November 30, 2021
Severstal, one of the world’s largest vertically integrated
steel and mining companies, has taken a strategic decision to increase the
share of renewable energy in its energy portfolio, in part by increasing heat
generation from biofuels at the operating boiler houses of Karelsky Okatysh,
the leading iron ore mining and processing company in Russia. Karelsky Okatysh
will gradually increase the share of biofuels in the balance of heat production
from 1.2% in 2021 to 13.5% in 2026.
Karelsky Okatysh’s total energy consumption in 2020 was
264,532 Gcal/year. 3,060 Gcal (1.2% of the total consumption) was energy
produced using biofuel, while the rest was generated from fuel oil. At the same
time, Karelsky Okatysh generates heat from biofuel (wood chips) at its own
boiler house. Currently, the use of alternative fuels (natural gas) is not
possible at Karelsky Okatysh due to its remote location and lack of
infrastructure, but the company sees an opportunity to increase the purchase of
high-quality wood chips, including from local suppliers.
Biofuel is any fuel derived from biomass that is grown or
obtained from waste. Severstal makes sure to comply fully with international
sustainability criteria and certifies biofuels in compliance with the ISCC
(International Sustainability and Carbon Certification) requirements. Going
forward, Severstal plans to use only certified biofuels, which ensures that
chips will only be purchased from responsible suppliers. Implementing projects
which use biofuels could lead to a reduction of over 11 thousand tons of
CO2-eq./year.
Alexander Shevelev, CEO of Severstal,
commented:
“Severstal has set itself the goal of reducing its
environmental impact and contributing to global efforts to achieve the Paris
Agreement targets. Our own medium-term goal is to reduce CO2 emissions from
2,063 tonnes / tonne of steel in 2020 to 1,857 tonnes / tonne of steel (or by
10%) in 2030, which will place us in the top 15% of steelmakers with the lowest
greenhouse gas emissions in the world. Our ambitious project to diversify our
own power generation portfolio is an essential part of this programme. It is
important to note that for Severstal this is not just an effort to formally
achieve a goal. It is fundamentally important to us that the alternative energy
sources we use are certified and really contribute to solving climate problems.
With this objective, we urge our supply chain partners to join forces with us,
and we recently announced the development of a climate memorandum “Together for
a low-carbon future” in support of global efforts to prevent further climate
change, which we propose our key suppliers and customers sign”.
