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ORLEN Poludnie started up production of green propylene glycol

November 16/2021

MOSCOW (MRC) -- ORLEN Poludnie, an ORLEN Group company, has brought on stream Polandís first and Europeís largest green propylene glycol production unit at its biorefinery in Trzebinia, said the company.

The unit has a capacity of 30,000 tonnes a year, enough to cover as much as 75% of the domestic demand for the product. This PLN 400m capital project will add over PLN 50m to the Groupís annual EBITDA. An integral part of the complex is Polandís first hydrogen hub. The projects implemented in southern Poland are another step towards achieving the Groupís strategic goals for low- and zero-carbon energy.

Green glycol is a high-margin bio-based product that is clean and environmentally safe. It is used for a wide range of applications, including in medicine, cosmetics, and the food industry. It can also be used in aviation as an anti-icing and de-icing agent for aircraft. ORLEN Poludnie will produce 30,000 tonnes of green glycol a year, an impressive 10,000 tonnes more than Europeís only unit of this type located in Belgium.

"We think ahead. We have launched a state-of-the-art unit to make green glycol in Trzebinia as demand for this bio-based product is constantly growing in Europe and around the world. Poland will be the leader of glycol production in Europe. At the same time, we are bringing on stream Polandís first hydrogen hub, which forms part of the glycol complex. The completed projects will stimulate fast growth of the ORLEN Group in strategic areas while significantly strengthening competitive advantage of the Polish economy. For ORLEN Poludnie, the projects are another milestone in the process of transforming the company into a state-of-the-art biorefinery and consolidating its position as a major business organisation and employer in the region - said Daniel Obajtek, President of the PKN ORLEN Management Board".

Glycerine obtained at the Trzebinia plant as a by-product of biodiesel production will be used to make the eco-friendly glycol, which will be sold to customers in Poland and abroad. The project will also benefit other Polish biodiesel producers, from whom the company will source glycerine. The new project will strengthen ORLEN Poludnieís position both as a player on the Polish biocomponents market and an employer in the region. The glycol unit has created several dozen jobs. Today the company has a workforce of over 670, with more than half of them employed at the Trzebinia refinery.

Construction on the green glycol project was launched in the autumn of 2019 and it was completed on schedule by a consortium formed by two Polish companies: Technik Polska and Biproraf. An integral part of the glycol complex is Polandís first hydrogen hub with an annual output of 16 Nm3, of which 75% will be used for glycol production and the remaining 25% will be further purified into hydrogen fuel. The hub will have an annual production capacity of 350 tonnes of pure automotive-grade hydrogen.

The fuel made in Trzebinia is to ultimately power public transport vehicles in Krakow and the Upper Silesian agglomeration. To that end, the Group has signed letters of intent with Miejskie Przedsiebiorstwo Komunikacyjne of Krakow, Krakowski Holding Komunalny, and the Metropolitan Association of Upper Silesia and Dabrowa Basin. In the future, ORLEN Poludnie will also operate a mobile hydrogen refuelling station.

The strategic capital projects implemented in Trzebinia are underpinned by ORLEN Poludnieís firm and stable financial footing. In the first nine months of 2021 alone, the company posted revenue of ca. PLN 2.4bn, almost PLN 200m more than in the entire 2019 and over PLN 500m more than in the pandemic year of 2020. ORLEN Poludnie has also delivered record net profit for the first three quarters of the year, of PLN 108m.

As per MRC, in August 2020, PKN Orlen signed a non-binding agreement with the state treasury and Grupa Lotos to shape a deal to take direct or indirect capital control of fellow state company Lotos.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.

PKN Orlen would be the first refining and petrochemicals company in Europe to use the Honeywell UOP MaxEne technology for molecule management of a naphtha stream to produce high-quality products including olefins, aromatics and gasoline.
Author:Anna Larionova
Tags:PP, PE, propylene, Orlen Poludnie, PKN Orlen.
Category:General News
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