Pulawy’s Power Plant getting closer

| Prospects & Investment |

In recent days, the media shared the information about the contract announced by Pulawy’s Power Plant. The main subject of the contract is the construction of gas-steam power plant with 800-900 MW capacity in Pulawy.


The winner of this project will have to design, supply, construct and start of the power plant and related facilities. The Plant is strict for the further development of the Pulawy Company as it is going to provide electricity, process steam and heating water, which are used in the manufacture of chemicals and fertilizers.

The company’s shareholders are Pulawy Company and PGE Mining and Conventional Power Generation. The project provides for the location of the object on the right bank of the Vistula River, in the municipality of Pulawy community. The power plant is directly adjacent to Zaklady Azotowe. Thanks to that solution it will be possible to reduce the cost of energy transfer. At this stage, the assumed cost of the project is about PLN 3 billion. In June 2012, our company has given a promise to the project completion, in the amount of PLN 1.3 billion net, representing 50 per cent of the estimated value of the investment. Currently, we assume that the electricity from the new power plant will flow to Pulawy Company in 2017, and since early 2018 commercial operation is scheduled to begin.


For many years, we were trying to accomplish this project. The current situation in the markets and financial stability of Pulawy Company allows to proceed with more determination to the implementation of the earlier assumptions. Currently operating thermal power station at Pulawy Company, covers 40 per cent of the electricity demand. In the future – taking into account Pulawy’s development – the heat production deficit could occur without the new power plant. An important benefit from the construction of gas-steam power plant will be the increase in the processing efficiency of chemical into electrical energy. The new investment will use combined-cycle system, which exceeds the values achieved in the classic, conventional coal-fired power plant.


The construction of gas-steam power plant fits well the environmental strategy, implemented for many years by the Pulawy Company. An important benefit from the construction of gas-steam power plant is much lower pollution emission than in case of the coal-fired power plants. It is important to note that EU legislation becomes more and more restrictive in this respect every year, and thus imposes further restrictions on businesses. Pulawy’s Company power plant construction is an attempt to meet the planned changes in the regulations.


We do not have any doubt that the current dependence of the electricity and heat production on coal, means that in the future we can have a lot of problems with competition in the markets. Company’s strategy is based on the search for cheaper energy sources of electricity and heat. Natural gas is more expensive than coal. However, its use in power does not create problems of disposal of slag and ash. In addition, we hope that in the next few years Poland will start commercial production of shale gas. Then the investment made by the Pulawy Company will form part of the national strategy of energy emancipation, from the supply of raw materials from abroad.