On 19 December 2012 TAURON Polska Energia and Polskie Górnictwo Naftowe i Gazownictwo signed a letter of intent concerning construction of approx. 400MW gas-fired CHP unit in the area belonging to TAURON’s Łagisza power plant. The parties declared cooperation in the scopes of construction and operation of the unit as well as electricity trading.
The gas-fired CHP unit at Łagisza would be the second investment executed by the parties, next to the CCGT unit at Stalowa Wola whose construction has already started. The unit will have high efficiency (approx.. 58%), zero dust emission, low emission levels of SO2, NOx and CO2.
”Both TAURON and PGNiG are interested in generation of electricity based on natural gas. We are satisfied with our cooperation so far, and preparations to the construction of the CCGT unit at Stalowa Wola have turned out to be a positive experience, that is why we decided to start works related to execution of another investment”, said Dariusz Lubera, President of the Management Board at TAURON Polska Energia. “The gas-fired unit at Łagisza is in line with our strategy stipulating fuel diversification and capacity restoration, as in 2017 it will replace the 120MW units operating now at the power plant that are scheduled to be closed down.”
PGNiG’s strategy stipulates extension of the value chain and the scope of operations by adding electricity generation based on natural gas, and electricity trading.
”The investment planned in the area of Łagisza power plant is a natural step in cooperation between PGNiG and TAURON. The first joint project at Stalowa Wola allowed us not only to develop a model of cooperation that will be applied again, but also to develop trust and understanding between our companies. That enables us to hope for very quick and smooth execution of the new enterprise, using competence and potential of both capital groups. The cooperation increases the security of the project and allows to better distribute risks, which gives us an advantage over other investors”, said Grażyna Piotrowska-Oliwa, President of the Management Board at PGNiG.
According to the letter of intent, TAURON and PGNiG undertook to set up working teams. Their task would be to draft cooperation agreement defining obligations of the parties and outline of cooperation at the stage of project preparation. The teams will also develop a model and draft schedule of unit construction, and decide about the details concerning financial and technical matters. The letter of intent does not exclude participation of Inwestycje Polskie in the financing of the project.
The idea that stipulates restoration of electrical capacity in cogeneration with heat production at the Łagisza power plant is backed by the existing and prospective stable market of heat and electricity as well as the possibility of using the existing infrastructure of the power plant. Łagisza is at the moment one of the key sources of heat supply for Będzin and Dąbrowa Górnicza, and in the future, after 2017 will also cover Sosnowiec. Research showed that there is a stable market for heat after 2016 in the area covered by the power plant. Due to its location, the power plant may together with TAURON Ciepło’s generation assets form a part of integrated heating system for the region of Silesia and Dąbrowa, that would guarantee security of power supplies on the local market through operation of mutually complementary heat sources. Another advantage of the investment’s location is the fact that Łagisza power plant has highly qualified staff and relevant infrastructure for all the utilities required for electricity and heat generation (water, fuel and other supplies, power connections at all levels of 110, 220, 400 kV voltages).