The total economic effect from the implementation of projects to improve energy efficiency of production processes at Magnitogorsk Iron and Steel Works (MMK) in 2019 amounted to around RUB 500 million.

These substantial results were achieved thanks to MMK's efforts to improve energy efficiency at all levels of the industrial site. One of the most notable areas was the introduction of rationalisation proposals: during the year, through the Energy Management Platform (EMP) app, the Company's employees submitted 921 proposals, 298 of which were implemented as projects with an expected economic effect of RUB 208 million. Also in 2019, six low-budget high-performance projects (baby-capex) were implemented, the planned effect of which is a total of RUB 175 million.

In addition, last year, work continued to fulfil the Company’s obligations under contracts for the provision of energy services. In particular, the economic impact of the project to install frequency converters on pumps at MMK's central power station amounted to RUB 1.5 million for the year, introduction of an automated control system for the smoke exhauster drives of the converter gas utilization system for the oxygen-converter shop created an economic effect of RUB 85.3 million and replacement of the ceiling lighting in the rolling shops had an economic impact of RUB 4.3 million.

MMK has implemented an energy management system (EnMS) which is certified for compliance with the requirements of the international standard ISO 50001:2011. In September 2019, MMK's EnMS successfully passed a re-certification audit in accordance with the requirements of the international standard ISO 50001:2011 and received a certificate from TÜV International Certification (Germany) which is valid for a 3-year period. The scope of application of MMK's EnMS was expanded to cover all production processes at the plant.

A professional development programme 'Energy Management System in accordance with the requirements of the international standard ISO 50001:2018' has been developed for all levels of employees of MMK. The corresponding section is included in the general list of tasks for assessing competencies in the format of 'professional knowledge' of managers, specialists and employees of the production departments. The energy management system section is being developed for the new version of MMK's website, which will provide interested parties with access to information about the operation of MMK's EnMS.

MMK continues to develop an automated energy management system platform. In particular, the 'idea management' section has modified diagrams of business processes, as well as functional modules, reports and EMP views. A diagram of the business process of implementing projects in the Industry 4.0 direction has been created. Currently, EMP supports ideas for all categories (energy saving, MTR saving, ecology, labour protection and industrial safety etc.).

EMP provides access to energy efficiency indicators, displays reports on energy resource losses, shows certificates of admission of control and measuring devices, energy efficiency indicators and measures to achieve them. In addition, EMP has implemented a system for calculating and monitoring the integrated performance indicator of the main energy management department. According to the 2019 results, an additional impact of 12% relative to the planned energy efficiency indicators was obtained in the main energy management department workshops. This was achieved, among other things, by increasing the use of secondary energy resources and saving on purchased resources (natural gas and electricity). Compared with 2018, the share of recycling of secondary gases at power plants increased in relation to output in 2019: up to 32.8% for coke oven gas, up to 56.0% for blast furnace gas and as a result, the share of natural gas consumption by power plants in the total fuel balance of MMK was reduced to 39.6%.

The expert community highly rates MMK's energy management system. In 2019, MMK was awarded a certificate by the United Nations Industrial Development Organisation (UNIDO) for its contribution to sustainable development and environmental initiatives in the Chelyabinsk region, as well as for the successful introduction of its 'Energy Management of Industrial Enterprises' programme.

The year before, MMK was awarded the international award for 'Outstanding Achievements in the Field of Energy Management 2018' at Clean Energy Ministerial, the Inter-Ministerial Conference on Clean Energy. General Director of MMK Paul Shilyaev, in this regard, noted: Magnitogorsk Iron and Steel Works traditionally pays special attention to improving energy efficiency. In 2016, the Company approved an energy policy that is currently being implemented in line with the strategic goal of reducing the cost of production by reducing energy costs. The activities carried out in line with this corporate policy are designed to improve management efficiency, increase staff motivation and engagement and also introduce advanced technologies.