April 1, 2021
PAO Severstal, one of the world’s leading vertically integrated steel and
mining companies, has completed the development of a detailed energy efficiency
strategy which will help the Company to increase its own energy generation and
reduce Scope 2 emissions.
Reducing Severstal’s overall consumption of natural gas, gas flaring and the
purchase of third-party electricity is part of Severstal’s strategy to meet its
GHG reduction targets announced in July 2020. The measures set out under
Cherepovets Steel Mill’s energy efficiency strategy are designed to increase
Severstal’s consumption of internally produced electricity, thereby increasing
energy efficiency and reducing purchases of electricity from external sources.
These measures will enable Cherepovets Steel Mill to obtain 95% of its
electricity consumption from Severstal’s own sources by 2023. Progress has
already been made: at the end of 2020, the Mill’s internal electricity
consumption increased to 80.9% compared to 78% in 2019. Cherepovets Steel Mill
consumes 5.9 billion kWh of electricity per year. Following the implementation
of the investment programme at Cherepovets Steel Mill, the Company expects to
increase its utilization of secondary gases for electricity production by more
than 20%.
The Cherepovets Steel Mill investment plan is at various stages of
implementation. A number of measures aimed at optimizing energy consumption,
particularly in Cherepovets Steel Mill’s pumping and compressor facilities,
will also aim to reduce emissions intensity. These projects are part of a
larger programme of retrofitting at the Cherepovets Steel Mill power plant. In
addition, the power plant will increase annual electricity generation to 5,486
million kW by utilising industrial gases which are by-products from Severstal’s
coke and blast furnaces. This is aligned to the Company’s longer-term strategy
to utilize secondary energy resources for additional power generation.
Alexander Shevelev, CEO of Severstal, commented:
“Cherepovets Steel Mill has developed a strategy which will enable
production to increase without purchasing additional electricity, while
concurrently allowing us to achieve our environmental targets. This will bring
economic and environmental benefits – reaching 95 percent internal electricity
consumption will result in 2.7 billion rubles of cost savings per year and
greenhouse gas emissions will be reduced by more than 270 thousand tons of CO2
per year. Moreover, by achieving the Company’s near term goal of 3% emissions
intensity reduction we will reduce our pollutant emissions by up to 12,000 tons
per year. Our focus on increasing electricity generation from secondary
resources is aligned UN Sustainable Development Goals 7 and 12: “affordable and
clean energy”, “responsible consumption and production”.
Notes to editors:
In 2020 and 2021, Cherepovets Steel Mill produced its first products at the
new units – blast furnace No. 3 and the first unit of the coke oven battery
complex No. 11. In the near future, arc steelmaking furnace No. 1 will also be
put into operation. Additional production capacity naturally requires an
increase in electricity consumption, but the company’s energy efficiency
strategy will help to meet increased demand, and the energy required for the
operation of new steel production units is planned to be provided by the
utilization of secondary energy resources.
Severstal’s climate change targets
By 2023, to reduce GHG emissions intensity by 3% compared with 2020
By 2025, to reduce total atmospheric emission of pollutants by 13%
https://www.severstal.com/eng/media/news/document46144.phtml
