ORLEN Group’s RES portfolio to increase by 30 per cent.
New RES installations, the first publicly available hydrogen station, progress on Baltic Pipe or the expansion of the LNG Terminal in Świnoujście – ORLEN Group is not slowing down its investment pace. In the first half of 2024, it allocated as much as PLN 14 billion to projects supporting Poland’s energy transition.
Presentation of ORLEN Group’s consolidated results for the second quarter of 2024 (LIFO EBITDA of PLN 11.3bn, revenues of PLN 69.5bn) provided an opportunity to summarise the Company’s current investments, which are not in short supply. The Group is consistently pursuing its strategy of increasing capacity in renewable energy and developing infrastructure based on so-called fuels of the future. And this despite unfavourable market trends, such as a drop in refining and petrochemical margins, differential and electricity and gas prices.
In July, ORLEN Wind 3 signed a preliminary agreement with EDP Renewables Polska for the acquisition of two photovoltaic farms, located in the Lubuskie and Wielkopolskie Voivodships, with a total capacity of 280 MWp, and a wind farm with a capacity of 26 MW, located in the Łódzkie Voivodship. The transaction, valued at approximately PLN 1.15bn, will enable ORLEN Group to increase its power generation capacity from renewable sources by almost a third. The new installations are to produce approximately 400GWh of energy annually, i.e. as much as is consumed by nearly 182,000 households. The acquired assets are not only among the most modern but also the most efficient wind farms in Poland.
Energa Green Development (EGD), a company within the ORLEN Group, is also active on the RES market. It operates 50 projects related to the development of renewable energy sources. The power obtained from the company’s own installations already reaches almost 700 MW, and this value will double thanks to the implementation of acquisition projects. EGD’s largest project is the construction of the PV Kotla photovoltaic power plant in Lower Silesia, with a planned installed capacity of 130 MW. The energy produced there will power more than 60,000 households.
ORLEN Group’s investments will also allow groundbreaking changes to be made to our district heating system. The decarbonisation of this traditionally carbon-intensive infrastructure will be based on heat generated from gas and renewable energy, recovery of waste heat from wastewater, flue gases and cooling systems, and heat accumulators. By 2035, ORLEN’s district heating assets in the Warsaw conurbation: the Żerań, Siekierki and Pruszków CHPs, as well as the Wola and Kawęczyn heat plants, will have completely moved away from coal. The effect of implementing the plan will be to reduce CO2 emissions by almost 3 million tonnes, or 55 per cent, compared to 2019.
The first half of 2024 was also marked by the Group’s involvement in key initiatives that are expected to contribute to a leap in our country’s energy security and independence. These include Baltic Power: the most advanced offshore wind power project in Poland and at the same time the largest renewable energy investment in Central Europe. With the completion of construction, in 2026, Baltic Power will cover up to 3 per cent of the country’s energy needs, while reducing CO2 emissions by some 2.8 million tonnes per year.
Poland is also becoming a Central European gas hub, thanks to the expansion of the LNG Terminal in Swinoujscie and the launch of a second gas port in the Bay of Gdansk planned for 2028. With these investments, the combined annual capacity of both facilities will reach over 14 bcm of natural gas in a volatile state. To date, ORLEN has received 23.6 million tonnes of LNG (over 31.2 bcm of natural gas in a gaseous state) via its port infrastructure – which corresponds to over six years of gas demand from all Polish households using this fuel.
ORLEN is also intensifying its activities in the area of fuels of the future, which include hydrogen. In June, the company launched its first all-Poland, 24-hour hydrogen station in Poznań, where cars, trucks and city buses can be refuelled. Later this year, it will be possible to use the ORLEN hydrogen station in Katowice. Further facilities will be opened in Bielsko-Biała, Gorzów Wielkopolski, Wałbrzych, Kraków, Włocławek, Gdynia, Piła and Warsaw. These stations will be built as part of Stage II of the Clean Cities – Hydrogen Mobility in Poland project. A further 16 stations are planned to be built in Stage III, for which ORLEN received a record EU grant of EUR 62m in April.
The Group’s stable financial position and investment dynamics have been recognised by international experts: Indeed, ORLEN maintained its highest ever ratings: A3 (awarded by Moody’s Investors Service) and BBB+ (issued by Fitch Ratings).
Source: PortalMorski.pl
