ORLEN Południe from the ORLEN Group has purchased the Bioenergy Project farm-grade biogas plant in Konopnica with a plan to convert it into a biomethane production plant. To secure a supply chain, the group also purchased Biozec, a company which sells and distributes the heat generated by the biogas plant. The project is complementary with ORLEN Południe’s strategy of building a new business line devoted to biogas production. According to this strategy, the production capacity of the acquired assets will be increased to about 7 million cubic of biomethane a year.
– We approach the power engineering transformation as an opportunity to enter new business segments. According to the new strategy by 2030, we have been building an economically and energy-efficient system of renewable energy sources. The development of biogas activities is in line with these assumptions. At the same time, we have been strengthening the competences and market position of ORLEN Południe, a company from our group, which has now expanded its portfolio by another bioproduct - said Daniel Obajtek, the President of the Management Board of PKN ORLEN.
The 1.99 MW biogas plant in Konopnica in the Rawa Mazowiecka municipality was commissioned in January 2012. The raw material used in the fermentation process are apple juice pressing residue, as well as other materials, such as currants. The plant has taken advantage of its beneficial location, among vast orchards. This means that the production facility has constant access to raw materials needed for biogas production. The installation is currently used for producing electricity and heat on the local market. ORLEN Południe is planning to convert it into a biomethane production plant used for manufacturing and distributing biomethane to recipients through a distribution network. The objective is to extend the production plant to about 7 M cubic meters of biomethane a year, which may take place in 2022.
Apart from purchasing highest-quality assets, the transaction will allow ORLEN Południe to attract qualified personnel required for the effective development of the company as part of the network of agricultural biogas manufacturers.
The acquisition of Bioenergy Project is the first transaction carried out as part of a pilot program to acquire biogas production companies. Next to the acquisition and modernization of existing facility, the program aimed at creating a new business line also assumes the construction of in-house installations. A letter of intent in this respect was signed with H.CEGIELSKI-POZNAŃ, National Center for the Support of Agriculture and the University of Natural Sciences in Poznań. The project assumes the construction of biogas plants on farms which are currently ran by companies with ownership supervision performed by the National Center for the Support of Agriculture (KOWR). In the future, these farms could be purchased or leased from KOWR by ORLEN Południe. As per the memorandum, H.CEGIELSKI-POZNAŃ would build the biogas plants. The company owns a license to manufacture innovative biogas plants based on a Polish patent belonging to Dynamic Biogas. The structure developed by H.CEGIELSKI-POZNAŃ is technologically superior to the competitive solutions available, which creates a vast potential for the domestic development of this form of renewable energy sources.
ORLEN Południe has been consistently transformed into a modern bio-refinery, where ecological investments are implemented. The construction of Poland’s first and Europe’s largest green propylene glycol production installation is underway in Trzebinia, together with a pilot installation for producing lactic acid using microorganisms. The company is planning to build a second generation bioethanol production installation in Jedlicze. Furthermore, the Trzebinia plant is also developing a hydrogen fuel production installation running on biomethane, among others.