Joint Development of Energy Conservation and Funding Policies in Metallurgy

A.V. Borodulin, V.G. Zaitcev,Yu.B. Murav'ev <rambold@ag.unity.net>

The energy intensity of gross national product in countries like Russia, Ukraine and Kazakhstan is determined by power consumption in making steel and other industrial metals to a great degree. As a result of the economic transition and the current crisis, the iron and steel industry is facing new challenges that neither science nor practice was prepared to meet. Energy conservation is defined here as those science and engineering policies and finance and economic strategies pursued by government that ensure reduction in the GNP energy intensity. A clear-cut and firm policy and a greater role of the government in pricing are needed to revitalize the investment process and overcome the deep crisis. Without the government's intervention in the investment process, the development of Ukraine's iron and steel industry in the 21st century will be doomed to failure.. A draft program for energy conservation in the industry is put forward based on mathematical modeling. It is backed by the idea of a systems solution to the issue of rational management of energy and raw materials. Sufficient attention is given to the condition of the major equipment, the stability of plants' balances of energy, trends in supplies of raw materials and power, and socio-economic standing of the steelworks in question, the industry and the nation.