The PJSC Magnitogorsk Iron and Steel Works (MMK), city of Magnitogorsk, Russia, won the 2018 Award of Excellence in Energy Management from the Clean Energy Ministerial (CEM), a high-level global forum that promotes policies and programs to advance clean energy.

An independent panel of international experts selected only three organizations worldwide for this top honor in energy management. The CEM award honored recipients of this prestigious award at a ceremony taking place alongside the annual CEM meeting in Copenhagen, Denmark on 24 May 2018.

Pavel Shilyaev, MMK CEO, said: “Magnitogorsk Iron and Steel Works has been historically focusing on energy performance improvement. In 2016, the Corporate Energy Policy has been approved. Its implementation is currently underway based on the strategic goal of reducing production costs through energy cost savings. Activities under this Corporate Policy imply improved management efficiency, increased motivation and engagement of personnel as well as introduction of most advanced technologies. MMK is honored to receive The Top Global Energy Management Award as a proof of the corporate commitment to the best global practices in the area including ISO 50001 international standards.”

 This award is part of the CEM Energy Management Leadership Awards program, managed by CEM’s Energy Management Working Group (EMWG), which includes representatives from Argentina, Australia, Canada, Chile, China, Denmark, the European Commission, Finland, Germany, India, Indonesia, Japan, Mexico, Saudi Arabia, South Africa, Sweden, the Republic of Korea, United Arab Emirates, and the United States.  

To enter the awards program, MMK developed and submitted a detailed case study describing its experiences and results using ISO 50001. This award-winning case study is available on the CEM website as an inspiration and resource for other organizations interested in achieving significant and enduring energy and cost savings.

In the case study, MMK describes key aspects of its ISO 50001-certified energy management system and identifies resulting benefits, including the following [See submitted case study for potential content]:

• 8.1% energy performance improvement over three years;
• $38,596,000 of the total energy cost savings over three years (approx. $13 mln annually);
• 698,186 metric tons of the total CO2-eq. emissions reduction;
• 4.4% energy savings in 2015; 1.9 % in 2016, and 1.8% in 2017;
• Total compressed air savings – 11.7%;
• Total pure water savings – 7.9%.

The ISO 50001 standard is a framework to help companies manage and continually improve their energy performance and realize cost and emission reductions. Regardless of a company’s starting point, size, or sector, this framework helps achieve energy and cost savings year after year. ISO 50001 is a product of international collaboration, drawing on best practices from over 50 countries and demonstrating impressive savings among organizations worldwide. The standard is proven to be business-friendly, globally relevant, and transformational, as it embeds best practices into any organization and provides a global benchmark for climate and clean energy action.

About the company:

MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel-producing complex encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2017, the company produced 12.9 million tonnes of crude steel and 11.6 million tonnes of commercial steel products. MMK Group had revenue in 2017 of USD 7.5 billion and EBITDA of USD 2.03 billion.

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