Nornickel seeks to cover its primary energy needs from renewable sources, maintaining or reducing energy consumption and increasing energy efficiency. The Company makes continuous efforts to reduce the consumption of energy sources such as natural gas, diesel fuel and coal, as well as to provide subsidiaries with reliable and efficient energy sources in the long term, as set out in Russia’s Energy Strategy to 2035.
Nornickel’s Energy Division is a critical part of the Company’s production process and a crucial link in the uninterrupted supply of power to local communities in the regions of operation.
Key facilities of Energy Division
Norilskgazprom
The company has been producing natural gas and gas condensate since 1969 (the Pelyatkinskoye, Severo‑Soleninskoye and Yuzhno‑Soleninskoye gas condensate fields and the Messoyakhskoye gas field). Gas and gas condensate reserves are estimated at 245.4 bcm and 4,527 kt respectively, while production of natural gas and gas condensate in 2023 came in at 2,720 mcm and 85 kt respectively.
Norilsktransgaz
The company transports natural gas and gas condensate from the fields to consumers in the Norilsk Industrial District. The total length of gas and condensate pipelines is 1,653 km.
NTEC
The company generates, transmits and supplies power and heat to consumers. The energy comes from both renewable (hydropower) and non‑renewable (natural gas) sources. NTEC operates five generating facilities: three thermal power plants (with a capacity of 1,154 MW) and two hydropower plants (with a capacity of 1,102 MW). Power from renewable sources is generated at Ust‑Khantayskaya and Kureyskaya HPPs.
Taimyr Fuel Company
The company is a strategic supplier of light and dark petroleum products to the Far North, covering important commercial and social functions.
55%
of electricity consumed came from renewable sources
More than half of the electricity is generated by two hydropower plants with a total capacity of 1,102 MW:
Ust‑Khantayskaya HPP – 502 MW;
Kureyskaya HPP – 600 MW.
3 gas heat and power plants
The rest of the electricity and heat demand is covered by:
CHP‑1 – 315 MW;
CHP‑2– 459 MW;
CHP‑3 – 380 MW;
with a total capacity of 1,154 MW.
7 gas boilers
One boiler in each Talnakh, Kayerkan and Alykel, and four boilers in Dudinka provide the district with heat.
The most essential projects implemented by Energy Division to improve equipment reliability, mitigate physical climate risks, enhance energy efficiency and increase output include:
replacement of a power unit at CHP‑2in Norilsk;
reconstructionof the backup diesel fuel storage facilities at CHP‑1, CHP‑2 and CHP‑3, boiler in Dudinka as well as at Ust‑Khantayskaya HPP and Kureyskaya HPP;
modernisationof the electricity, heat and water supply networks;
constructionof a water intake facility on the Norilskaya River;
reconstruction of the municipal sewage system in Norilsk;
modernisationof the gas transmission and gas distribution networks;
constructionand fit‑out of five new gas wells at the Pelyatkinskoye gas condensate field;
comprehensive oil terminal reconstructionprogramme: Norilsk, Dudinka and Kayerkan oil depots.
Use of renewable energy sources
Nornickel runs energy infrastructure development initiatives aimed at both increasing the reliability of asset operation and reducing greenhouse gas emissions.
In 2023, the Group‑wide share of power from renewable sources was 55%, up 4 p.p. y‑o‑y. Nornickel’s investment programme includes projects intended to ramp up the use of renewable energy sources, to save fuel and energy resources, and to improve the reliability of power and gas supply.
Due to the harsh climate conditions of the Group’s production assets, the use of solar, geothermal and wind energy is limited.
From time to time, the Company reviews new experimental and industrial carbon capture, transportation and storage solutions from Russia, and monitors confirmed positive experience with the implementation of such solutions at high‑capacity gas heat and power plants.
In 2023, a partnership project was launched to meet the Company’s production plans, involving the construction of small‑capacity (around 300 MW) nuclear power plants in permafrost areas. At the moment, we are searching for the sites for nuclear power plants. One of the criteria is access to the surface of hard rock. This has to do with associated construction costs as well as the safety of operations in process and environmental terms. In the long term, we plan to fully meet the Group’s energy needs through synergies between nuclear, thermal generation and hydropower generation capacities.
Share of renewable energy in total electricity consumption by Nornickel Group,%
Total energy consumption by Norilsk Nickel Group,TJ
GRI 302‑1, 302‑3
Indicator
2018
2019
2020
2021
2022
2023
Fuel consumption
148,910
144,772
141,237
151,235
141,909
137,150
Energy from renewable sources (HPPs)
14,877
15,058
15,310
14,586
16,152
16,800
Electricity and heat procurement from third parties
10,931
11,331
11,200
10,891
11,005
8,701
Electricity and heat sales to third parties
18,926
18,766
17,254
19,974
18,968Including 4,183 TJ of electricity and 14,785 TJ of heat energy.
