NLMK Group, an international steel company with operations in Russia, the United States, and the European Union, has begun commercial operation of a hydrogen unit that generates hydrogen from natural gas through vapour reforming at VIZ-Steel in Yekaterinburg, where hi-tech transformer (grain-oriented) steel is produced.

This project will provide a three-fold reduction in the cost of hydrogen production. The new technology, which replaces expensive electrolysis, requires 30 times less energy to generate hydrogen bringing annual energy consumption down by 75 million kW*h.

Hydrogen produced by the reforming plant is used in protective atmospheres at all stages of thermic transformer (grain-oriented) steel treatment: decarbonisation; heat resistant and insulating coating; and high-temperature annealing. These processes have a substantial impact on the unique magnetic properties of transformer steel.

Sergey Chebotarev, NLMK Group Vice President for Energy, said: “A new technology for generation of hydrogen through vapour reforming at our energy-intensive transformer steel operations is an important element of our programme for increased energy efficiency and reduced production costs, which are part of NLMK Group’s Strategy 2017.  This technology enables a three-fold reduction in VIZ-Steel’s hydrogen production costs. The annualized gain from this investment project is RUB 200 million in saved energy costs.”

The vapour refoming unit, which has a capacity of 4,500 m³/h, includes three autonomous process lines with a capacity of 1,500 m³/h each. This is the optimal set-up for continuous operations in order to ensure an uninterrupted supply of protective gas; and to minimize equipment maintenance costs.

The unit is equipped with high-efficiency rotary compressors that benefit from low energy consumption. The air-cooling system, rather than cooling using a water cycle, ensures greater reliability of the equipment in the climate of the Urals.

Investment in the upgrading of hydrogen production at VIZ-Steel totalled approximately RUB 1.2 billion.