MOSCOW (MRC) -- Air Liquide has signed a new long-term contract with Russian steel producer Severstal to supply oxygen to its CherMK site in Cherepovets, Russia, said the company.
PJSC Severstal and Air Liquide signed a new long-term contract for the supply of oxygen, nitrogen and argon to Cherepovets. Air Liquide is investing about 50 million euros in the construction of a modern air separation unit (ASU), which will increase energy efficiency and reduce the complex impact of Severstal's production processes on the environment.
Air Liquide will design, build and maintain a new ASP with a capacity of 2,000 tons of oxygen per day at the site of the Severstal Cherepovets Metallurgical Plant. The ASU will increase the total production capacity of Air Liquide in Cherepovets to 7,000 tons of oxygen per day, which will make this site one of the world's largest facilities producing industrial gases for the needs of the metallurgical industry. The project will be implemented by Air Liquide Severstal, a joint venture between Air Liquide and Severstal in 2005.
The Air Liquide Engineering and Construction team uses the latest technology to build this large-scale ASP. It is planned that the unit will be commissioned by the end of 2020. It will significantly improve energy efficiency and reduce CO2 emissions by 20,000 tons annually, which is comparable to the annual emissions of 7,500 vehicles. This will contribute to the Air Liquide Group's goal of reducing the carbon intensity of its business by 30% between 2015 and 2025.
This signing, involving the construction of the third ASU since 2007, installed and operated by Air Liquide in Cherepovets, along with the recent renewal of our original contract, reflects the long-term partnership and mutual trust that exists between Air Liquide and Severstal.
Alexander Shevelev, CEO of Severstal, said: “The signing of this agreement proves Severstal's commitment to sustainable development: we continue to reduce air emissions and improve energy efficiency in production. We are pleased that our colleagues from Air Liquide also share our commitment to environmental protection and demonstrate a responsible attitude towards the environment. Over the years of our cooperation, Air Liquide has demonstrated its ability to deliver high quality products and innovative services, and I hope that we will continue to work together to address environmental issues along with the development of production and beyond. "
Guy Salzgeber, Vice President of Air Liquide and Member of the Group's Executive Committee for Industry Europe, commented: “We are delighted to strengthen our long-term partnership with Severstal. The signing of this major contract and the renewal of the previous one demonstrate confidence in our ability to create value for our customers and maintain long-term performance, which is a key factor in driving profitable growth. We are also ready to accompany our customers in the energy transformation process by offering low carbon solutions to support the sustainable development of the industry. "
Severstal has been actively working to reduce greenhouse gas emissions for several years. The enterprises have implemented measures to reduce greenhouse gas emissions through the introduction of more efficient technologies, including improving the technologies for the production of iron and steel (reducing the consumption of limestone and dolomite), reducing the use of natural gas (using coke oven and blast furnace gases) and transferring a number of power boilers from solid to gaseous fuels (use of coke oven and blast furnace gases). The total volume of direct greenhouse gas emissions at Severstal in 2018 amounted to 22.1 million tons, which is 4.7% less than in 2016.
As per MRC, Air Liquide, one of the world's leading industrial gas companies, has three long-term gas supply contracts with BASF in Antwerp, Belgium. The company has signed a new 15-year agreement to resume air gas supplies to existing plants operated by BASF in the area, as well as to a new ethylene oxide plant being built by BASF.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.