PKN ORLEN to develop a new generation bio-refinery
Today, the ORLEN Group’s ORLEN Południe signed a contract for the construction in Trzebinia of Poland’s first unit producing eco-friendly propylene glycol. The new unit’s annual capacity will be 30,000 tonnes, covering 75% of Poland’s total demand.
Propylene glycol is a safe and environmentally-friendly product, with applications in medicine, cosmetics and the food industry. The project will be carried out by a consortium of two Polish companies at an estimated cost of approximately PLN 400m.
“In line with our previous declarations, we are developing and strengthening through investments the various companies of the ORLEN family. The construction of Poland’s first unit producing environmentally-friendly glycol is a major step in transforming our plant in Trzebinia into an advanced bio-refinery. Its main focus will be on eco-friendly, high-margin products,” said Daniel Obajtek, President of the Management Board of PKN ORLEN.
The Trzebinia project will see its completion in 2021 and will be constructed by a consortium formed by two Polish companies: Technik Polska Sp. z o.o. and Biproraf Sp. z o.o. The turnkey contract provides for engineering, procurement and construction of a propylene glycol unit (1.2 – MPG) together with auxiliary systems and additional infrastructure.
The construction of Poland’s first unit for the production of environmentally-friendly propylene glycol will strengthen ORLEN Południe’s position both as a player on the Polish biocomponents market and an employer in the region. Today ORLEN Południe has a workforce of over 650, more than a half of them employed at the refinery in Trzebinia. After the unit is placed in commercial operation in 2021, several dozen new jobs will be created.
The manufacture of eco-friendly propylene glycol will help utilise Trzebinia’s glycerine output, which is a by-product of biodiesel obtained mainly from rapeseed oil. The project will also benefit other Polish biodiesel producers, from whom ORLEN Południe will source glycerine following project completion.
The project can be pursued thanks to the company’s
sound financial condition: in 2018 ORLEN Południe posted a net profit of
PLN 89m. The propylene glycol unit, as the first project in ORLEN
Południe’s history, has qualified for inclusion in the Polish Investment
Zone programme by the Kraków Technology Park.
The propylene glycol output will be sold both to Polish and foreign companies.