Russian steel maker Severstal has made a strategic decision to increase the share of renewable energy in the energy portfolio, including by increasing heat generation based on biofuel at the operating boiler houses of Karelsky Okatysh, leading iron ore mining and processing plant in Russia. At Karelsky Okatysh, it is planned to gradually increase the share of biofuels in the balance of heat production from 1.2% in 2021 to 13.5% in 2026.

The total energy consumption of the Karelsky Okatysh plant in 2020 is 264,532 Gcal / year, of which 3,060 Gcal / year (1.2% of the total consumption) are produced on biofuel, the rest of the energy is generated on fuel oil. At the same time, biofuel (wood chips) is used to generate heat at Karelsky Okatysh's own boiler house. Currently, the use of alternative fuels (natural gas) is not possible at Karelsky Okatysh due to its remote location and lack of infrastructure, but the company sees an opportunity to increase the purchase of high-quality wood chips, including from local suppliers.

Biofuel is any fuel derived from biomass, grown or obtained from waste. However, Severstal pays special attention to compliance with the “sustainability” criteria and certifies biofuels for compliance with the ISCC (International Sustainability and Carbon Certification) requirements. Going forward, Severstal plans to use only certified biofuels, which ensures that chips will only be purchased from responsible suppliers. The implementation of projects aimed at the use of biofuels leads to a reduction of emissions of CO2. The expected effect from them is more than 11 thousand tons of СО2 -eq / year.

Severstal Increases Share of Renewable Energy in Energy Portfolio

Strategic Research Institute

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