Cutting-Edge Gas-Fired Power Plant by ORLEN Group to Bolster Energy Security in Poland

Cutting-Edge Gas-Fired Power Plant by ORLEN Group to Bolster Energy Security in Poland

(IN BRIEF) ORLEN Group is constructing a cutting-edge 560 MW gas-fired power plant in Grudziądz, Poland. This advanced facility aims to provide electricity to around one million households while effectively integrating renewable energy sources. With a highly flexible Combined Cycle Gas Turbine (CCGT) unit, the plant will contribute to CO2 emissions reduction without compromising power supply reliability. The construction is managed by a consortium of Siemens Energy and Mytilineos, and the plant is expected to be operational by 2025. The project aligns with ORLEN Group’s strategy to expand its gas-fired power capacity and optimize natural gas supply.

(PRESS RELEASE) PŁOCK, 19-May-2023 — /EuropaWire/ —  PKN ORLEN (WSE: PKN), a Polish oil refiner and petrol retailer, announces that it has commenced construction on a state-of-the-art 560 MW gas-fired power plant in Grudziądz, positioning it as one of Europe’s most advanced facilities of its kind. The plant is expected to provide electricity to approximately one million households while working seamlessly with renewable energy sources, thereby reducing CO2 emissions without compromising the reliability of electricity supply.

“The ORLEN Group is pursuing the most ambitious energy transition strategy in our region. The goal is emission neutrality, therefore wind and PV farm generation will be complemented by state-of-the-art highly flexible gas-fired power plants, capable of responding quickly to changes in RES generation. This will make it possible for us to ensure a stable electricity supply to consumers regardless of weather conditions or time of day. In doing so, we rely on cutting-edge solutions to ensure high operational efficiency, reliability and cost-effectiveness. The CCGT unit to be built in Grudziądz, with an efficiency exceeeding 60 percent and which can be put into operation in just 30 to 90 minutes, will be just that“, says Daniel Obajtek, President of PKN ORLEN’s Management Board.

In Poland’s power system, start-up time is a critical factor for balancing operations, especially with the variability of renewable energy generation. The CCGT unit being built by CCGT Grudziądz, a subsidiary of ORLEN Group’s Energa, is designed to achieve exceptional performance, enabling it to effectively contribute to the country’s energy security.

The construction contract for the 560 MW power plant was signed in May 2022. Presently, the piling, reinforcement, pouring of foundation slabs, and development of supporting infrastructure are underway. The completion of foundation work for the plant’s core components, including gas and steam turbines and a generator, is scheduled for the next quarter.

Prefabricated reinforcing steel, anchoring elements, and heat recovery steam generator components are being manufactured in Poland and abroad to support the construction. Overall, the progress of the project is estimated at nearly 20 percent, with design work at around 70 percent. The foundation work for key equipment is projected to conclude in the first half of 2024, and the plant is set to become operational in 2025.

The investment project is managed by a consortium comprising Siemens Energy and Mytilineos, utilizing cutting-edge technology to ensure high efficiency, availability, and operational flexibility. Safety has been a top priority, with approximately 80,000 accident-free man-hours logged on-site thus far. Currently, the project employs around 80 people, which is expected to increase to approximately 600 during the peak installation phase.

,,We are one again cooperating with the ORLEN Group by building a power plant and deliver a high-efficiency gas and steam unit. The investment in Grudziądz is an extremely significant milestone on Poland’s map towards decarbonisation the energy sector in our country, which will be reflected in reducing CO2 emissions. In the future, our technology will allow for the co-combustion of a mixture of gas and hydrogen, ultimately only hydrogen, thus ensuring the security of electricity supplies”, says Grzegorz Należyty, Vice President Eastern Europe & Managing Director of Siemens Energy in Poland.

,,Mytilineos Energy & Metals has a vast experience in the construction of state-of-the-art CCGTs, both for major clients and for the company itself, helping countries and entities to reduce greenhouse emissions towards a “cleaner” future.” Οur goal is continuous development and growth centered around the return of value for our stakeholders, our people and the communities we reach. We are proud to be working with local contractors and to employing most of our workforce on this site among Polish talents”, adds Kostas Horinos, Executive Director for Power Projects at Mytilineos.

The construction process will involve pouring around 30,000 m3 of reinforced concrete, using approximately 10,000 tonnes of reinforcing and structural steel, over 500 tonnes of pipes, and more than 400 km of cables. The turbine set alone will weigh over a thousand tonnes.

In December 2021, a 17-year capacity market contract was signed with the Transmission System Operator, ensuring a revenue of at least PLN 3.5 billion for the Grudziądz power plant, which secured a total contracted capacity of 518 MW.

As one of Poland’s largest and most advanced projects, the Grudziądz power plant aligns with ORLEN Group’s 2030 strategy of expanding the energy segment through renewable power generation and stable, low-emission sources. The Group aims to increase the installed capacity of its gas-fired power plants from 1.7 GW to 4 GW by 2030. Together with the parallel CCGT unit in Ostrołęka, the Grudziądz power plant will provide a combined capacity of 1.3 GW.

To support gas-fired power generation, the ORLEN Group focuses on securing sufficient volumes of natural gas. The Group extracts gas domestically and from sources like Norway, which can be supplied to Poland through the Baltic Pipe pipeline. In 2022, the Group’s extraction amounted to 7.7 bcm of gas, covering around 45 percent of domestic demand. Additionally, the ORLEN Group has contracts for gas supply from international partners and long-term contracts for liquefied natural gas (LNG) from the United States and Qatar. The Group is also developing its own advanced gas carrier fleet to optimize LNG transport.

Media contact:
media@orlen.pl

SOURCE: PKN ORLEN