MINEX Forum

Tag: Poland

  • Poland has no plans to quickly cease hard coal production: Minister of State Assets

    Poland has no plans to quickly cease hard coal production: Minister of State Assets

    Both the Polish government and the ruling Law and Justice (PiS) party have confirmed that they do not intend to accelerate the phase-out of hard coal production in Poland, according to Jacek Sasin, the Polish state assets minister. Sasin emphasized that there is a social agreement in place, outlining the gradual reduction of coal mining by 2049. He also stated that there are no plans to expedite the country’s transition away from coal.

    Sasin’s remarks came after a meeting with a group of signatories of the social contract related to the future of hard coal in Poland. He clarified that the government is committed to fully implementing the social agreement and aims to address any doubts or questions that have arisen.

    Poland remains heavily reliant on fossil fuels, particularly coal, and is opposed to accelerating the EU’s green agenda. The country argues that it needs more time to transition to green energy sources due to the legacies of the pre-1989 communist regime, which promoted coal mining and coal-fired power plants.

    In April, the European Parliament approved key legislation as part of the Fit for 55 in 2030 package, aiming to reduce greenhouse gas emissions by at least 55 percent by 2030 compared to 1990 levels and achieve climate neutrality by 2050.

    The Polish coal mining industry employs approximately 75,000 people, and powerful mining unions exert significant influence on energy policy in the country.

    Additionally, Poland’s development minister, Waldemar Buda, expressed hope that the current lower house of parliament would address a bill to establish a new state-owned company that would take ownership of coal-fired assets from energy firms after the upcoming general election. This new state agency, the National Energy Security Agency (NABE), is intended to free energy companies from their polluting assets, making them more attractive to investors. The country is set to hold elections on October 15, and Buda hoped that the lower house could overrule an upper house veto on state guarantees for NABE before the new post-election parliament convenes.

    On September 7, the Senate, the upper house, voted against a bill related to state guarantees for NABE.

  • Poland’s JSW has no plans for acquisitions on energy market

    Poland’s JSW has no plans for acquisitions on energy market

    Polish miner JSW will focus on increasing the extraction of coking coal, and does not plan on expansion through energy company acquisitions, CEO Tomasz Cudny said on Thursday.

    “Today our actions are directed to increase extraction of our type of coal, we’re speaking of coking coal. When it comes to the energy market, we are not planning any acquisitions,” said Cudny on a conference call.

    Cudny’s comments that the company plans to focus on boosting coking coal extraction, which is used in steelmaking, follow a fire in one of its mines in March, which prompted it to cut its 2023 production output forecast by 250,000 tons.

    In November, it forecast production of 14 million tons this year. In the first six months, JSW produced 6.7 million tons.

    On Wednesday, the company reported second-quarter coking coal production edged up 1.4% to 2.7 million tonnes from the prior quarter, while revenue from sales to external recipients slumped to 1.87 billion zlotys ($436.74 million) from 2.16 billion in the first quarter.

    Net profit in the second-quarter fell 67% to 780.6 million zlotys from the prior year, with core profit tumbling to 3.33 billion zlotys versus 5.97 billion zlotys in the same period last year.

    Members of the management board pointed out on the call that last year’s results had benefited from favourable macroeconomic conditions, including a spike in the price of coal after Russia’s invasion of Ukraine.

    “We had used that moment and the effects could be seen in our results from the year 2022,” Cudny said.

  • Poland extracts key metal needed for energy evolution, looks for rare earths abroad

    Poland extracts key metal needed for energy evolution, looks for rare earths abroad

    “Copper is the driving force behind the energy revolution and a crucial strategic resource. Without it, the energy transformation is not possible,” emphasized Tomasz Zdzikot, CEO of KGHM Polska Miedź, during the XXXII Economic Forum in Karpacz. Poland is also actively engaged in geological explorations in Mongolia to locate deposits of rare earth elements.

    Zdzikot participated in a panel discussion titled “Raw Materials of the Future – Which Raw Materials Should Poland Extract.” He highlighted the significance of “The State Raw Materials Policy 2050,” a strategic document accepted by the government last year, which identifies critical resources for Poland.

    The CEO of KGHM stressed that copper plays a pivotal role in the energy revolution. He pointed out that the US Energy Department added copper to its list of strategic raw materials in August, signaling a projected doubling of global copper demand by 2035. Additionally, copper is classified as a strategic raw material in the European Union.

    Zdzikot underlined the copper requirements for green technologies, noting that an electric car necessitates 150 kilograms of copper, while a 3MW wind turbine requires nearly 5 tons of the metal.

