Severstal has set a medium-term goal to reduce greenhouse gases emissions by 2030

PAO Severstal, one of the world’s leading vertically integrated steel and mining companies, has set a medium-term goal to reduce the carbon intensity of its CO2 emissions per tonne of steel, calculated in accordance with the methodology established by the World Steel Association (Worldsteel) by 10% by 31 December 2030, compared with the 2020 base year.

Defining a medium-term goal is part of Severstal’s longer-term strategy to reduce greenhouse gas emissions. Severstal is systematically introducing measures to reduce its greenhouse gas emissions.

The medium-term target will be achieved through projects including the technical re-equipment of production facilities and the introduction of the best available technologies at all the Company’s assets. These include: the construction of a boiler house within boiler unit No. 11; the installation of a gas recovery compressor-free turbine (GUPT) No. 16 (these projects among other energy efficiency and electricity generation measures will allow for 95% of the electricity consumed by Severstal to be generated by itself); a system for the recirculation of sinter gases from sinter machines No. 10-11; the replacement of coke with a hydrocarbon fuel; and a number of other measures.

The combined measures will reduce the intensity of Severstal’s CO2 emissions from 2.063 tonnes of CO2 per tonne of steel in the year ending 2020 to 1.857 tonnes of CO2 per tonne of steel in 2030.

Alexander Shevelev, CEO of Severstal, commented:

“Severstal has set itself an ambitious goal to reduce its environmental impact and contribute to global efforts to achieve the goals of the Paris Agreement. A year ago, Severstal’s Board of Directors was one of the first steel companies in Russia to approve a public goal to reduce greenhouse gas emissions on 3 per cent by 2023. Today, we confirm that we are not only meeting the short-term goal we have already committed to, but also setting new, more ambitious ones. Our new 2030 target is underpinned by specific projects set out in our investment programme”.

Delivering on the target will enable Severstal to become one of the world’s top 15 steel producers in terms of having the lowest intensity of greenhouse gas emissions. Today, Severstal is in the first quartile and has one of the lowest carbon intensity indicators in the industry according to the World Steel Association.

Severstal’s specific greenhouse gas emissions are measured in accordance with the methodology of the World Steel Association (Worldsteel) and ISO 14404 standards. Relevant CO2 emissions are included in the calculation of the steel production intensity indicator (scopes 1-3). In accordance with Severstal’s Audit and Assurance Policy, Severstal’s greenhouse gas emissions were subject to external assurance on 31 December 2020, which was published in our Sustainability Report and carbon intensity will be subject to external assurance at 31 December 2021 and annually thereafter.

In July 2020, the Board of Directors of Severstal approved a short-term goal to reduce the intensity of greenhouse gas emissions by 3% by the year 2023, compared with the level of 2020. This will reduce the intensity of CO2 emissions per tonne of steel from 2,063 tonnes per tonne of steel to 2,001 tonnes per tonne of steel by 2023.

Severstal is on track to meet this short-term target.

Notes to editors:

In 2020, Severstal’s investment in environmental activities, including current costs and investments, increased by 48.6% compared with the previous year, to 5.6 billion roubles. Environmental investments amounted to 2.419 billion roubles, including 2.261 billion roubles at its flagship steel mill in Cherepovets. The share of expenditures on measures for the protection of atmospheric air as part of total environmental investment increased significantly (+134.6%).

Air Liquide and Severstal extend their partnership with a new long-term contract in major oxygen site in continental Europe

Air Liquide and PAO Severstal, one of the leading steel producers, have signed a new long-term contract for the supply of oxygen to the Severstal CherMK site in Russia. Air Liquide will invest around 60 million euros in the construction of a state-of-the-art Air Separation Unit (ASU) on the site, one of the largest oxygen sites in continental Europe, where it already owns three other ASUs. Thanks to enhanced energy efficiency, this new unit will improve the overall environmental footprint.

Air Liquide will design and build a new state-of-the-art ASU on the Severstal CherMK site in Cherepovets, one of the most competitive steel making sites worldwide. The new unit will produce 1,000 tons of oxygen per day. This is the fourth ASU installed by Air Liquide in Cherepovets.

Planned to be started up by the end of 2023, the unit will be owned and operated by Air Liquide Severstal, a joint venture established in 2005 between Air Liquide (75%) and Severstal (25%). It will bring the total production capacity on this site, one of the largest sites for Oxygen production in continental Europe, at above 8,000 tonnes of oxygen per day.

This new ASU is characterized by improved energy efficiency. In the framework of the agreement the two companies have also committed to further reduce the CO2 emissions arising from the oxygen production, in line with Air Liquide’s commitments to address the urgency of climate change and to act for a sustainable future.

Francois Jackow, Executive Vice President and a member of the Air Liquide Group’s Executive Committee supervising Europe Industries activities, said:

“This new contract will further strengthen our long-term partnership with Severstal, which we have been regularly building since 2005. Through our know-how and innovative solutions, we will keep working with Severstal to lower the environmental footprint of this major industrial site of Cherepovets. As part of its objective to reach carbon neutrality by 2050, Air Liquide is committed to address the urgency of climate change and to act for a sustainable future”.

Alexander Shevelev, CEO of Severstal Management, said:

“Severstal pays great attention to reducing its environmental impact, and we are committed to achieving the gradual decarbonization of our production processes. We have set ourselves the near-term target of reducing our greenhouse gas emissions intensity by 3% by 2023 compared to 2020 levels, and we fully intend to set new and ambitious goals. I am confident that our agreement with Air Liquide, a long-standing partner of Severstal and a leader in sustainable development, will contribute significantly towards the implementation of our environmental and climate strategy”.

Air Liquide in Russia

Air Liquide was established in Russia in 1989 and was primarily involved in the sale of industrial gas production equipment. In 2005, OOO Air Liquide, the Russian subsidiary for production and sale of industrial gases was founded. Today, the company operates 18 industrial sites in key regions. More than 700 employees supply products and services to over 1,700 customers.