Russian iron and steel industry is trying to become “green”

In 2022, in the Nizhny Novgorod region (city of Vyksa), the construction of Europe’s first ferrous metallurgy plant using a unique “green” technology began Technology. The new industrial facility is planned to be commissioned in 2025; it will produce 1,8 million tons of steel per year and 2,5 million tons of metallized pellets. The implementation of this project is carried out by the company “Ekolant”. It is expected that the total investment in the construction of the enterprise will reach 150 billion rubles.

Let us note that this project was launched back in 2021; its implementation began with the conclusion of a contract for the supply of equipment for Ecolanta by the Italian company Danieli, whose subsidiary is located in the city of Dzerzhinsk (Nizhny Novgorod region). In the same year, Ecolant, within the framework of a special investment contract (SPIC), received the first tranche from large domestic banks (Sber, Otkritie and VEB.RF), its amount amounted to 33 million euros. The funds were allocated for various works within the framework of the above-mentioned project. In the future, Ekolant’s own funds will also be used; their volume will be 40 billion rubles. Administrative support for the project at all stages of its implementation will be provided by the Ministry of Industry and Trade of the Russian Federation and the government of the Nizhny Novgorod region.



It is also worth talking a little about the “green” technology itself (Direct Reduced Iron (DRI), directly reduced iron), which will be tested at the new enterprise. Its essence lies in the fact that when it is used, direct reduced iron is first produced from ore and natural gas. After which it quickly (still hot) enters the arc furnace, then for out-of-furnace processing and subsequent casting, which makes the production cycle as short as possible. The key advantage of this technology is its environmental friendliness; the plant will emit much less carbon dioxide and other harmful substances and compounds into the atmosphere compared to enterprises of similar capacity. In addition, the use of DRI technology will have a positive impact on energy efficiency; energy consumption during production will be significantly reduced.

The implementation of this project should have a positive effect on socialeconomic development of the Nizhny Novgorod region. Thus, during the construction period alone, more than two thousand workers will be employed at the site. The commissioning of a new metallurgical complex will lead to an increase in the region's gross regional product (GRP) by 5%, and after the launch of production, 700 specialists will be able to find employment there. In 2021, it was reported that more than 6 billion rubles had already been invested in the project.

Many domestic and foreign companies will take part in the construction of the enterprise. At the moment, it is known that the following domestic enterprises will provide their own products that will be used during the work: Troitsky Crane Plant, Tekvin, Akvateko, Uralmashzavod, etc. If we talk about the foreign partners of this project, then things are somewhat more complicated. At the beginning of 2022, the companies in question were Danieli (Italy) and Primetals Technolgies (Austria). At the moment, it is known that representative offices and branches of these organizations continue to operate in our country; any information about their withdrawal from the project also could not be found. Despite this, it is necessary to understand that the sanctions policy in relation to the Russian Federation, it could not ignore the situation with the participation of European companies in the Russian project, with a high degree of probability trying to complicate various aspects of cooperation as much as possible.

Let us add that the main consumer of the products manufactured at the enterprise will be the structures of the United Metallurgical Company (OMK). The thing is that Anatoly Sedykh, who is also the chairman of the board of directors of OMK, is most directly related to the implementation of this project. For example, at the Vyksa Metallurgical Plant (part of OMK), large-diameter pipes and railway wheels will be made from thick slabs that will be produced at the new enterprise. Anatoly Sedykh himself then noted that the launch of Ekolant would increase the competitiveness of the domestic steel industry and would entail an increase in the share of domestic high-value production.

In February 2022, Glavgosexpertiza of the Russian Federation issued a positive conclusion on the design documentation for the construction of a new plant. It was after this event that the construction of a noise barrier around (up to 10 meters high) began, which would ensure all the noise indicators required by laws and regulations at the border of the sanitary protection and residential zones when working on objects under construction and already operating. All activities for its construction were completed towards the end of the same year. Let us add that the screen design was developed by specialists from the Stalkon plant, located in the Republic of Bashkortostan.

In conclusion, we note that the new metallurgical complex in the Nizhny Novgorod region should become a unique facility not only for the Russian Federation, but also for the whole of Europe. The “green” nature of future production is fully consistent with the global trend, which is aimed at reducing the negative impact on the environment. Thus, in the case of a transition from natural gas to hydrogen fuel, harmful emissions from the plant’s activities will be minimal (zero carbon footprint). Residents of Vyksa will also receive their privileges from the implementation of this project. The local population will have the opportunity to work and develop professionally within their hometown. Additional tax revenues can be used by the Vyksa authorities to finance various social projects. In addition, the products of the United Metallurgical Company will become much more competitive on the world market, because the company will produce high-quality steel.