Energy consumption and energy efficiency
Operating in the Arctic zone, Nornickel places significant focus on developing its own energy infrastructure and improving the efficiency of energy use. Nornickel pursues an energy policy aimed at ensuring a reliable and uninterrupted supply of clean energy to all stakeholders, while also contributing to the achievement of the goals of the Energy Strategy of the Russian Federation until 2035.
Nornickel’s priorities in energyNornickel’s priorities in energy
Guaranteed energy security for the isolated Norilsk energy system
Transition to environmentally safe and resource‑efficient energy
Sustainable use of natural resources and energy efficiency
Maximised use of equipment with verified Russian origin
More efficient management of energy facilities
Nornickel’s key activities contributing to the goals of Russia’s energy development strategy
Efficiently meeting the needs of the Russian Federation’s social and economic development by ensuring adequate production and export volumes of goods and services from the fuel and energy sector
Spatial and regional development of the energy sector through transformation and optimisation of energy infrastructure in line with the evolution of domestic and global markets for energy products and services
Achieving technological independence and enhancing competitiveness in the fuel and energy sector, meaning a sufficient level of in‑house expertise and locally manufactured equipment to ensure stable operations and long‑term development
Modernisation of the Energy Division’s infrastructure
In the Norilsk Industrial District, the Company’s enterprises comprising the Energy Division are the primary energy suppliers for both industrial operations and local communities. These energy facilities are located in the Norilsk District, operating under the harsh natural and climatic conditions of the Arctic. For a brief overview of these assets, please see Nornickel’s 2023 Sustainability Report.
Modernisation of energy infrastructure facilities in 2024
To ensure uninterrupted supply of all types of energy to consumers in the Norilsk Industrial District and improve the performance of generating units at combined heat and power plants (CHP) plants and HPPs, as well as to reduce energy losses along the entire energy generation and distribution chain, Nornickel is renovating its generation fleet and energy grid infrastructure in 2024:
- A retrofitting project was completed for a gas pipeline’s underwater crossing of the Bolshaya Kheta River
- Drilling operations continued on five wells at well pad No. 4 of the Pelyatkinskoye gas condensate field
- Pre‑commissioning operations were organised at the booster compressor station of the Severo‑Soleninskoye field
- Construction and installation activities were completed for the revamp of Unit No. 2 of CHPP‑2
- The upgrade programme was continued for emergency diesel fuel tanks
- A CNG filling station was commissioned in Norilsk
The total cost of CAPEX projects to expand electricity and heat generation capacity, as well as power grids and heat networks, amounted to RUB 4.7 billion in 2024.
Use of renewable energy sources
Nornickel considers renewable‑energy projects as one of the avenues for achieving its climate goals. Given the extreme natural and climatic conditions at the Group’s production sites, the use of solar, geothermal, and wind energy remains limited. However, the Company is exploring technological and organisational opportunities to install additional renewable energy capacity.
In the long term, the Company plans to build a balanced energy system based on a mix of nuclear, thermal, and hydro generation.
In 2024, the share of electricity generated from renewable sources reached 54.4% for the Group. This is slightly lower than in the previous year but exceeds the target of 46% set by the 2031 Environmental and Climate Change Strategy.
| Indicators | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Fuel consumption | 141,237 | 151,235 | 141,909 | 137,150 | 133,746 |
| Self‑generated energy from renewable sources (HPPs) | 15,310 | 14,586 | 16,152 | 16,800 | 16,686 |
| Electricity and heat purchased from third parties | 11,200 | 10,891 | 11,005 | 8,701 | 8,660 |
| Electricity and heat sales to third parties | 17,254 | 19,974 | 18 968 | 19 216 | 18 838 |
| Total energy consumption across the Group (1 + 2 + 3 – 4) | 150,493 | 156,738 | 150,098 | 143,435 | 140,254 |
| Energy intensity (GJ / RUB mln) | 135 | 117 | 127 | 116 | 120 |
| Indicators | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Total fuel consumption | 141,237 | 151,235 | 141,909 | 137,150 | 133,746 |
| Natural gas | 122,216 | 130,867 | 125,934 | 121,643 | 117,940 |
| Coal | 2,180 | 1,557 | 2,027 | 1,562 | 1,765 |
| Diesel fuel and fuel oil | 13 939 | 15,097 | 13,623 | 13,080 | 13,471 |
| Petrol and jet fuel | 2,902 | 3,715 | 325 | 312 | 297 |
| Lignite | — | — | — | 552 | 273 |
| Indicators | 2022 | 2023 | 2024 | Including in 2024 | |
|---|---|---|---|---|---|
| electricity | heating and steam | ||||
| Electricity and heat consumption by the Group companies (TJ) | 60,143 | 59,687 | 60,034 | 30,266 | 29,768 |
| Including: | |||||
| The Norilsk site’s production enterprise (Talnakhskoye, Oktyabrskoye, Norilsk‑1 deposits) | 31,307 | 32,991 | 33,628 | 14,604 | 19,024 |
| The Energy Division’s energy enterprise | 6,045 | 5,907 | 6,003 | 4,032 | 1,971 |
| The Kola site’s metals and mining enterprise | 9,289 | 9,097 | 8,975 | 6,199 | 2,776 |
| HPP share in total electricity consumption in the Norilsk Industrial District | 56% | 58% | 58% | — | — |
| HPP share in total electricity consumption by the Company | 51% | 55% | 54% | — | — |
| HPP share in total electricity and heat consumption by the Company | 27% | 28% | 28% | — | — |
| Share of renewables in total electricity and fuel consumption | 11% | 12% | 12% | — | — |