    He also emphasized KGHM’s role in ensuring Poland’s raw material security, highlighting that 50 percent of the EU’s total copper output comes from copper extraction in Poland’s Lower Silesia. Furthermore, KGHM is recognized as the world’s second-largest producer of silver.

    In the same discussion panel, Poland’s chief geologist, Piotr Dziadzio, disclosed the country’s geological work in Mongolia to locate rare earth element deposits. These geological surveys are conducted in collaboration with the local geological service.

    Dziadzio noted that various countries have established strategies for identifying rare earth element deposits, which are expected to yield benefits in the long run. He emphasized the need for transparent partnerships and community engagement in mining these minerals, ensuring they are not perceived as a form of colonialism.

    Furthermore, Dziadzio indicated that Poland has proposals for additional cooperation on rare earth element projects, including one in the Dominican Republic.

  • Court suspends case against Poland’s Turów coal mine

    Court suspends case against Poland’s Turów coal mine

    The decision, which allows the mine to continue operating for the time being, was welcomed by the Polish government. However, the environmental groups that brought the case have expressed disappointment that the proceedings will drag on further.

    It marks the latest twist in a long-running legal battle over the mine, which has also drawn in Poland’s neighbours, the Czech Republic and Germany, whose borders are close to Turów.

    The provincial administrative court in Warsaw had yesterday been due to rule on the environmental decision that granted Turów, an open pit brown coal mine that feeds a nearby power station, a concession to operate until 2044.

    Instead, the court suspended the case because parallel proceedings before the General Directorate for Environmental Protection (GDOŚ) regarding an application from the mine’s owner – state-owned energy firm PGE – to amend the environmental decision have not been concluded.

    The judge noted that PGE recently withdrew its bid to amend the environmental decision, which led GDOŚ to discontinue proceedings. However, she stressed that, until the discontinuation becomes final and binding, the administrative court cannot rule on the legality of the permit.

    This development was welcomed by government figures, who argue that the mine and power plant in Turów are essential for Poland’s energy security.

    “The fight for Turow continues,” wrote climate minister Anna Moskwa. State assets minister Jacek Sasin called it “a key decision for Poland’s energy security”, adding that “the functioning of the mine is not threatened and the mining concession is valid until 2044”.

    Even before the ruling was issued, Moskwa had insisted that the mine would remain open whatever happened. “Obviously, regardless of this ruling and decision – because we have different experiences – Turow will not be closed. We will defend energy security,” she told Polskie Radio.

    A lawyer from one of the environmental groups that has challenged the legality of the environmental decision, Agnieszka Stupkiewicz of Frank Bold, admitted that the court had no choice but to suspend proceedings.

    However, she criticised the “scandalous” behaviour GDOŚ, saying that the agency had not kept parties in the case nor the administrative court informed of PGE’s decision to withdraw its bid to amend the environmental decision.

    Her group and other climate organisations from Poland, the Czech Republic and Germany brought their case against the environmental decision last year, arguing that there were a number of shortcomings in how it was reached, including a failure to take account of the mine’s impact on the climate.

    In July, the provincial administrative court in Warsaw ordered the environmental permit to be provisionally suspended ahead of a final ruling, finding that there is a risk of significant environmental damage.

    That decision was, however, later overturned by the Supreme Administrative Court. It meant that the mine was allowed to continue functioning until a final ruling on the environmental decision is issued by the Warsaw court.

    Meanwhile, yesterday’s decision by the court to suspend proceedings was welcomed PGE’s CEO, Wojciech Dąbrowski, who said that “Turów mine and power plant will remain one of Poland’s most important sources of energy for at least 20 years”.

    “From the very beginning, we have not recognised the legitimacy of any allegations made against the environmental decision on the Turów mine,” he added.

    His comments come just a day after PGE presented a new strategy to become carbon neutral by 2040, including abandoning the use of coal by 2030. That will be achieved in part by a government plan to transfer energy firm’s coal assets to a single, separate entity.

     

     

  • Metinvest Group Invests in Polish Logistics Center to Boost Ukrainian Metal Exports

    Metinvest Group Invests in Polish Logistics Center to Boost Ukrainian Metal Exports

    In a recent interview with leading Polish business publication Business Insider, CEO Yuriy Ryzhenkov unveiled Metinvest mining and metallurgical group’s plans to invest in a logistics center in Poland. The objective behind this investment is to enhance the supply of Ukrainian metal products for export.

