ENERGA will organize the construction of the CHP plant and hold a majority interest in a special purpose vehicle established for that purpose. Accordingly, following the completion of 10+ Programme, the CHP plant will provide electricity and steam for the expanded refinery.
The modern CHP plant will also contribute to the energy balance of Pomerania region as well as to the national energy security.
The facility will be the second largest, electricity capacity-wise, gas-fired CHP plant in Poland. Its annual heat production is to exceed 5 million GJ, while the electricity production is to exceed 1.5 million MWh. This means additional 1.05 million MWh for the electricity market (allowing for the energy needs of LOTOS Group). The produced energy will suffice for no less than 330,000 households.
The annual plant’s demand for natural gas is estimated at 370 million Nm3. The planned technological solutions will be characterized by a low environmental footprint, in line with the EU Climate and Energy Package.
Due to the high purity of gaseous fuel, pollution in the form of sulfur oxides or dust will be virtually non-existent, while carbon dioxide emissions of the plant will be 40% lower than those generated by a coal-fired plant having the same capacity.
Pawel Olechnowicz, president of LOTOS, said “This investment project gives us an opportunity to implement other development programmes at our refinery in Gdansk. The new consortium is another important step in the, vital to the region and energy sector companies, cooperation efforts, whose first result will be the planned CHP plant.”
Miroslaw Bielinski, president of ENERGA, said “The construction of new energy production facilities is a part of our development strategy. In the case of this investment project, it is particularly important that the plant will be constructed in the region with the highest electricity deficits, therefore improving the energy security of Pomerania region, all the more so in the light of the fact that we are planning further similar undertakings.”
Michal Szubski, president of the management board of PGNiG, said “Increased natural gas sales and expansion of the company operations to electricity projects are both important elements of our strategy. Through our involvement in this project, we gain a long-term customer for natural gas, which is important in the context of the expansion of the natural gas market in Northern Poland, especially in relation to the construction of the LNG terminal in Swinoujscie.”
More than 75% of the project’s worth will be financed by loans secured by long-term contracts warranting, respectively for each security interest, the deliveries of natural gas (PGNiG), purchases of heat and electricity (LOTOS) and purchases of electricity (ENERGA).
The companies also agreed to establish a special purpose vehicle for the project which will be directly responsible for the construction of the CHP plant. The shares in the SPV will be held by, ENERGA Group (60%), LOTOS Group (20%) and PGNiG (20%).
The signed schedule sets forth the following stages for the project implementation, preparation of feasibility study for the project, end of 2009, establishment of the SPV, beginning of 2010, preparation of documentation and bidding specification, fall 2010, award of an EPC/turnkey contract, spring 2011, CHP launch, fall 2013.