As part of its strategic programme to ensure the energy independence of Metinvest's enterprises, two gas generators for producing electricity were put into operation at Northern Iron Ore in July. In just two months of operation, the units generated 1,040 MWh of electricity, delivering an economic effect of UAH 2.3 million. In total, four such units will be installed at the plant.
The introduction of gas generation is one of the key investment projects for 2024–2025, with various functions of Integrated Iron Ore Plants involved in its development. The idea of making the company's assets energy independent was finalised in August last year. At that time, Metinvest's senior management tasked energy specialists with finding a technical solution that would ensure the safe shutdown of facilities during blackouts, followed by the rapid resumption of production once power was restored. After a detailed review, the solution chosen was the introduction of gas generation.
In November last year, a contract was signed for the purchase and installation of gas generators at Northern Iron Ore. Just six months later, the first two units, each with a nominal capacity of 2.8 MW, were connected to the networks of main step-down substation No. 2 and put into operation. During project implementation, the energy management department analysed the rising cost of electricity and demonstrated the feasibility of using the gas generators not only for safe shutdowns, but also for achieving additional economic benefits. Currently, the units are run during peak load periods on Ukraine's energy system.
"Although commissioning work on the first two gas generation units is still ongoing, we are already seeing positive economic returns from their use. We regularly calculate the cost of producing 1 kWh based on the main operating expenses of the generators. These include natural gas, lubricants for the internal combustion engines, and the units' own auxiliary consumption. Taking these factors into account, we calculate the daily cost per kWh and compare it with the day-ahead market price. When it is economically advantageous, we start up the units. On average, they run for six to eight hours per day," explained Maksym STRILETS, Head of the Energy Management Department at Metinvest Northern Iron Ore.
The second stage of the project provides for the commissioning of two additional units at Northern Iron Ore. They will be connected to the networks of main step-down substation No. 4. To maintain the equipment, the plant has created a dedicated section staffed with a supervisor and operators responsible for the proper running of the gas units.
"In order for Metinvest's mining and processing plants to continue ensuring stable ore extraction and production of iron ore concentrate, we must achieve energy independence and reduce sensitivity to external factors. This is why we are investing UAH 473 million in the construction of our own energy sources at Northern Iron Ore, particularly in the introduction of gas generation. This will help reduce electricity purchase costs, balance the plant's power supply in case of restrictions, and allow for safe and accident-free shutdowns during disconnections from the main grid. These are critical factors that will strengthen the resilience of the plant," noted Ihor TONIEV, General Director of Integrated Iron Ore Plants.
