Use of renewables and energy efficiency

The Company sources energy locally, primarily from low-carbon natural gas and renewable energy sources, namely two hydropower plants. Diesel fuel, fuel oil, petrol and jet fuel are used by its transport assets. Use of high-carbon fuel by energy assets is minimised. Only small amounts of coal are used in certain production processes. As a result of Nickel Plant shutdown, estimated coal consumption declined by 40–70 ktpa.

The Company’s priority energy source is hydropower generated by Ust-Khantayskaya and Kureyskaya HPPs. In 2019, renewables accounted for 45% of total electricity consumed by the Group and 54% of power consumption in the Norilsk Industrial District.

Fuel consumption by the Company (%)
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Electricity consumption (%)
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Group’s electricity generation and electricity and fuel consumption (TJ)For a detailed breakdown of the Group’s energy consumption by company, please see the 2019 Sustainability Report.
Indicator 2017 2018 2019
1. Fuel consumption by the Company Including the fuel used to generate electricity for Norilsk. 156,569 148,910 144,772
— natural gas 134,709 129,335 125,329
— diesel fuel and fuel oil 15,221 13,788 13,535
— petrol and jet fuel 5,178 4,127 3,820
— coal Coal is only used in production processes, with Kola MMC accounting for 45% of total consumption, GRK Bystrinskoye 27%, the Polar Division 13%, cement production 9%, and other subsidiaries 6%. 1,460 1,660 2,087
2. Electricity and heat from own renewable sources (HPPs) 12,414 14,877 15,058
3. Electricity and heat purchased from third parties 10,483 10,931 11,331
4. Sales of electricity and heat to third parties 19,503 18,926 18,766
Total consumption of electricity and fuel (1 + 2 + 3 – 4) 159,962 155,792 152,395

Nornickel is committed to the responsible use of heat and electricity. 87.5% of electricity is generated by own energy companies supplying electricity to both the Company’s facilities and third parties.

Nornickel’s investment programme prioritises several major projects to fully unlock the potential of renewable power sources (hydropower) and drive energy savings.

In 2019, spending under the programme totalled about RUB 16 bn (USD 246 mln).

Major projects completed in 2019 included:

  • Replacement of hydropower units at Ust-Khantayskaya HPP (turbine and electrical shops)
  • Replacement of power unit equipment at CHPP-2

In 2019, the Group invested significant efforts in improving energy efficiency, achieving total savings of 49,924 tonnes of reference fuel. In 2019, fuel consumption per unit of electricity supplied by CHPPs was 271 g/kW•h, exceeding the target by 17 g/kW•h. The Company’s subsidiaries also achieved total savings of 15 Mcm of natural gas by reducing their process needs and transportation losses.