On May 5 this year, Orlen Południe signed a letter of intent with PGNiG on cooperation in the development of renewable energy sources. The companies plan to establish a special purpose vehicle that will invest in the development of the biomethane plant network by purchasing existing facilities and building new ones. According to PGNiG, the signed letter of intent is the result of analyzes carried out by the companies regarding the production of biogas, then purified to the parameters of biomethane. The goal is to create a business environment and a scientific and technological base for the development of a network of biomethane plants, each of which will produce approx. 4 million m3 of biomethane per year. 

The Orlen Group has already started business activities in this area. In December 2020, Orlen purchased an operating biogas plant in Konopnica, commune Rawa Mazowiecka, and in January two plots in the commune of Gutter for building your own installation. In March this year, it took over an agricultural biogas plant in Wojny-Wawrzyńce, in the commune of Szpietowo. The company plans to expand these facilities and transform them into biomethane plants. [2] Based on the official data of PGNiG, their company is interested in the collection of biomethane from producers and its distribution through transmission networks mixed with natural gas. 

“We are strengthening the competences and position of the Orlen Group on the renewable energy market. By joining forces with PGNiG, we are developing a new business line in the area of ​​biomethane. The high potential of this clean, ecological fuel, which can become a source of green hydrogen, will enable us to achieve our strategic business goals and effectively contribute to the energy transformation of the Polish economy, ”said Daniel Obajtek, President of the Management Board of Orlen. 

The above letter of intent is a harbinger of deeper cooperation between these companies, which is to end in a merger into one corporation. PKN Orlen would take over PGNiG and Grupa Lotos. “Such an entity will be able to reach for external financing for the implementation of many projects even more easily. We know that on the basis of the new European economic policy, in which climate issues will be very much present, in the coming years we will have to incur huge financial outlays for the energy transformation "- told PAP business, Jerzy Kwieciński (former president of PGNiG). 

According to the report of the Warsaw Enterprise Institue, the merger of the companies will allow to obtain capital for the energy transformation; otherwise the firms would be competing for the same funds needed for this purpose. The WEI report assesses the merger as quite late in Europe, where most of the companies have long since consolidated.

“The merger allows for such a large scale of operations and such a high level of revenues that the search for and creation of new technologies becomes possible and profitable. New technologies make it easier not only to gain a competitive advantage, work on fuels of the future (in the case of Orlen and Lotos, hydrogen is often mentioned in this context), but also lead to a decrease in the price of energy produced from renewable sources, 'reads the report.

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