Annual Report & Accounts 2015

Energy-saving measures

In 2015, the Group conducted work at its enterprises aimed at increasing energy efficiency, generating more own electricity and reducing the share of energy resources bought. Initiatives to optimise the use of light, heat, fuel, compressed gas and it’s separation products products generate significant savings.

Steel segment

Steelmaking

EVRAZ ZSMK

In 2015, EVRAZ ZSMK installed an energy management system and took measures to reduce fuel and energy costs.

Energy-saving programme at EVRAZ ZSMK saves RUB229 million in 2015

Energy-savin programme

Over 2015, EVRAZ ZSMK installed an energy management system and introduced measures to reduce fuel and energy spending. As a result, it became more energy-efficient, reducing the volume of energy consumed on saleable products by 4.3% year-on-year. The improvements followed the introduction of automated systems for measuring energy use. They allow electricity use to be controlled at various stages of production, optimise the work of high-power equipment and reduce per-unit spending on energy resources.

Overall, in 2015, EVRAZ ZSMK reduced its purchases of electricity from third parties by almost 17% by increasing generation at the ZSMK Heat and Power Plant and decreasing electricity consumption.

Over the year, through efforts to increase generation at the ZSMK Heat and Power Plant and decrease electricity consumption, EVRAZ ZSMK reduced its electricity purchases by 17% and energy consumption on saleable products by 4.3%. In addition, it boosted the volume of own electricity generated by 5%.

EVRAZ NTMK

In 2015, EVRAZ NTMK has modernised its lighting system and introduced measures to increase own power generation, including by optimising the use of associated metallurgical gases from blast furnaces and coking facilities, and to upgrade the water supply system.

One priority project in 2015 was the launch of two new air separation units to supply oxygen, nitrogen and argon to the enterprise’s blast furnaces and coking facilities. The units are 35% more efficient than their predecessors. A US company Praxair is operating them.

In 2015, EVRAZ NTMK’s heat and power plant set a new record for electricity generated of 158 MWh, up 12% year-on-year. In addition, a project to modernise the coke dry quenching unit continues and the second phase is under way. As part of this, equipment will be installed to collect surplus gas and generate power from it.

EVRAZ DMZ

In 2015, EVRAZ DMZ undertook numerous initiatives to reduce spending on energy purchases and maximise its consumption of associated gases (from blast furnaces and coking facilities).

During repairs to a coke gas pipeline, EVRAZ DMZ reversed gas transmissions from its coke production site through the blast furnace gas pipeline, saving 5 million cubic metres of natural gas consumption in steelmaking.The enterprise also worked to decrease its electricity consumption by installing frequency changers and energy-efficient lighting, reducing its electricity purchases by 0.3 million kWh in 2015. In addition, over the year, it increased own electricity generation by 0.7 million kWh.

EVRAZ Bagleykoks

In 2015, EVRAZ Bagleykoks upgraded its gas pumping equipment, pumps and heat-exchange units and replaced old aggregators with more modern, efficient ones. As a result, it reduced its consumption of steam and electricity and made its production process more stable.

Mining

KGOK

In 2015, EVRAZ KGOK implemented three energy-saving measures. It reduced the size of the ore lumps used as feedstock and increased the yields from dense media separation tails. It installed commercial flow meters to measure natural gas consumption in its pellet plant and added extra thermal insulation to reduce energy consumption. It also switched electricity tariff to reduce spending on power.

Evrazruda

In 2015, Evrazruda installed energy-saving devices (fluorescence excitation illumination systems) and commercial heat-measuring gauges; fitted frequency changers to the lifting machinery at the Sheregesh mine to reduce electricity consumption; and switched to a more optimal electricity tariff.

VRAZ Sukha Balka

In 2015, EVRAZ Sukha Balka completed the switch to a three-zone approach to recording its electricity use, reducing its purchases of power. In addition, it optimised the schedule for tunnelling and drilling work, saving around 10 million kWh of electricity.

Energy consumption of Steel segmentTaking into account performance of EVRAZ ZSMK, EVRAZ NTMK, EVRAZ DMZ, GJ per tonne
Energy consumption of Steel segment

Steel, North America Segment

EVRAZ North America

EVRAZ North America’s enterprises also continued to implement energy-saving measures in 2015. By upgrading to LED lighting, they saved c. 1.5 million kWh of electrical energy compared with 2014. For 2015, the business unit’s EINA electrical and natural gas consumption are both estimated to have fallen year-on-year (from 1,683 GWh to 1,623 GWh and from 9,129 TJ to 9,120 TJ, respectively).

Coal segment

Yuzhkuzbassugol

In 2015, Yuzhkuzbassugol fitted frequency changers to the lifting machinery at the Osinnikovskaya mine, reducing electricity consumption by 20%.

Raspadskaya

In 2015, Raspadskaya implemented a range of major energy-saving measures. In particular, it decommissioned energy-inefficient equipment, began to focus more on optimising equipment work schedules, upgraded the water supply system and modernised its lighting equipment.

Energy production/consumption ratioTaking into account performance of Steel segment and Coal segment operations., %
2013 2014 2015
Electrical energy 40.71 37.65 41.32
Hot water for heating 204.76 201.96 210.10
Steam 102.72 112.65 113.89