No. 6/2022  |  02-02-2022  |  9:55

ORLEN Capital Group Hydrogen Strategy

PKN ORLEN S.A. (“PKN ORLEN”, “Company”) informs that on 2 February 2022 Company’s Supervisory Board approved ORLEN Capital Group Hydrogen Strategy 2030 (“Hydrogen Strategy”) which is more detailed part of ORLEN Capital Group Strategy 2030 in one of business areas – hydrogen as part of the plan to invest in ORLEN Capital Group future.

The Hydrogen Strategy defines ORLEN Capital Group goals by 2030 and long-term development ambitions in hydrogen area in four key areas:

• Mobility – ORLEN Capital Group as a transition leader in Central Europe, producing and providing zero- and low-carbon hydrogen as alternative fuel for transport sector and operator of publicly accessible hydrogen refuelling stations located in Central Europe. In the first stage (by 2025) focus on development of B2B market (primarily public transport ensuring stable demand volumes), next development of partnerships to creating of hydrogen corridors for long-haul heavy-duty transport; development of B2C offer and intensification of R&D activities in e-fuels area for air transport and in long term sea transport.

• Refining and petrochemicals – hydrogen as main enabler of decarbonisation of ORLEN Capital Group. Focus on cost-efficient reduction of CO2 emission of existing hydrogen production units in ORLEN Capital Group through, among others, realization before 2030 of projects in the field of carbon capture, utilisation and/or storage in selected locations. At the same time building of new hydrogen production plants based on electrolysis powered by renewable energy sources and units which convert municipal waste into hydrogen (waste-to-hydrogen type).

• Research and development, innovations and regulatory environment – advancement of research and development activities actively supporting the potential of the ORLEN Capital Group. ORLEN Capital Group as a partner of first choice for building a hydrogen economy in Central Europe: focus on creating and promoting hydrogen partnerships and the hydrogen ecosystem as well as building in-house capabilities across the hydrogen value chain supporting realizing investment initiatives.

• Industry and energy - promising direction of ORLEN Capital Group engagement as a major supplier and customer of zero- and low-carbon hydrogen within the European Hydrogen Backbone.

In was estimated that realization of activities planned by 2030 in Hydrogen Strategy will require CAPEX of ca. PLN 7,4 bn. Expenditures have been partially taken into account in ORLEN Capital Group Strategy 2030 as part of pillar: Investing in the future. The Hydrogen Strategy will consist of a series of initiatives to be realizes, the most important of which include the following projects:

• Building of over 100 publicly accessible hydrogen refuelling stations with necessary logistics infrastructure in Central Europe.

• Building new low- and zero-carbon hydrogen capacity of ca. 540 MW, including from water electrolysis powered by renewables and municipal waste to hydrogen.

• Building of units dedicated to CO2 emission reduction from existing hydrogen production units with using of carbon capture, utilisation and/or storage technologies.

Realization of above projects allow for production of zero- and low-carbon hydrogen in ORLEN Capital Group in 2030 on the level of ca. 50% of the total planned volume of hydrogen production in ORLEN Capital Group in 2030, which will lead to avoidance of ca. 1,6 mt of CO2 emission from hydrogen production yearly. 

The scale of CAPEX planned in the Hydrogen Strategy may by lowered due to use of external financing, including non-returnable, connected with innovations and energy transition.