The ORLEN Group will build a complex of installations for the production of next-generation bioethanol from cereal straw. This ecological investment will be implemented at the Jedlicze plant, owned by ORLEN Południe, and will be the first of its kind in Poland and the second in Europe. Its capacity will reach 25,000 tons of bioethanol per year. The use of this modern bioproduct in transport, as an additive to gasoline, will contribute to the Group meeting the National Indicative Target. It will also be another important step for PKN ORLEN towards achieving carbon neutrality by 2050. The investment, valued at approximately PLN 1.12 billion, will be completed in the fourth quarter of 2024.
– We are a regional leader in the production of next-generation biofuels and are consistently strengthening our position in this area. The implementation of the project in Jedlicze will be of great importance for the ORLEN Group. It will allow us to expand our portfolio with another modern and environmentally friendly bioproduct, develop competencies, and create specialized jobs. Our investment also means benefits for the Polish economy, as it will contribute to the realization of the National Indicative Target, which is systematically increasing. Farmers from south-eastern Poland, with whom we will establish cooperation, will also benefit from it – says Daniel Obajtek, CEO of PKN ORLEN.
Bioethanol is an ethyl alcohol obtained from biomass. It serves as an additive to gasoline, allowing it to be used in transport. The production facility to be built in Jedlicze will be the second of its kind in Europe. The first is located in Romania.
The implementation of the complex will strengthen ORLEN Południe’s position as a leader in the domestic biofuel market, as well as an employer in the region. Approximately 50 new jobs will be created at the refinery, including for specialists in advanced biotechnologies. The investment in bioethanol production is another example of strengthening the competencies of companies within the ORLEN Group. As a result of ongoing development projects, ORLEN Południe currently has a stable financial situation, with the company’s profit in 2021 amounting to PLN 261 million.
Bioethanol will be produced from non-food products, primarily cereal straw. Due to the launch of the installation, the annual demand for this product is estimated at approximately 150,000 tons. As part of the investment in Jedlicze, a main bioethanol production plant, a biomass combined heat and power plant, and auxiliary infrastructure will be built. The value of the main installation will be approximately PLN 550 million. ORLEN Południe has signed a contract for its construction with the Polish company Zarmen.
In turn, the contractor for the biomass combined heat and power plant, valued at approximately PLN 170 million, is the Finnish company Valmet Technologies Oy. Electricity and heat will be generated in a 48 MW biomass boiler, fueled by lignin, which is a byproduct of bioethanol production. The company will obtain approximately 90,000 tons of lignin annually. All energy will be used for the needs of the bioethanol complex.
In the next stage of the investment, a modern biogas plant will also be built. It will process post-distillation residue, which is also a byproduct of bioethanol production. The renewable energy obtained in this way will also power the new installation. Furthermore, there are plans to modernize the road and rail infrastructure within the plant and build the necessary auxiliary infrastructure.
The ecological investment to be built in Jedlicze has received PLN 45.8 million in funding from the National Fund for Environmental Protection and Water Management for the energy hub of the bioethanol production installation.
ORLEN Południe is being consistently transformed into a modern biorefinery, where production is based on renewable energy sources. In November last year, the largest ecological glycol production plant in Europe was launched at the Trzebinia facility. The company is also investing in a biogas program, under which a network of biomethane plants is being built across the country. ORLEN Południe has also invested in a pilot installation for the production of lactic acid. Furthermore, the company has become involved in the development of hydrogen technology. This year, the first deliveries of hydrogen fuel for bus refueling will be carried out from the Trzebinia plant.
Source: PKN ORLEN