.762 Gcal per ton of liquid steel.

As at 9M 2019, total electricity generated in-house amounted to 3212.2 million kWh, making the mill 72.7% self-sufficient in electricity. During the first half of this year, Cherepovets Steel Mill carried out reconstruction works at Turbogenerator No. 5 at TPP-SS (Thermal Power Plant & Steam Blowing Station). The updated unit is now fully operational and has already achieved record daily electricity generation levels – 13,838.9 thousand kWh.

Vadim Germanov, CEO of Severstal Russian Steel, commented: “We have successfully reduced the unit costs of our energy resources through implementing investment measures and exercising operational control over our energy consumption. In particular, I would like to highlight that the processes of coke-agglomeration, steelmaking and rolling production all demonstrated high levels of energy efficiency. Within Severstal’s strategic priority to achieve “Cost Leadership”, we plan to increase the share of electricity generated in-house to 95% of total consumption by 2025. We will generate new energy through utilizing secondary energy sources - coke, blast furnace and converter gases.”