PKN Orlen Energy Efficiency & Emissions Reduction Loan

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 42609

Status Complete

Location

Poland

Business Sector

Natural Resources

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 42609

Status Complete

Location

Poland

Business Sector

Natural Resources

Notice Type

Private

Environmental Category

Approval Date

13 Apr 2011

Disclosure date

28 Jun 2011

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The EBRD has provided a loan of €250 million in the form of an energy efficiency and environmental loan. The loan will enable the Company to finance substantial efficiency improvements at a CHP plant located within its Plock refinery complex leading to reduced energy usage and emissions and increased competitiveness. The proceeds from the loan, will enable the Company to adopt BAT, and accelerate compliance with the EU Accession Treaty by 1 year. This will enable the Company to move into the top 15 per cent of the most carbon efficient installations in the EU ETS Phase III, thus saving about 142,000 tonnes of CO2/year.

Transition Impact

The TI potential of the project lies on the demonstration effect of energy and environmental management improvements at the corporate level, including

(i) compliance of the CHP plant with new EU industrial emission directives through the introduction of BAT before the regulatory deadline of end 2015

(ii) the introduction of a carbon and energy management system which could be monitored and verified; and

(iii) improvements in the energy intensity performance of the Plock refinery complex, to meet the level of the top 15 per cent most efficient installations in the EU-ETS Phase III.

This may have a positive demonstration effect to other Polish companies that are in the process of upgrading their plants to improve their competitiveness, provided it is shown that the targeted measures go beyond the norm for the sector in Poland and current Company's business practices. There may be also the potential to increase competition in the power generation market from this independent private producer, should a significant surplus of electricity from the CHP be sold on the market

The Client

PKN ORLEN S.A., the leading Polish oil refining and retail group and one of the leading integrated oil companies in the Central and Eastern European market is listed on the Warsaw and London Stock Exchanges.

EBRD Finance

Loan of €250 million.

Project Cost

€250 million.

Environmental Impact

The Project has been categorised B according to the EBRD’s Environmental and Social Policy 2008. The Environmental and Social Due Diligence (ESDD) focused on the existing CHP facility, the planned investment programme and the associated facilities, infrastructure and operations. The ESDD also reviewed PKN ORLEN’s corporate environmental, health and safety management systems and the oil refinery and petrochemical facilities and operations.

The ESDD showed that the project has been structured to meet the Bank’s Performance Requirements (PRs), and that the Company has the institutional capacity to implement the project in compliance with Bank’s PRs. The Company has valid IPPC permits for the CHP, Refining and Petrochemical installations, which were extended until mid 2015, after an independent IPPC review was undertaken in 2010.
The Bank’s ESDD and the independent IPPC review have concluded that the current operations at the refinery and the petrochemical plant are in compliance with the EU requirements as set out in the EU IPPC Best Available Techniques (BAT) Reference Documents (BREFs). Given the Poland’s transition period for implementing IPPC and LCP Directives, the CHP operations comply with Polish legislation, but do not strictly meet the EU BAT requirement.

The proposed project at the CHP plant includes all the environmental investments needed for achieving compliance with the Industrial Emissions Directive (IED) and EU Accession Treaty obligations as well as for reducing the overall energy intensity of the plant and aggregate carbon emissions from PKN ORLEN. The planned investments include, among others, the installation of new electrostatic precipitators, a flue gas desulphurization unit as well as de-NOx units on all the boilers. Through the implementation of the project, the Company will be able to achieve emission value levels in advance of the deadlines set out in the EU Accession transitional period, as well as implement the provisions of the IED before they become regulatory requirements. The project’s technical specifications go well beyond the minimum standards set out in Annex V of the IED and will result in full BAT compliance and in significant air quality improvements. The project will enable the CHP to use refinery waste by-products as fuel, which will further improve the environmental performance of the plant.

A Corporate Environmental and Social Action Plan (ESAP) has been agreed with the Company to address the findings of the ESDD. The key focus of the ESAP is on attaining specific performance benchmarks with respect to the CHP, as well as implementation of integrated and externally certified corporate energy and carbon management systems by the Group. The Company will be one of the first oil companies not only in Poland and in the CEE region but in all EU Member States to introduce such systems as part of its Integrated Management System. The Company is also committed to developing measures for reducing its energy intensity with the aim of becoming one of the best performing refineries in Europe in terms of energy efficiency.

The Bank will monitor the project and the implementation of the agreed measures through periodical site visits and an independent commissioning audit, planned in 2015.

Technical Cooperation

None.

Company Contact

Jacek Matyjasik, Director Treasury
PKN ORLEN S.A.
ul. Chemików 7, 09-411 Płock

tel. +48 24 256 50 60
fax: +48 24 365 32 52
E-mail: jacek.matyjasik@orlen.pl

Transition impact

ETI Score:35

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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