Polish refiner targeting 500MW of new zero or low-carbon hydrogen production by the end of the decade
Polish refiner PKN Orlen plans to invest 7.4 billion zloty ($1.87 billion) on low- and zero-carbon hydrogen development projects by the end of the decade.
The company confirmed this week it would pursue hydrogen development projects based on renewable energy sources and municipal waste conversion technology, with PKN Orlen targeting roughly 540-megawatts of new hydrogen production capacity by 2030, with a longer term goal to achieve 1-gigawatt of capacity.
The investment will be spread out over the next decade, with roughly 600 million zloty being spent between 2021 and 2024, and the remaining 6.8 billion zloty being invested in the latter half of the decade.
By 2030, PKN Orlen plans to have invested 4.1 billion zloty in hydrogen production and infrastructure for mobility, while 2 billion zloty will be directed towards asset decarbonisation.
The Polish group will spend about 900 million zloty on renewable electrolysers, while the remaining 400 million zloty from the overall budget will be directed towards research an development.
Orlen claims the majority of its key capital projects are scheduled to come online before 2025, while adding each project had applied for non-repayable funding to finance 40%–80% of the costs.
Hydrogen strategy
The move is part of the Orlen Group Hydrogen Strategy, which is focused on four key areas — mobility, refining and petrochemicals, research and development, and industry and energy.
The strategy will see 10 hydrogen hubs developed by 2030, which PKN Orlen said would produce roughly 60,000 tonnes per annum of low- and zero-carbon hydrogen.
The strategy will also see the group invest in carbon capture, storage and utilisation technology, which it claims will be able to lower the carbon intensity of a further 120,000 tonnes of hydrogen produced at its facilities in Plock.
PKN Orlen said this would see nearly half of the hydrogen used by the Orlen Group coming from zero- or low-carbon sources by 2030.
“This would help us reduce CO2 emissions by 1.6m tonnes,” claimed Daniel Obajtek, president of the PKN Orlen management board.
“We already have strong capabilities in developing hydrogen technologies, backed by our vast experience in the field. And the implementation of our hydrogen strategy will position us as a partner of choice in building a hydrogen economy in Central and Eastern Europe.”
Hydrogen hubs
Orlen launched its first hydrogen hub last year in Trzebinia, which currently makes grey hydrogen for transport, however, the company says the hub will ultimately produce low-carbon hydrogen from renewable energy sources.
Its second hub, being developed in Wloclawek, is expected to start producing green hydrogen in the second half of next year, with another green hydrogen hub in Plock to be launched two years later, supplying clean hydrogen for industrial and transport applications.
In its strategy, the Orlen Group is targeting production of at least 19,000 tpa of hydrogen for transport applications, which it claims is enough to power some 1000 buses and 160 trains each year.
Orlen is also targeting having a network of over 100 hydrogen refuelling stations by 2030, supplying hydrogen to motorists in Poland, the Czech Republic and Slovakia.
Orlen is also placing an emphasis on research and development, launching its hydrogen analytical testing laboratory in Trzebinia last year.
It is also looking to open a hydrogen laboratory at the Research and Development Centre in Plock by 2025 that will carry out tests and research on dedicated facilities to study hydrogen production, quality, purification, storage and transport.
The company is also hoping to develop hydrogen technology for industry and energy generation, with the strategy focusing in particular on new combined cycle gas turbines with the option to co-fire hydrogen.
Looking beyond 2030, PKN Orlen’s hydrogen strategy outlines the potential for surplus zero- and low-carbon hydrogen being directed to meet the needs of other industries, both locally and abroad.
Source: upstream
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