Dmitry Pumpyanskiy: Metals industry will see a major transformation as it decarbonizes
Getting the metals industry to go green will involve a vast and costly transformation, said Dmitry Pumpyanskiy, Chairman of TMK’s Board of Directors, at the 18th International Steel Summit Russian Steel: Growth Strategy held at TMK’s Volzhsky Pipe Plant.
“Decarbonization is now a hot topic for the global community and the steel industry in particular. The steel industry has been tackling this challenge quite well, as unique waste-free recycling capability gives steel a competitive edge over other materials. Yet, large amounts of carbon from various steelmaking processes make decarbonization of the steel industry and steel products very relevant. We are entering a phase of deep transformation that will require substantial investment,” said Dmitry Pumpyanskiy.
He added that moving to a low-carbon economy will affect the cost competitiveness of steel products. This transformation may call for measures such as developing new carbon steel grades, drafting new standards, redesigning production processes, introducing green certificates and shifting to contracts for difference (CFD). Some decisions will need to be made at the state level and formalized through intergovernmental agreements.
TMK’s ESG strategy and investment programs all have decarbonization as a top priority. By successfully delivering on a major modernization program between 2006 and 2019, TMK fully moved all its plants to electric arc furnace production, a more environmentally friendly process that uses scrap metal, and boosted gas cleaning efficiency to 99% through the implementation of advanced solutions. All these measures have enabled TMK to halve emissions from its operations. Currently, TMK is developing its Greenhouse Gas Reduction Strategy to 2030.
The Russian Steel Summit, set up by Eurasian Metals magazine in 2003 at the suggestion of the Russian Steel Association, is the leading discussion platform for Russian iron and steel manufacturers. Every year, it brings together national industry leaders, their international partners, state agencies, enterprises and organizations actively cooperating with metal makers. Since 2019, the Summit has been hosted by various steel producing regions.