ORLEN Południe signed a letter of intent with PGNiG, which envisages strengthening their cooperation in the scope of development of renewable energy sources. The companies are planning to establish a special purpose vehicle which will invest in the development of a network of biomethane plants. The modern facilities would produce eco-friendly biomethane from agricultural and waste substrates as well as residues from the processing industry, which could then be used in industry or the energy sector. The investment would be part of the ORLEN2030 strategy, which envisages the development of low- and zero-emission energy.
“We are strengthening the competences and position of the ORLEN Group on the renewable energy market. By joining forces with PGNiG, we are developing a new business line in the area of biomethane. The great potential of this clean, eco-friendly fuel, which can become a source of green hydrogen, will enable us to achieve our strategic business goals and effectively contribute to the energy transformation of the Polish economy,” says Daniel Obajtek, Chair of the Management Board of PKN ORLEN.
The letter of intent signed by ORLEN Południe and PGNiG envisages the possibility of cooperation mainly in the scope of acquisition and construction of biomethane facilities, development of technologies used for the production of biomethane, as well as production and use of biomethane in various areas of the companies’ activity. The investments would be carried out by a special purpose vehicle established by ORLEN Południe and PGNiG, in which ORLEN Południe and PGNiG would hold 51% and 49% of shares, respectively. In order to be established, it must be approved by the President of the Office of Competition and Consumer Protection.
“The combination of resources, knowledge and experience of PGNiG and PKN ORLEN will be an important and much needed stimulus for the development of the biomethane market in Poland. The new vehicle will enable both partners to develop competences throughout the value chain. This cooperation is perfectly in line with PGNiG’s plans related to lowering emissions in the national gas sector and the dynamic development of trade in renewable gases,” stresses Paweł Majewski, Chair of the Management Board of PGNiG.
The new business line in the area of biomethane developed by the ORLEN and PGNiG Groups is based on the construction of own biogas plants and takeover of existing ones. Last December, ORLEN Południe took over an active biogas plant in Konopnica in the Rawa Mazowiecka municipality. In January, it purchased two plots of land in the Ryn municipality with the intention of building its own facility there. In March, it finalised the purchase of an agricultural biogas plant in Wojny-Wawrzyńce in the Szepietowo municipality. The company plans to expand these facilities and transform them into plants which generate biomethane which would be pumped into the distribution network and could be potentially used to produce green hydrogen.
The signed letter of intent is the result of analyses carried out by the companies on the production of biogas purified to reach biomethane parameters. The aim is to create a business environment and scientific and technological base for the development of a network of biomethane plants, each of which will produce approx. 4 million cubic metres of biomethane per year.