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Air Liquide and Severstal strengthen partnership under a new long-term contract

Press Releases

PAO Severstal and Air Liquide have 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 ASU with a capacity of 2,000 tons oxygen per day at the site of the Cherepovets metallurgical plant "Severstal". The ASU will increase the total production capacity of Air Liquide in Cherepovets up to 7,000 tons of oxygen per day, which will make this site one of the world's largest facilities producing technical 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 will use the latest technology to build this large-scale ASU. the unit will be commissioned by the end of 2020. It will significantly improve energy efficiency and reduce CO 2 emissions by 20,000 tonnes annually, which is comparable to the annual emissions of 7,500 vehicles. This will contribute to the AirLiquide Group's goal of reducing the carbon intensity of its business by 30% between 2015 and 2025.

This is the signing 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 exist between Air Liquide and Severstal.

Alexander Shevelev, CEO of Severstal, noted: “The signing of this agreement proves Severstal's commitment to sustainable development : we continue to reduce emissions and improve energy efficiency in production. We are delighted that our colleagues at 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 tackle environmental issues together while developing production and beyond. ”

Guy Salzgeber, Vice President, Air Liquide and a member of the Executive Committee of the Europe Industry Group 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 our confidence in our ability to create value for our customers and maintain long-term efficiency, which is a key factor in achieving profitable growth. We are also ready to accompany our customers in the energy transformation process by offering low-carbon solutions to support sustainable industrial development. "

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 fuel (use of coke oven and blast furnace gases). The total volume of direct emissions of greenhouse gases at Severstal in 2018 amounted to 22.1 million tons, which is 4.7% less than in 2016

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