ORLEN & KGS partner to build nationwide biomethane portfolio in Poland

ORLEN and Krajowa Grupa Spozywcza (KGS), Poland’s largest state-owned agri-food group, have entered into a memorandum of understanding to develop a nationwide biomethane portfolio. Under the new agreement, the parties will, inter alia, construct biomethane production facilities. The project is expected to curb CO2 emissions, strengthen Poland’s energy security and independence, and enhance overall grid stability.

The memorandum between ORLEN and KGS provides for joint optimisation of in-house resources – including agricultural and post-production waste – and for securing farmland on which to apply digestate, the nutrient-rich by product of agricultural biogas plants, as fertiliser.

The partners also plan to jointly scale biomethane production. The initial step will be to identify sites that meet the technical and commercial criteria for biomethane facilities – starting with plots owned by KGS, while keeping other suitable locations under review. ORLEN and KGS will likewise cooperate on the production and distribution of biomethane, including the securing of all requisite administrative consents and certificates of origin for the fuel.

“Biomethane production is a textbook circular-economy solution: it converts waste into fuel and generates measurable value for both local communities and the wider national economy. As a low-carbon substitute for natural gas, biomethane is integral to the energy-transition agenda – particularly the decarbonisation of transport. Our partnership with Krajowa Grupa Spozywcza, a company central to Poland’s food security framework, therefore marks a further material milestone in delivering the ORLEN Group’s strategic objectives,” commented Grzegorz Bujnowski, Executive Director for Gas Trading, ORLEN.

“Investing in biogas and biomethane is a logical extension of our innovation and sustainability-led growth strategy. Our logistics platform and reliable feedstock streams allow us to convert post-production residues into clean energy. Partnering with ORLEN accelerates the green transition across the entire agri-food value chain. By pooling our competencies, we bolster energy security, cut our carbon footprint and create new jobs supporting the development of local communities,” said Olga Adamkiewicz, Member of the Management Board, Krajowa Grupa Spozywcza.

ORLEN Group is consolidating its position as the region’s leading alternative-fuels player through a capital programme spanning HVO, bio-ethanol and biomethane projects. By 2035 the Group plans to deploy up to 0.24 billion m3 of biomethane per year towards meeting its National Indicative Target. The volume will be sourced from wholly-owned biomethane plants, joint-venture facilities and offtake agreements.

Through its subsidiary PGNiG BioEvolution, ORLEN Group is constructing Poland’s first biomethane plant with an integrated bio-LNG module in Glabowo, Warmia-Masuria Province. The facility will have the capacity to produce more than 7 million m3 of biomethane per annum, which will be liquefied for use as fuel in heavy-duty vehicles. The Group already operates three agricultural biogas plants in the municipalities of Konopnica (Lódz Province), Buczek (Kuyavian-Pomeranian Province) and the village of Wojny-Wawrzynce (Podlaskie Province).

Krajowa Grupa Spozywcza is Poland’s largest state-owned operator in the agri-food sector. The Group commands substantial biomass feedstock and farmland nationwide, ensuring efficient utilisation of digestate as fertiliser. KGS’s mission is to strengthen Polish agriculture by integrating primary production with processing and by enhancing the sector’s international competitiveness.

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ALCHEMPro News Desk (HU)