Nornickel, Russia’s largest metals company and the world’s leading producer of refined nickel and palladium, and Ecofes, a Russian water purification equipment manufacturer, have completed industrial testing of palladium-enhanced electrodes that reduce power consumption by 18.6% in sodium hypochlorite production for water treatment facilities. The first commercial installation of 560 palladium anodes is now operational at Rostov-on-Don water treatment facilities in Russia, demonstrating nearly double the service life of conventional electrodes while maintaining comparable costs.
Technology Breakthrough Reduces Energy Consumption
The palladium-coated electrodes operate in electrolysis units that convert ordinary salt, water and electricity into sodium hypochlorite, a disinfectant that can replace hazardous chlorine gas in drinking and wastewater treatment. Engineers developed a new active coating composition that reduces operating voltage in electrolyzers while increasing overall efficiency of disinfectant production.
The technology addresses a critical cost factor in water treatment, as electricity represents up to 30% of hypochlorite production expenses. The 18.6% reduction in power consumption per ton of sodium hypochlorite produced translates directly to lower utility costs for water treatment facilities. Research shows that palladium-based electrodes can achieve current efficiencies of 84-93% for sodium hypochlorite production with service lives exceeding 1000 hours.
Accelerated testing methods show the new electrodes last almost twice as long as conventional alternatives, reducing maintenance requirements and production downtime. The enhanced corrosion resistance extends intervals between repairs, providing water utilities with reduced energy costs and less equipment downtime.
Commercial Deployment Shows Cost Savings
Ecofes calculates that Rostov-on-Don water utility will save up to 12.2 million rubles ($130,000) annually on electricity costs alone, excluding reduced repair expenses. Scaling across Russia’s entire water supply and sewage sector could generate savings of up to 1.5 billion rubles ($16 million).
The technology eliminates risks associated with storing and transporting gaseous chlorine by enabling on-site reagent production. This removes hazardous production facility operations within urban areas while maintaining effective water disinfection capabilities.
Dmitry Korolev, project manager at Nornickel’s Palladium Technology Center, noted that palladium’s catalytic properties enable disinfection of larger water volumes with reduced power consumption. The low overvoltage of chlorine reactions directly contributes to decreased energy requirements.
Market Expansion and Industry Applications
Ecofes is launching serial production of the palladium electrodes and recruiting customers among large water utilities across Russia. The company plans to expand testing to installations using seawater in cooling circuits of thermal and nuclear power plants, where electrodes operate under particularly harsh conditions.
The technology could establish new industry standards for facilities seeking cheaper and safer disinfectant production compared to gaseous chlorine systems. Testing results at power plant facilities will determine broader industrial applications beyond municipal water treatment.
Nornickel has allocated $100 million for research and development of palladium applications by 2030, with the company expecting to introduce over 100 new materials to create demand for at least 40,000 tons (1.41 million ounces) of palladium annually. The water treatment application represents part of this broader strategy to develop new markets as automotive demand faces pressure from electric vehicle adoption.
Company Background and Market Context
Nornickel operates extensive mining and smelting operations primarily in the Norilsk region of Siberia, producing approximately 40% of global palladium supply. The company has been diversifying its portfolio through technology applications for its platinum group metals beyond traditional automotive and jewelry markets.
Ecofes specializes in manufacturing water purification equipment and electrochemical systems for municipal and industrial applications across Russia. The company focuses on developing environmentally safe technologies for water treatment and disinfection solutions.
The collaboration represents Nornickel’s efforts to develop new applications for palladium beyond traditional automotive catalysts and jewelry. As global palladium demand faces uncertainty from electric vehicle adoption reducing automotive catalyst requirements, industrial applications like water treatment offer alternative growth markets for the precious metal.
Palladium prices have experienced volatility in recent years, currently trading around $953 per ounce as of January 2025, down from peaks above $3,000 in February 2022. The metal’s unique catalytic properties make it valuable for industrial processes requiring efficient chemical reactions, with water treatment representing a growing application sector as municipalities seek cost-effective disinfection solutions. Market analysts project palladium to trade in a range of $800-1,200 per ounce in 2025, with fundamentals expected to weaken due to oversupply and declining automotive demand.
