Energy efficiency

Nornickel’s major production assets are located beyond the Arctic Circle where the winter lasts eight months a year. It is therefore critical for the Group to ensure reliable and high-quality power supply to its enterprises and population in the regions where it operates.

Intermediate energy consumption by the Group
Indicator 2015 2015, % 2016 2016, % 2017 2017, %
Electric power, TJ, including: 42,943 56 32,530 50 32,355 52
Electric power generated by the Company’s enterprises from renewable energy sources (HPPs), TJ 17,027 40 11,856 36 12,175 38
Heating and cooling energy, TJ 25,721 33 29,888 46 24,101 39
Steam, low-grade heat, TJ 8,692 11 2,803 4 5,507 9
Total 77,356 100 65,221 100 61,963 100

In 2017, the Company implemented a number of organisational arrangements and upgrades of its key power equipment as part of the Energy Saving and Energy Efficiency Programme.

These initiatives helped achieve savings of 100,116 tonnes of reference fuel (units) for CHPPs, 44.867 mln kWh of electricity for internal needs and 177,732 Gcal of heat against the targets.

In 2017, per unit fuel consumption at CHPPs decreased to 281.4 g/kWh, down by 13.9 g/kWh against the annual budget targets, 27.7 g/kWh vs 2016 and 9.7 g/kWh vs 2015.

Gas producers saved 17.574 mln cubic meters of natural gas in 2017 by cutting gas consumption for own technological needs and reducing technological losses during transportation.

The Company also generates electric power from renewable energy sources at NTEK’s Ust-Khantayskaya and Kureyskaya HPPs (installed capacity of 441 MW and 600 MW, respectively).

In 2017, the share of renewable energy stood at 38% for Nornickel and 44% for its Polar Division.

In 2018–2020, the Company will continue to renovate and upgrade the main power equipment and transmission devices along with waste water treatment systems.

38% the share of renewable energy in 2017

Energy consumption by Norilsk Nickel No other types of energy resources were used besides those specified in the table
Type of energy resource

2016

2017

Consumption in volume terms Consumption, RUB ’000 Consumption in volume terms Consumption, RUB ’000
Heat power, Gcal 5,587,849 4,702,584 4,737,249 4,393,019
Electric power, thousand kWh 5,158,974 5,272,779 4,489,188 4,854,566
Motor fuel, t 344 17,797 268 15,348
Diesel fuel, t 58,671 2,657,599 52,684 2,730,795
Heating oil, t 40,479 582,489 40,360 566,985
Natural gas, thousand cubic meters 545,712 1,363,718 497,141 1,458,756
Coal, t 49,760 20,612 17,359 4,204
Kerosene and aviation fuel, t 115 5,008 124 6,122