    Ryzhenkov revealed that Zaporizhstal and Kamet Steel, two subsidiaries of Metinvest, are currently operating at 65-70% and 75% of their respective capacities. Approximately 25% of their products are sold within the domestic market, while the majority is exported, primarily to European Union countries. Notably, neighboring nations such as Poland, Slovakia, the Czech Republic, Romania, and Bulgaria are significant destinations for these steel products. The company also caters to customers in countries like Italy, Germany, and France.

    Ryzhenkov acknowledged that steel mills are faring relatively well in terms of sales. However, iron ore enterprises face different challenges. Aside from serving domestic consumption, China was a key buyer. Unfortunately, due to current circumstances, exports to China are nearly impossible as Black Sea ports are blocked. Consequently, EU border countries remain as buyers. Iron ore enterprises are currently operating at 35-40% of their capacity. Efforts were made to send raw materials to China through Romanian and Polish ports, but the logistics economics proved unviable in the current market conditions.

    Ryzhenkov pointed out that the company’s coal production in Ukraine is operating at full capacity. The coal is supplied to Metinvest’s coking enterprises within Ukraine and is also sold in the local market. Exports, mainly to Slovakia and Poland, account for the remaining portion.

    The CEO also mentioned that Metinvest’s 2022 steel production decreased by 69% compared to the previous year, significantly impacting various financial indicators, with profits in 2022 down by 54% compared to the prior year.

    Despite these challenges, Metinvest’s overarching strategy remains unchanged. The company aims to integrate Ukraine and its iron ore resources into the European steel production chain. Consequently, Metinvest continues to seek opportunities to acquire assets that facilitate the utilization of Ukraine’s raw materials to produce goods in the EU and supply them to European consumers.

  • PGE accelerates the transformation of Poland’s energy sector – zero-carbon company by 2040

    PGE accelerates the transformation of Poland’s energy sector – zero-carbon company by 2040

    The Polish economy’s competitiveness hinges on a transition to clean, safe, and sustainable energy. The updated strategy of the PGE Group is a direct response to the evolving geopolitical and economic landscape in Europe, as well as the shifting role of electricity, now recognized as the fuel of the future and a pivotal component in the security and sovereignty of European nations.

    Wojciech Dąbrowski serves as the President of the Management Board of PGE Polska Grupa Energetyczna.

    PGE’s revised strategy is a carefully considered, rational, and responsible blueprint for advancing Poland’s energy sector through modern solutions. Our commitment to environmental responsibility and sustainable development positions us as the first energy company in Poland to achieve climate neutrality by 2040, a decade earlier than originally planned.

    The successful execution of this strategy owes much to the proactive measures of the Polish government, including the establishment of the National Energy Security Agency, tasked with overseeing Poland’s coal-fired generation sources. This decision, endorsed by rating agencies like Fitch and Moody’s, accelerates our transformation efforts. It enhances our capacity to secure funding for new investment projects while ensuring the systematic decarbonization of an energy sector currently reliant on coal (70%). Importantly, it safeguards the stability of our electricity system and supports jobs in existing conventional generation units, mines, and the communities around them, all while preserving Poland’s energy security.

    PGE’s emerging energy mix will pivot towards renewable sources, with a prominent focus on offshore wind farms in the Baltic Sea, where we stand as Poland’s largest investor with a potential capacity exceeding 7 GW. Ensuring optimal utilization of renewable energy capacity, we will deploy energy storage facilities that also play a stabilizing role in a digitally managed distribution network. The renewable energy segment will be complemented by an ongoing nuclear power plant project in collaboration with our Polish and Korean partners, along with gas-fired power plants where hydrogen and biomethane will replace gaseous fuel after 2030. Customers remain a vital part of Poland’s energy transition, and we continue to expand our offerings, including photovoltaics, heat pumps, and home energy storage solutions, to support their energy independence.

    Implementing PGE’s strategy requires unprecedented investments in Poland’s energy sector. By 2030 alone, we will invest more than EUR 27 billion. This substantial commitment will serve as a catalyst for job creation and the development of industries centered around modern energy in Poland. The green transition will significantly enhance Poland’s overall economic competitiveness on the global stage, driven by green energy.

  • Poland keeps coal exit target as top utility seeks quicker carbon neutrality

    Poland keeps coal exit target as top utility seeks quicker carbon neutrality

    Poland is not planning a quicker end to using coal, the government said on Wednesday, criticising state-controlled utility PGE (PGE.WA) for bringing forward its carbon neutrality target by a decade to 2040.

    Under a pact the government signed with trade unions, Poland plans to keep mining coal until 2049.

    PGE, Poland’s biggest power utility, said on Tuesday it is seeking a faster exit as it bets on renewable energy.

    While coal generates some 70% of Poland’s electricity, experts say using the fuel in power generation is not sustainable in the long run amid rising costs and the European Union’s green climate policies.

