22.05.2009

Bioethanol - PKN ORLEN to announce invitation to tender

BIOETHANOL – PKN ORLEN TO ANNOUNCE INVITATION TO TENDER In a few days, an invitation to tender will be announced for the delivery of bioethanol for PKN ORLEN companies in their home markets for the period from October 2009 to September 2010.

With regard to its policy of compliance with environmental standards for the quality of fuels sold on the market, PKN ORLEN is taking steps to ensure supplies of bioethanol in Poland, the Czech Republic and Lithuania. In a few days the selected Polish and European producers will be invited to take part in a tender organized by PKN ORLEN. Detailed information on the tender process, dates and required quality standards will soon be available at the www.orlen.pl website (“Tenders” tab)

The factors that will determine the choice of the supplier will be: the quality of the product offered, compliance with formal and legal requirements set out in national laws and regulations and commercial terms and conditions. The qualification of contractors will be carried out as part of a two-stage process, i.e. in the form of an Internet auction and direct negotiations.

As a result of an increase of the National Indicative Targets for biocomponents in Poland, the Czech Republic and Lithuania, the amounts of bioethanol contracted by ORLEN will be larger than in previous years. In the period from October 2009 to September 2010 the estimated needs of PKN ORLEN will amount to:
- In Poland pure bioethanol (about 170 million litres, up to 280 million litres if the Ordinance of the Minister of Economy on the quality requirements for liquid fuels becomes effective allowing the use of increased amounts of bioethanol - E10 PN EN 228 standard)
- in the Czech Republic denaturated bioethanol (approximately 25 million litres)
- in Lithuania pure/denaturated bioethanol (approximately 24 million litres, up to 34 million litres if the E10 EN 228 standard is adopted).

The biocomponent will be used to produce a gasoline additive in the form of ethyl tert-butyl ether (ETBE) and directly as a gasoline compound.