Four bids for the construction of “Puławy” Power Plant

| Polish Market |

Four bids submitted in the tender were opened in the office of “Puławy” Power Plant Company on January 31st, 2014, at noon. This formal step brings us closer to the implementation of this investment, which is of crucial importance to us. “Puławy” Power Plant will neighbor with Grupa Azoty “PUŁAWY” premises, one of the entities implementing the project. The other partner is PGE Górnictwo i Energetyka Konwencjonalna S.A.

Launch of the construction in 2015

The construction of “Puławy” Power Plant is scheduled for 2015. However, in 2014 we are going to know name of the contractor chosen in the current tender procedure. Four companies which have made preliminary offers include Alstom Power, General Electric International, Siemens and SNC-Lavalin.

Energy for growth

The construction of a combined cycle power plant is an essential investment for our Works, being in line with the environmentally-friendly strategy of the company. The start-up of “Puławy” Power Plant will not only help decrease the electricity deficit in Lubelskie voivodeship, but also improve energy supply safety in the whole country.

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It’s smart to bet on gas

| Production & Resources |

The growing demand for electricity is forcing Polish enterprises to look for new, cheaper and more efficient resources. These include natural gas, which is becoming more and more widely used in power plants.

Coal is not enough

A key element causing such shift in the approach to energy policy is ensuring the security of power supply at peak times (6:00 to 13:00 and 15:00 to 22:00). A power plant using coal needs c. 12 hours to reach the requisite output capacity. However, a gas power plant requires as little as 90 – 120 seconds before it starts to provide electricity to the network. Investments in gas power plants are clearly justified seeing that it is expected that the shortage of electricity will reach 6,000 MW in 18 months’ time.

Cheap fuel is an opportunity

European power providers are following the example of American ones. The price of natural gas on the US market is now three times lower than in Europe. As a result, the resource may be exported at competitive prices.

Currently, Polish power companies are not only active in the search of shale gas, but also waiting for the launch of LNG (liquefied natural gas) Import Terminal in Świnoujście. With a view to benefiting from cheaper gas, “PUŁAWY” is also intent on building a combined cycle power plant, making the company independent of energy coming from coal.

A crucial investment

“PUŁAWY” power plant in a joint project by Grupa Azoty “PUŁAWY” and PGE (Polska Grupa Energetyczna). “PUŁAWY” is one of the main consumers of natural gas in Poland, using c. 1 billion m3 of the resource annually, and having acquired considerable experience in purchasing and running the requisite infrastructure. PGE is the leader of Polish power supply market with the necessary potential for such a major investment. Owing to synergy of the goals and competences of both entities,there will be a new combined cycle power plant, providing electricity and heat for “PUŁAWY” and selling the surplus on domestic market.

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Who will build the PUŁAWY Power Plant?

| Prospects & Investment |

“PUŁAWY” have announced the short list of potential developers of a new combined cycle power plant. The winning bid will be chosen in the first three months of 2014.

Five entities have been picked among all the companies which offered to carry out one of the largest investment project of “PUŁAWY” in recent time. The five companies allowed to participate in the tender are: Alstom Power Sp. z o.o.; General Electric International Inc./Iberdrola; Mostostal Warszawa/Ansaldo Energia S.p.A.; Siemens Sp. z o.o./ Siemens Osterreich/ Siemens Switzerland; SNC-Lavalin Polska Sp. z o.o./SNC – Lavalin Inc./SNC-Lavalin Constructors Inc.

It is worth reminding that the power of the planned combined cycle block will reach 800-900 MWe. The project is a joint enterprise by Pulawy Company and PGE Górnictwo i Energetyka Konwencjonalna S.A. The power plant is one of crucial investments related to energy supply, which will enable to supply power on the domestic market and provide heat to the town of Puławy and for “PUŁAWY”.

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“PUŁAWY” power plant is one of the key proposals of projects concerning electricity supply in Poland. The plant would produce energy for the national power grid. It will also serve as a source of heat and energy for the installations in Pulawy Company and the whole town and region. The plant is planned to be completed and ready for work in 2017.

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Number one in the Polish chemical market

| Polish Market |

Last year will go down in history of our company, thanks to record results we have achieved. Consolidated net profit amounted to PLN 600 mln, while the unit gain amounted to PLN 596 million. We have succeeded despite of the production costs increase. This is the tenth consecutive year in which our plants end up in the black.

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