PKN ORLEN implements remedies in accordance with the EC Decision
PKN ORLEN has signed an agreement to sell 100% of shares in LOTOS Biopaliwa to Rossi Biofuel as part of implementation of the remedies approved by the European Commission in connection with the closed acquisition of Grupa LOTOS. Work is also underway to finalise agreements with other partners. PKN ORLEN is in the process of building a strong multi-utility group that will be the leader of energy transition in Poland and in the region and will ensure stable supplies of energy for the economy and customers.
In addition to the agreement to divest 100% of shares in LOTOS Biopaliwa, PKN ORLEN has also entered into a four-year contract for the purchase of biocomponents made in Czechowice-Dziedzice.
The core business of the Czechowice-Dziedzice-based LOTOS Biopaliwa is the production of fatty acid methyl esters (FAME) based on rapeseed oil used as a biocomponent for diesel. Previously, the sole customer for all FAME produced by the company was PKN ORLEN (and before August 1st 2022 – Grupa LOTOS). Around 10% of LOTOS Biopaliwa’s output is glycerine, which is sold to customers in Poland and abroad (Germany, the Czech Republic, and Austria).
The buyer of the LOTOS Biopaliwa shares is Rossi Biofuels, a joint venture of Envien International (75%) and MOL (25%). The former is a corporate group with extensive experience in biofuels, operating in Central and Eastern European markets (Slovakia, the Czech Republic, Hungary, Switzerland and Croatia) but with no prior presence in Poland.
In parallel, work is underway to finalise agreements with Saudi Aramco (refining, wholesale and aviation fuels), the MOL Group (retail) and Unimot (bitumens and logistics). Execution of final agreements with the buyers named above or entry into force of conditional agreements should take place within six months of their approval by the European Commission, that is by December 20th 2022.