The Russian steel producer Novolipetsk Steel (NLMK) has announced that it has signed a €125 million loan agreement with the European Bank for Reconstruction and Development (EBRD) to finance its energy efficiency program. The funds will be provided in two installments for three and five year terms.
Accordingly, the funds will be used by NLMK to finance the construction of a 150 megawatt power plant, which will be fired using by-product gas from blast furnace operations.
In addition, the funds in question will be directed towards the financing of NLMK's plans to integrate pulverized coal injection (PCI) technology into its blast furnace operations.
"EBRD loan funds will help to lower the costs of the capex projects that will improve the energy efficiency of our operations substantially, decrease CO2 emissions, and increase NLMK's energy self-sufficiency by up to 56 percent," NLMK Group's financial vice president Galina Aglyamova said.