19,216Including 4,203 TJ of electricity and 15,012 TJ of heat energy.
Group's total energy consumption (1+2+3 – 4)
155,792
152,395
150,493
156,738
150,098
143,435
Energy intensity, GJ /RUBmlnTo calculate internal energy intensity, the Group’s total energy consumption and the consolidated IFRS revenue were taken as the numerator and the denominator.
214
174
135
117
127
116
Fuel consumption by Group companies by type of fuel,TJ
GRI 302‑1
Indicator
2018
2019
2020
2021
2022
2023
Total fuel consumption
148,910
144,772
141,237
151,235
141,909
137,150
Natural gas
129,335
125,329
122,216
130,867
125,934
121,643
CoalThe Company uses coal as a chemical element in its production processes, with no coal used for heating purposes.
1,660
2,087
2,180
1,557
2,027
1,562
Diesel fuel and fuel oil
13,788
13,535
13,939Taking into account the diesel fuel lost as a result of NTEC’s CHP-3 accident on 29 May 2020.
15,097
13,623
13,080
Gasoline and jet fuel
4,127
3,820
2,902
3,715
325
312
Lignite
–
–
–
–
–
552
Electricity and heat consumption by Group companies,TJ
GRI 302‑1
Indicator
2021
2022
2023
Including in 2023
Electricity
Heating and steam
Electricity and heat consumption by the Group companies
60,771
60,143
59,687
30,334
29,353
Including:
Polar Division
30,727
31,307
32,991
14,665
18,327
NTEC
6,439
6,045
5,907
3,993
1,913
Kola MMC
9,393
9,289
9,097
6,226
2,872
HPP share in total electricity consumption in the Norilsk Industrial District
52%
56%
58%
–
–
HPP share in total electricity consumption by the Company
47%
51%
55%
–
–
HPP share in total electricity and heat consumption by the Company
24%
27%
28%
–
–
Share of renewables in total power and fuel consumption
9%
11%
12%
–
–
Fuel and energy savings resulting from energy consumption reduction and energy efficiency improvement initiatives in 2023
GRI 302‑4
Indicator
Group total
Including
Polar Division
NTEC
Kola MMC
Medvezhy Ruchey
Other companies
Total savings, TJ
469.5
4.8
163.1
171.5
54.9
75.3
Including:
electricity
55.1
4.8
–
5.9
4.2
40.3
heat in water and steam
251.3
–
–
165.6
50.7
35.0
fuel
163.1
–
163.1
–
–
–
The Company annually develops and implements initiatives to save fuel, energy, and water.
In 2023, RUB 4.3 bn was invested in energy efficiency improvements, which helped reduce fuel and power consumption by 469.5 TJ. Key energy efficiency initiatives included replacement of transformers, installation of automated outdoor lighting furnished with twilight photocell and motion sensors, improvement of thermal insulation in pipelines, transfer of mine air heaters to another source of energy, and decentralisation of air supply to mines.
Promising areas for reducing GHG emissions
Climate‑related projects
Nornickel is considering potential climate‑related projects to reduce the impact of its operations on climate change. To that end, the Company entered into an agreement with the Siberian Federal University to develop high‑level approaches to implementing a comprehensive nature‑based climate solution project.
Mineralisation of mining waste
Another promising area for reducing carbon footprint is natural and artificial mineralisation of mining waste.
In the process of mining, rock is extracted from under the ground and goes to concentrators, where grinding takes place and valuable content is separated from waste rock, or tailings. After that, tailings undergo special treatment and are sent to tailing dumps to be distributed across their entire surface. During weathering, which is long‑term exposure to air, minerals contained in Nornickel’s ores react with carbon dioxide to form stable secondary carbonates in tailing dumps. Nornickel’s processes of ore mining and delivery to the surface thus create conditions for carbon dioxide capturing, or natural mineralisation.
In natural conditions, tailings are capable of fixing from 4.5 to 17.9 kg of CO2per tonne of tailings through chemical reactions subject to the mineral composition of the waste rock. Based on the findings of a natural mineralisation study, we calculated the amount of CO2assimilated in 2022 and 2023 (around 300 kt of CO2).
The Company is currently developing a methodology to assess and account for the carbon sequestration capacities of tailings. Following an audit and verification by an external auditor, this methodology will be used in the Company’s statements about GHG emissions and absorption capacities.
Going forward, the Company will focus on developing a technology for artificial mineralisation of tailings. New solutions in this area will significantly increase the carbon sequestration capacity of tailings compared to natural mineralisation. Once the technology is implemented across the Company’s sites, it will also substantially reduce the carbon footprint of our products.
