Severstal said it has started building the central hub of a pellet production complex at its Cherepovets plant in a 97 billion ruble plan to introduce high-quality steel production technology with a low carbon footprint.

The project is expected to begin operations in 2026, said Evgeny Vinogradov, general manager of general director of Severstal Russian Steel Division and Resource Assets.

The project will provide iron ore raw material (pellets) for blast furnace production at the Cherepovets plant while replacing existing units that have a negative impact on the environment.

With the changes in pig iron production technology, carbon dioxide emissions will be reduced by more than 2 million tons and other pollutants will be reduced by 96,000 tons per year.