    “The Polish government’s energy policy implemented by the Ministry of State Assets does not assume acceleration of the coal phase-out,” the ministry said in a statement, commenting on PGE’s strategy update. PGE will have to shoulder 26 billion zloty ($6.4 billion) of carbon emission costs this year and needs to speed up its transformation to reduce the burden and remain competitive, Chief Executive Wojciech Dabrowski told Polish public radio on Wednesday.

    “The Ministry of State Assets expects that the assumptions of the government’s energy policy will be implemented in practice by all energy companies with State Treasury shareholding, which will also be reflected in their strategies and investment activities,” the ministry said.

    ($1 = 4.0875 zlotys)

  • Can Poland dismantle the EU Green Deal with legal challenges?

    Can Poland dismantle the EU Green Deal with legal challenges?

    For years, Poland’s right-wing government has been threatening to legally challenge the EU’s climate policy, and this summer it delivered on that threat. Climate and Environment Minister Anna Moskwa announced on 8 August the country has petitioned the European Court of Justice to strike down the recent revision to the EU’s Emissions Trading System (ETS) and the Carbon Border Adjustment Mechanism (CBAM), which is set to start levying a fee on climate-unfriendly imports on 1 October. Both are key components of the Fit for 55 package, the legislative toolbox designed to deliver on the goals of European Commission President Ursula von der Leyen’s Green Deal.

    “The introduction of CBAM fees will translate into an increase in the cost of imported products and electricity, as well as products manufactured in Poland for the end user,” Moskwa said in a statement. Regarding the ETS, Moskwa said Poland objects to the increase in allowances that will keep the price of carbon high, which “may reduce the level of energy security” of EU countries at a time when that security is being threatened by Russia.

    The substance of the laws was decided by majority votes of EU countries earlier this year, in which opposition by Poland and Hungary was overcome. Poland is not only challenging the substance of the laws based on their effects, but also the way the laws were adopted. Because the laws will affect the economy, they are “primarily of a fiscal nature”, Moskwa said, and therefore the ordinary voting system should not have been used but rather a special legislative procedure which requires unanimous approval by all EU member states. Were the EU’s high court to agree, the laws could be invalidated and sent back to the Council for another vote, at which time Poland and Hungary would veto them.

    Poland already challenged four other pillars of Fit for 55 earlier this summer: the ban on combustion engine car sales by 2035; the reduction of free allowances in the ETS; increased EU forest management; and the overall increase of the EU’s greenhouse gas emissions reduction target. Poland’s heavy use of coal and energy security concerns have made it the chief opponent of EU climate policy for two decades. They have tried and failed in the past to challenge EU climate policy with the high court. In 2016 they took the European Council and European Parliament to court for passing a law establishing a market stability reserve in the ETS to raise the price of carbon, which was drastically too low to be effective. They used the same argument – that the law needed to be decided by unanimity. This argument was rejected by the European Court of Justice.

    Uphill battle

    Legal experts say Poland’s chance of success at the European Court of Justice this time around is also not high – but there is a big question mark hovering over the CBAM legislation. “Such a justification, i.e. the protection of state interests presented as in the Polish government’s complaints, will not work – as confirmed by the court’s well-established previous jurisprudence in similar cases,” says Robert Grzeszczak, a professor of European law at the University of Warsaw.

    “Besides, it’s a double-edged weapon. If Poland managed to challenge EU law on the grounds of its state interests, so could any other state challenge any other arbitrary act, precisely on the grounds of protecting national interests. This is not sufficient on its own, specific infringements must be demonstrated which would cause the act to be annulled by the court.” He adds that Poland’s argument that the wrong voting method was used is also unlikely to hold water with the court since it is specifically taxation that needs unanimity votes, not all fiscal policy.

     

    Keep up with Energy Monitor: Subscribe to our weekly newsletter

     

    This is precisely why the Commission has been so insistent on not calling the levy a “carbon border tax” and rather using the cumbersome formulation of CBAM. A “tax” would have required unanimous approval, and the EU executive likely expected Poland to veto the proposal. That is what makes CBAM perhaps the most vulnerable of all the pieces of legislation challenged. If the high court were to rule it is in fact a tax and not an “adjustment mechanism”, it would be sent back to the Council, where Poland would kill it. Given that companies are already preparing for the start of the mechanism on 1 October, this could cause major disruption – especially if the court makes a ruling after CBAM has taken effect. A ruling before 1 October, or even by the end of the year, is unlikely.

