OREANDA-NEWS. Severstal (one of the world's leading vertically integrated steel and mining companies) and PJSC Power Machines have concluded a contract for technical upgrade of a cogeneration plant - steam blower station turbogenerator No. 5 of the Cherepovets Metallurgical Complex (a member of Severstal Russian Steel division). The cost of the contract is more than 1 bn. rubles.

The implementation of the investment project involves technical upgrade and modernization of the cogeneration plant - steam blower station No. 1 turbogenerator No. 5.

The modernization project provides for the replacement of major assemblies of the 50 MW steam turbine, as well as a complete replacement of the generator by a new one, complete with the excitation system. The Power Machines specialists will also render services involving deinstallation of the old equipment and installation of the new one. The commissioning of the upgraded turbogenerator is scheduled for the end of the year 2018.

The goal of the project is to improve the efficiency of the worn-out equipment. Using cutting-edge design solutions and technologies will increase the turbogenerator electric output power by 25 MW.

"The decision for reconstruction of the substation was made in order to improve reliability of power supply of the metallurgical complex and other division member enterprises, as well as in view of future business development at the Cherepovets Metallurgical Complex industrial site," Severstal Russian Steel division General Director Vadim Germanov commented on the joint project.

"Our task is to facilitate an increase of in-house electric power generation at the Cherepovets Metallurgical complex by 5%. Power Machines have all technical capacities and professional competencies needed to attain it," added Yuri Sunyayev, PJSC Power Machines Vice-General Director - Sales Director.

Reconstruction work will be performed on the operating power facility without interruption of consumer power supplies.

In 2014, PJSC Severstal and PJSC Power Machines united their efforts to modernize power equipment in order to increase electric and thermal energy generation. The companies' specialists became partners in the implementation of projects aimed at increasing electrical power of the existing generating equipment at the Cherepovets Metallurgical Complex (a member of Severstal. Russian Steel division).

The first project was the reconstruction of the Cherepovets Metallurgical Complex main step-down transformer substation No. 1 for which Power Machines - Toshiba High Voltage Transformers, a Power Machines enterpriseб manufactured and delivered a 220 kV, 63 MVA power transformer and performed its supervised installation.

As of the end of the 1st quarter, 2017 the share of home-generated electric energy in the total amount consumed by the Cherepovets Metallurgical Complex amounted to 81.6% (0.6% more than at the end of the first quarter, 2016).