Annual report 2013

Energy Conservation and Efficiency

Norilsk, located 300 km north of the Arctic Circle, is among the five most northern cities in the world. Mean monthly temperatures are below 0 °C for eight months of the year. An increase in the total energy consumption by 12,300 TJ (by 5.3% as compared to 2012) was recorded in 2013 at the Group’s Russian enterprises located in the northern regions, which is mainly attributed to the prevailing unfavourable weather conditions.

The amounts and structure of direct consumption of energy derived from non-renewable energy sources underwent changes in the reporting year in comparison to 2012. The amounts of direct energy consumption in 2013 increased by 12.5% (18,095 TJ) in relation to the level recorded in 2012. Meanwhile, gas consumption increased by 14.6% (attributed to low levels of water in reservoirs of hydropower plants and an increase in the share of electric power generated by combined heat and power plants); the consumption of diesel fuel and coal went down by 4% and 1.1%, respectively.

In 2013, the consumption of indirect energy decreased by 8.7% (7,129 TJ) as compared to 2012. Meanwhile, the consumption of electrical energy went down by 11.8% and the consumption of energy for heating and cooling—by 7.5%. However, the consumption of steam energy rose by 5.7%. The structure of the indirect energy consumption underwent some insignificant changes in the reporting year as compared to 2012. It should be noted that significant levels of energy are generated by the Group’s own enterprises.

In 2013, the Group’s Russian enterprises saved a total of 2,058 TJ (0.86% of the total energy consumption, or 2.7% of the indirect energy consumption) as a result of implementing a series of measures. In 2012, more than half (55.2%) of the energy conserved resulted from efforts aimed changing the attitudes of personnel, and in 2013 a major part of energy savings was achieved due to equipment revamping or replacement (56.5%). The impact of production modernisation also increased: while in 2012 the share of energy conserved due to modernisation was only 6.6%, it tripled in the reporting year, reaching 23%.

Direct consumption of energy, TJ

Structure of direct consumption of energy derived from non-renewable sources, %

Indirect energy consumption, TJ

The greatest reduction in energy consumption was in thermal energy, where savings went from 27.4% in 2012 to 39.1% in 2013. The proportion of energy saved as a result of fuel conservation went down from 49.8% to 42.3%. The amount of energy saved as a result of measures at aimed to reduce energy consumption, also decreased insignificantly —from 22.8% to 18.6%.

Energy saved as a result of proactive efforts, %

Energy saved as a result of reducing energy consumption, %

ModerniSation of Hot Water Boilers at the Combined Heat and Power Plant of Kola MMC

The introduction of a computerised process control system for technological management of the fuel combustion process inside hot water boilers was completed at Kola MMC. Equipment installation was based on the implementation of a number of stages over the period of several years. The system covers all 4 hot water boilers of the Combined Heat and Power Plant. As a result of its implementation, the efficiency of hot water boilers increased by 0.85%, which is a significant value in the heat-and-power engineering. As a result, the specific rate of fuel consumption decreased. Conservation of fuel oil achieved on the hot water boiler KVGM-100 alone equaled to approximately 100 tonnes per year (approximately 1 million roubles in monetary terms).