TAURON Polska Energia signed the investment agreement and the shareholders’ agreement defining the terms of commitment in the implementation of the 910 MW unit construction in Jaworzno with Investment Funds managed by the Polish Development Fund (PFR). The PFR will invest up to PLN 880 million in the construction.
- I am glad that new investment projects in the energy sector are implemented. Owing to them, the energy sector will be ready for challenges it will have to face in the nearest years. The construction of the new 910 MW capacity unit in Jaworzno is a key investment. The new unit will generate up to 6.5 TWh of electric energy per year, which means electricity for 2.5 million households - said Krzysztof Tchórzewski, the Minister of Energy.
The parties to the investment agreement and the shareholders’ agreement include TAURON Polska Energia S.A., Nowe Jaworzno Grupa TAURON sp. z o.o. and Infrastructural Investment Fund - Equity Closed-End Investment Fund of Non-public Assets [Fundusz Inwestycji Infrastrukturalnych – Kapitałowy Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych] and Infrastructural Investment Fund - Debt Closed-End Investment Fund of Non-public Assets [Fundusz Inwestycji Infrastrukturalnych – Dłużny Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych] the investment portfolios of which are partly managed by Polski Fundusz Rozwoju S.A.
- The agreements with the Investment Funds represent the next of our numerous initiatives owing to which funds necessary for continued development of the Group and the investment projects carried out by us have been guaranteed – Filip Grzegorczyk, the President of the Management Board of TAURON Polska Energia emphasises. - The construction of the 910 MW capacity unit in Jaworzno is currently the largest investment implemented under the investment programme of the Group. We mobilise our resources in new generation capacity simultaneously caring for the adequate modelling of the financing structure which enables keeping the debt ratios at a safe level, due to which the Group maintains its financial stability – the President adds.
Pursuant to the agreements concluded, the Funds will invest the total amount of up to PLN 800 million through their taking up new shares in the special purpose vehicle - Nowe Jaworzno Grupa TAURON sp. z o.o. (NJGT) - currently a single shareholder company of TAURON Polska Energia, which has been implementing the construction of the 910 MW unit in Jaworzno.
- The financial engagement in the construction of the Jaworzno unit fits perfectly into the investment policy of infrastructural funds managed by us and the PFR strategy with its main objective of fostering the processes of creating key assets for the Polish economy. New generation sources, such as the Jaworzno unit, guarantee energy security of Poland in the timeframe of consecutive several decades – said Paweł Borys, the President of the Management Board of the Polish Development Fund.
The Funds’ interest in the NJGT share capital as at the day of the power unit commissioning should amount to approximately 14%, whereas the share of TAURON Polska Energia S.A. - to at least 50% + 1 share.
Concluding of the aforementioned agreements with the Funds is a key element in implementation of TAURON Group’s 2016-2025 Strategy in the scope of construction of the 910 MW unit in Jaworzno under the financing formula based on the acquisition of NJGT company shares by external partners.
The date of investing financial resources by the Funds depends on the fulfilment of the specific conditions precedent by TAURON and NJGT, among others, on obtaining the approval of concentration and acquiring the decision endorsing the terms and conditions of electricity sales agreement constituting one of key agreements of the transaction documentation.
The Nowe Jaworzno Grupa TAURON company was established through separation of an organised part of the enterprise from TAURON Wytwarzanie S.A. and launched its operations in April 2017.
The current progress of the construction of the 910 MW unit in Jaworzno has exceeded 60%.
The unit will be adjusted to the compliance with the stringent environmental protection standards, substantially mitigating the emission of CO2 and other gases.
The unit with the efficiency of 45.9% net is constructed in coal-based technology for supercritical parameters, with power evacuation by 400 kV line connected to the National Power System. Planned annual coal consumption will amount to 2.8 million tonnes. The fuel will mostly originate from coal mines of TAURON Group. The unit will generate up to 6.5 TWh of electricity per year, which corresponds to the demand of 2.5 million households.
After completion of the investment, due to over 10% performance growth in relation to units commissioned in the 1970s and 1980s, 2 million tonnes less of CO2 will be emitted to the atmosphere, and under the requirements of the climate policy, the unit will be prepared for construction of the installation for CO2 capturing from flue gas (CCS ready).
