Conceptual Approaches to Energy Saving in Metinvest Group

Transcription

1 Metinvest Group Conceptual Approaches to Energy Saving in Metinvest Group Speakers: IGOR KIRILYUK Director of Corporate Communications VLADISLAV BELOUS Acting Head of Environmental Department

2 METINVEST TODAY Metinvest today Strategic vision 2020 Realities of Ukrainian mining and metals 2012 Strategic energy efficiency goal 2020 Results 2011 Energy efficiency: overall result Improving energy efficiency across Metinvest Group Approaches to systemwide management and international initiatives 2

3 METINVEST TODAY USA UCC UKRAINE KHTZ YeMZ Metinvest SMC KIEV Metinvest Ukraine EUROPE Donetsk RUSSIA Metinvest Eurasia United Kingdom Spartan UK InGOK AKHZ SWITZERLAND UKRAINE SevGOK CGOK Metinvest International ITALY Ferierra Valsider Metinvest Trametal BULGARIA Promet Steel Steel plants/companies Rolling mills Producers of iron ore raw materials Coke producers Coal producing companies Fluxing limestone producers Azovstal Steel Plant Ilyich Plant Komsomolskoye Ore Mining Krasnodonugol 3

4 STRATEGIC VISION 2020 OUR STRATEGIC VISION OUR STRATEGIC GOALS Metinvest is determined to become the leading integrated steel producer in Europe that shows sustainable growth and profit irrespective of economic cycles and offer higher return on investments than the industry average 1. Ensure a sustainable competitive advantage in steel production Reach the efficiency level of the world's leading steel producers 2. Strengthen positions in strategic markets 3. Get in line with the best practices in doing business METINVEST HOLDING, LLC All Rights Reserved 4

5 ENERGY EFFICIENCY: OVERALL RESULT METINVEST HOLDING, LLC All Rights Reserved 5

6 Increased product yield is associated with higher energy consumption The energy intensity of Ukraine's rolled steel exceeds twice the similar indicator for steel products in the developed countries Energy costs of steel mills with full production cycle reach 45% in Ukraine, while energy costs of EU's steel plants are ( %). REALITIES OF UKRAINIAN MINING AND METALS 2012 Water 1% Other 20% The energy cost breakdown structure Thermal coal 2% Coking coal 64% Electricity from the system 17% Natural gas 15% Residual oil 1% The structure of energy consumption by most energy intensive plants (CHP plants excluded) Rolling 18% Sinter production 7% Electric steelmaking 5% Coke and chemicals production 8% Blast furnace process 42% 6

7 STRATEGIC ENERGY EFFICIENCY GOAL 2020 Energy efficiency at Metinvest plants will be improved due to the following technological solutions GJ/t Ilyich Plant Azovstal YeMZ Replacing open hearth by converter steel making processes Average in Europe Moving to continuous steel casting 21-30% Improving the quality of refractories Installing high performance engines and drives Installing energy recovery systems (steam, electricity) Installing power plants

8 RESULTS 2011 Division Number of measures Energy efficiency measures Economic effect (million UAH) T.F.E. GJ MINING , , METALLURGICAL ,000 1,201, METINVEST (TOTAL) ,346 1,885, METINVEST HOLDING, LLC All Rights Reserved 8

9 Metinvest today IMPROVING ENERGY EFFICIENCY ACROSS METINVEST GROUP Energy saving in Metinvest Decommissioning of open hearth shop Construction of new blast furnace No. 3 at YeMZ Approaches to systemwide management and international initiatives 9

10 ENERGY SAVING IN METINVEST 1. Comprehensive modernisation and reconstruction programme realised by Metinvest Group companies covers the entire environmental impact produced by the metal plants and includes installing the latest purification equipment at all steel facilities. Environmental investments make some 22% of the total invesments in modernisation of production facilities. The modernisation programme will help to improve energy efficiency by 70% 2. Energy saving activities Adopting new technologies Using associated gases Introducing an automated energy metering system, etc. These activities will help to improve energy efficiency by 20% 3. Continuous operational improvements and organisational actions Improving production processes Changing the equipment operation modes Repairing equipment to save energy Operational improvements in consumption of fuel and energy resources. The organisational actions will help to improve energy efficiency by 10% 10

11 DECOMMISSIONING AZOVSTAL'S OPEN HEARTH SHOP Open hearth steel production consumes 20 times as much gas as the converter production Cost of steel produced through open hearth process can be 30% higher than that produced through oxygen converter process. Decommissioning open hearth furnaces helped Azovstal cut down 125 million m3 of natural gas per year (about 12% of the total gas consumption). 11

12 CONSTRUCTION OF NEW BLAST FURNACE NO. 3 AT YeMZ Yield of pig iron increased by 1.2 million tonnes Modern blast furnace gas cleaning system by Paul Wurth (Luxembourg) helps to remove harmful impurities from blast furnace gas and use 99.9% of it instead of natural gas. Energy saving effect makes 36,100 t.f.e. per year Over 130 new jobs created Over 120 specialists took training courses, including industrial placements at leading steel plants in Russia and Europe Blast furnace No. 3 at YeMZ 12

13 Metinvest today Improving energy efficiency across Metinvest Group APPROACHES TO SYSTEMWIDE MANAGEMENT AND INTERNATIONAL INITIATIVES Common approach to assessing energy consumption Adoption of ISO 50001:2011 World Steel Association (worldsteel) project 13

14 COMMON APPROACH TO ASSESSING ENERGY CONSUMPTION The EU's approaches outlined in The Best Technologies for Energy Efficiency serve as the basis for assessing energy consumption at plants Approved energy efficiency calculation method applied to products of Steel and Rolled Products Division Carried out analysis of energy consumption by companies over the last ten years; identified factors affecting energy intensity GJ/t introduced as the key performance indicator Started developing the strategy to catch up with the best European indicators; set the key performance indicators for companies for

15 ADOPTION OF ISO :2011 ISO on energy management systems is the energy efficiency best global practice compiled in one document 1. Systemwide approach to achieving continuous improvement in energy efficiency 2. Energy and resource saving 3. Reducing operational costs 4. Reducing GHG emissions and environmental footprint In 2012 ISO will be adopted by the following Metinvest enterprises: Azovstal Steel Plant Ilyich Steel Plant YeMZ KhTZ SevGOK InGOK CGOK 15

16 WORLDSTEEL PROJECT ENERGY USE IN STEEL INDUSTRY Establish the world's best energy intensity standards in pig iron and steel production (GJ per metric tonne) Develop a common energy intensity calculation method for major processes Identify the most efficient and effective: equipment, approaches, methods and managerial practices to reduce energy consumption at steel plants Programme will help to compare energy efficiency of steel companies across the globe 16

17 THANK YOU FOR ATTENTION 17