Green energy in JSW - strategic loan for environmental projects

Green energy in JSW – strategic loan for environmental projects

09/10/2023

Image source: pixelied.com / pixabay.com

Jastrzębska Spółka Węglowa has entered into an agreement with the National Fund for Environmental Protection and Water Management to secure a loan of PLN 85 million for the “Commercial Methane Utilization – KWK Budryk” project. The signing of this agreement, which took place on 4 October at JSW’s headquarters, aims to provide support for innovative environmental initiatives and sustainable development activities. The signing ceremony was attended by Marek Wesoły, Deputy Minister of State Assets, Tomasz Cudny, President of the JSW Management Board, Dominik Bąk, Deputy President of the National Fund for Environmental Protection and Water Management, and Wojciech Kałuża, Vice-President of the JSW Management Board for Development.

Deputy Minister Marek Wesoły expressed his appreciation for this initiative, emphasizing the awareness of the dangers posed by mining and the need for necessary changes to be implemented. He welcomed any financial support that can be directed towards mining companies, recognizing that Jastrzębska Spółka Węglowa plays a crucial role in our development through the production of coking coal, which is vital for the energy transition and the production of steel.

The loan proceeds are specifically designated for financing projects aimed at reducing the environmental impact of mining operations and promoting nature-friendly solutions. The total cost of the “Commercial Methane Utilization – KWK Budryk” project amounts to PLN 88,165,130, and the loan will cover 96.4 percent of this cost.

Tomasz Cudny, President of the JSW Management Board, expressed his satisfaction with the financial support received for their environmental projects, aligning with the environmental strategy adopted by the JSW Group. He appreciated the collaboration with the National Fund for Environmental Protection and Water Management, which actively supports environmental projects not only within JSW SA but also in other companies of the Group. Cudny also highlighted the recent support of PLN 150 million received by JSW Koks for the construction of the Radlin Combined Heat and Power Plant.

The “Commercial Methane Utilization – KWK Budryk” project focuses on reducing methane-related hazards through enhanced methane drainage efficiency and a reduction of methane emissions into the environment by 13 thousand tons annually. This will be achieved by utilizing methane in cogeneration units for the generation of electricity and heat, resulting in a reduction of CO2 emissions by 328.5 thousand tons per year. Furthermore, the implementation of this project will lead to a decrease in energy procurement from external suppliers and a reduction in fees associated with methane emissions.

The project at the Budryk mine encompasses the construction of six cogeneration units with a total capacity of 20 MWe, enabling the production of up to 120,000 MWh of electricity per year. Additionally, infrastructure such as the main switchboard at the VI shaft site, methane drainage pipelines, and other technical facilities have been expanded.

Dominik Bąk, Vice-President of the Management Board of the National Fund for Environmental Protection and Water Management, highlights the significance of this project. He explains that it involves the construction of infrastructure that enables the utilization of methane extracted from the mine for electricity and heat generation by Jastrzębska Spółka Węglowa SA. The project primarily focuses on the utilization of methane from the Budryk mine to meet the energy needs of the mine itself.