Energy Efficiency
Reduction of power consumption is a tangible contribution of Severstal to the rational use and conservation of energy resources.
2020 Highlights
In 2020 we saved 6.1% of energy costs compared to 2019 (excluding the use of natural gas in the process fuel used in hot metal production). Cherepovets Steel Mill made the biggest contribution in this result.
Power generation and consumption by Cherepovets Steel Mill, thousand kWh, GRI 302-1
| Year | 2016 | 2017 | 2018 | 2019 | 2020 |
|---|---|---|---|---|---|
| Total consumption | 6 077 806 | 6 096 821 | 6 280 738 | 6 274 316 | 6 199 626 |
| External sources | 1 686 531 | 1 655 118 | 1 714 917 | 1 884 579 | 1 530 575 |
| Internal production | 4 391 275 | 4 441 703 | 4 565 820 | 4 389 735 | 4 669 047 |
| TPP-SS | 2 602 942 | 2 623 499 | 2 661 744 | 2 494 701 | 2 730 751 |
| TPP-PS | 1 456 400 | 1 509 456 | 1 616 004 | 1 598 709 | 1 672 103 |
| GNCT | 199 477 | 191 765 | 158 274 | 166 399 | 141 827 |
| TSC | 132 455 | 116 983 | 129 798 | 129 926 | 124 367 |
| Use in shops | 5 574 273 | 5 610 497 | 5 809 378 | 5 795 592 | 5 719 739 |
| Process consumption | 5 641 968 | 5 666 700 | 5 860 781 | 5 844 529 | 5 771 657 |
| Losses | 67 695 | 56 203 | 51 403 | 48 937 | 51 918 |
| Sales to third parties | 432 650 | 426 542 | 416 376 | 426 074 | 424 560 |
| Non-process consumption | 3 188 | 3 579 | 3 582 | 3 713 | 3 409 |
In 2020 we saved 6.1% on energy costs compared to 2019 (excluding the use of natural gas in the process fuel used in hot metal production). Cherepovets industrial site made the biggest contribution in this result.
Fue mix at Cherepovets Steel Mill, %
Specific power consumption
kWh per tonne of steel
Internal generation
Grid electricity
Natural gas consumption, GRI 302-3
cubic meters per tonne of steel
Power consumption at other key businesses of Severstal, thousand kWh GRI 302-1
| Business | 2016 | 2017 | 2018 | 2019 | 2020 |
|---|---|---|---|---|---|
| Olcon | 388 630 | 391 975 | 426 555 | 446 915 | 458 901 |
| Karelsky Okatysh | 1 592 631 | 1 626 482 | 1 604 139 | 1 584 548 | 1 583 107 |
| Severstal Metiz | 155 157 | 152 509 | 160 117 | 149 891 | 157 571 |
| Severstal Steel Ropes, Volgograd Branch | 32 914 | 35 181 | 37 287 | 36 131 | 36 924 |
| OSPAZ | 46 463 | 46 323 | 44 907 | 41 058 | 39 392 |
| Yakovevskiy Mine | 35 678 | 40 123 | 45 427 | 50 472 | 99 100 |
| Izhora Pipe Mill | 57 602 | 61 062 | 58 605 | 51 096 | 36 089 |
| Vorkutaugol | 536 799 | 519 410 | 533 477 | 533 693 | 546 990 |
2020 Key Initiatives
As a part of our large-scale energy conservation investment programme, Cherepovets Steel Mill deployed a machine learning model to automate the operation of air compressors.
The software redistributes the performance of individual compressors so that the total amount of compressed air stays the same while the overall consumption goes down. Our innovations resulted in the average 2 kWh per thousand cubic metres reduction in specific power consumption.
Vorkutaugol does not have its own power generation and is a single consumer on the wholesale electricity market. It rolled out a data collection system connected to 2.5 thousand units of metering equipment. Predictive analysis with machine learning helps us improve energy consumption forecasting (by 20-25% monthly), minimize our losses due to inaccurate forecasts, and eliminate unauthorized connections to power grids and electricity theft. We are saving up to $10 million per year.