Pulawy power station (Grupa Azoty)

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Pulawy power station (Grupa Azoty) is a power station under construction in Puławy, Lubelskie, Poland.

Location

Table 1: Project-level location details

Plant name Location Coordinates (WGS 84)
Pulawy power station (Grupa Azoty) Puławy, Lubelskie, Poland 51.416443, 21.969309 (approximate)

The map below shows the approximate location of the power station.

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Project Details

Table 2: Unit-level details

Status Fuel(s) Capacity (MW) Technology Start year
construction coal: unknown 100 unknown 2023 (planned)

Table 3: Unit-level ownership and operator details

Owner Parent
Grupa Azoty SA [100%] Grupa Azoty SA [100.0%]

Project-level captive use details

  • Captive industry: Chemicals


Background

In 2008, Swedish-based Vattenfall proposed to build a 1,620 MW coal-fired power plant in Pulawy through its Polish unit in 2008, the Pulawy power station (Vattenfall).[1] In 2010, it was reported that Vattenfall decided to cancel the project.[2]

In 2011, the rights for the power project were transferred to ZA Puławy S.A. and PGE Górnictwo i Energetyka Konwencjonalna S.A. (GiEK), who were pursuing plans for an 800-900 MW combined cycle natural gas plant instead.[3]

On December 23, 2014, Grupa Azoty purchased 100% of the shares in Puławy Power Plant from PGE GiEK, and said it planned to build a 400 MW gas plant.[4]

In April 2017, it was reported that Grupa Azoty had decided to build a 90-100 MW coal-burning power plant unit instead of the 400 MW gas-fuelled unit which had been planned.[5] The company was expected to announce a tender to build the plant in 2017. According to Polityka Insight, while Azoty Puławy said they cancelled the tender to build the gas unit because it was too large for its plants in Puławy, the decision was made when state-owned energy companies decided to financially support the merging of two coal companies, KHW and PGG.[6]

In July 2019, Grupa Azoty chose the offer of Polimex Mostostal, Polimex Energetyka, and SBB Energy to build the coal plant. Construction was planned to start in September 2019 and operation in the fourth quarter of 2022.[7] Construction began in October 2019.[8]

In September 2020 Inżynieria reported that construction on the plant was ongoing, but that there were questions over whether, once commissioned, the plant would be fueled by coal or switched to another fuel given EU climate policies.[9]

In January 2022, it was reported that Grupa Azoty Puławy rejected the application of Polimex Mostostal SA for an increase in financing by over PLN 35 million. The company implementing the project justified its request with the impact of the pandemic on the conduct of works and legislative changes. It also asked for an extension of the project implementation period by 223 days. The management board of the chemical tycoon from Puławy asked for additional documents.[10]

In September 2022, construction was projected to be completed by mid-2023.[11]

In May 2023, Grupa Azoty Puławy stated that a problem with one of the plant's steam turbines would delay the project's completion date, which was now expected to be September 30, 2023.[12][13]

In June 2023, it was reported that PKN Orlen was beginning negotiations with Grupa Azoty about potentially taking over the Puławy plant, amid Grupa Azoty's "serious financial problems".[14]

As of late December 2023, the power station was not yet operating.[15]

Financing

In July 2015, Bank Gospodarstwa Krajowego (BGK) agreed to provide funding of over PLN 1 billion (US$264 million) for the gas-fired power station project. No exact funding amount from BGK was provided.[16] Another source referred to BGK providing PLN 1.5 billion in total for all consortium banks.[17] However, this funding agreement was signed when the power station was still being planned as a 400 MW gas-fired unit. It can be assumed that most likely this financing agreement did not become effective and did not go ahead.

According to Grupa Azoty's 2022 annual report, it appeared that the construction of the coal plant is financed by via an inter-company loan. Loan agreement was executed in February 2021 between the Parent and Grupa Azoty PUŁAWY under an intra-group financing agreement for the PLN 650,000 thousand loan to be used to cover capital expenditure under the project “Construction of a coal-fired power generation unit”. The loan repayment date is June 29th 2025.[18]

Articles and Resources

References

  1. "Mapping CCS in Poland," Bellona Europa, October 2009
  2. "Vattenfall Will Not Build Two Power Plants in Poland," The Warsaw Voice, October 11, 2010
  3. "Pulawy power project enters its next stage," Pulawy, September 5, 2012
  4. "Puławy Power Plant," Elektrownia Puławy, accessed January 2018
  5. "Poland - Factors to Watch Apr 5," Reuters, April 4, 2017
  6. "Energy report," Polityka Insight, April 2017
  7. "Zakłady Azotowe Puławy select the offer of the consortium headed by Polimex Mostostal for the construction of a new power unit". Polimex Mostostal. 2019-07-24. Retrieved 2020-01-13.
  8. "Ruszyła budowa nowego bloku energetycznego w Grupie Azoty Puławy," Grupa Azoty, October 14, 2019
  9. "Co dalej z elektrociepłownią w Puławach? Potrzebna decyzja". Inżynieria.com (in polski). 2020-09-16. Retrieved 2020-12-17.{{cite web}}: CS1 maint: url-status (link)
  10. "Puławy: Grupa Azoty nie chce płacić więcej za budowę nowego bloku energetycznego," Radio Lublin, January 13, 2022
  11. "Ostatni węglowy blok energetyczny w Polsce czeka na decyzje," Wysokie Napiecie, September 23, 2022
  12. "Puławy. Kłopoty z nową elektrociepłownią za 1,2 miliarda," Dziennik Wschodni, May 31, 2023
  13. "Nie ma nowych bloków energetycznych bez opóźnień, sporów i roszczeń," Wysokie Napięcie, May 31, 2023
  14. "Orlen rozpoczął negocjacje z Grupą Azoty w sprawie przejęcia Puław," Rynek Infrastruktury, June 7, 2023
  15. ZAP Aktualizacja informacji dotyczącej inwestycji „Budowa Bloku Energetycznego w oparciu o paliwo węglowe”., money.pl, December 20, 2023
  16. Staff, Reuters (2015-07-02). "REFILE-Polish Grupa Azoty secures financing for Pulawy power plant project". Reuters. Retrieved 2020-12-01. {{cite news}}: |first= has generic name (help)
  17. BGK TO CO-FINANCE A NEW GRUPA AZOTY GROUP POWER PLANT PROJECT IN PUŁAWY, Grupa Azoty, July 3, 2015
  18. "Directors' Report on Operations 2022" (PDF). grupaazoty.com. 2023.{{cite web}}: CS1 maint: url-status (link)

Additional data

To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.