    “Based on similar actions, it can take two years or more for a judgment to be rendered and the contested rules are generally not suspended during that period,” consultancy Ernst & Young said in a note to clients. “The action could have significant impact on CBAM and the EU’s Green Deal in the medium-term. Withdrawal of the CBAM Regulation, in full or part, could jeopardise the EU Commission’s plans for the EU economic zone’s competitiveness among industries that are subject to ETS regulations.”

    “Given the fast-approaching 31 January 2024 deadline for submitting the first CBAM report covering Q4 2023, businesses need to continue their efforts to prepare for their CBAM compliance obligations,” it added.

    Climate of hostility

    Although they do not believe Poland’s legal challenge will be successful, NGOs are warning that were the court to rule in Warsaw’s favour on CBAM, or the other pieces of legislation, it could cause the overall framework of the EU’s climate efforts to collapse. They say Poland is playing a dangerous political game.

    “Warsaw’s blanket opposition towards major Fit for 55 regulations should be mainly understood in the context of the quickly approaching parliamentary elections [in Poland],” says Michał Smoleń, head of the energy and climate programme at the NGO Instrat. “Hostility towards more ambitious EU climate policies have unfortunately become just another topic for the competition between different right-wing factions, both inside and outside the ruling coalition.”

     

    Read more from this author: Dave Keating

     

    This exploitation of anti-climate-laws sentiment is not limited to Poland’s far-right government. Europe’s centre-right has also been flirting with such populist messages ahead of the EU and UK elections next year. And this comes while the EU this week lost its green champion, Executive Vice President Frans Timmermans. On Tuesday, Timmermans officially resigned his post to run to become prime minister of the Netherlands in the upcoming Dutch election. He will be replaced by Maroš Šefčovič, the EU commissioner from Slovakia.

    Šefčovič, in charge of interinstitutional relations, has been a master at the art of compromise – the opposite of Timmermans’ sometimes hard-headed approach. Timmermans has been loathed by the Polish and Hungarian governments, and their domestic media, because of his actions against them for rule of law violations during the previous commission term of 2015–2019.

    The more compromise-minded Šefčovič, a neighbour of Poland and Hungary, could find a way to defuse the situation and convince Poland to drop its legal challenges – perhaps after the Polish election is over. But some worry that, with Timmermans gone and President von der Leyen looking ahead to her prospects of re-appointment next year, the Commission is now more likely to back down and weaken the remaining elements of the Fit for 55 package amid pressure from Europe’s right.

    It may be that Poland can succeed in at least partially dismantling the EU’s Green Deal without winning any of its legal challenges, simply by intimidating the EU executive against proposing and further ambitious legislation. Either way, these legal moves could have a major effect on the future of EU energy policy.

  • PEJ Submits Location Decision Application For First Nuclear Power Plant

    PEJ Submits Location Decision Application For First Nuclear Power Plant

    Polskie Elektrownie Jądrowe (PEJ) has submitted an application to the government of the northern Pomerania province seeking a location decision for Poland’s first nuclear power plant.

    The company said the move is “one of the most important steps” in the administrative process preceding the construction of a nuclear power plant. The proposed site lies within the Choczewo municipality in Pomerania.

    The decision will give PEJ the rights to acquire necessary land both onshore and offshore for the project’s construction, the company said.

    It will also outline the real estate to be covered by the investment and set forth conditions for implementation, including technical, environmental, conservation, and fire protection considerations.

    In November 2022, Warsaw chose US-based Westinghouse Electric to supply its AP1000 reactor technology for a three-unit nuclear power station at the Lubiatowo-Kopalino site in the municipality of Choczewo near the Baltic coast of Pomerania.

    The first AP1000 unit is expected online in 2033 with others planned to follow into the 2040s.

    Several other crucial administrative requirements have already been completed, including a decision-in-principle from the ministry of climate and environment affirming the project’s alignment with state energy policies, and a general opinion confirming the validity of safety analysis verification conducted by the national atomic energy agency. The process to obtain a decision on environmental conditions is also at an advanced stage.

    Nuclear new-build plans are a central part of Poland’s drive to fundamentally realign its energy sector by 2040. The venture is one of Poland’s most significant public works projects ever and will provide both energy security and support for a growing economy.

  • Polish Briefing: Poland’s quest for rare minerals I Bogdanka mine wants to go green

    Polish Briefing: Poland’s quest for rare minerals I Bogdanka mine wants to go green

    Poland is looking for a substitute for lithium and other rare earth metals

    Poland is exploring the possibility of using a substitute for lithium and other rare earth metals. “The raw materials policy defines those raw materials that are used today. Today it is apparent that the energy transition makes it necessary to develop economic areas, which we should launch in our country. If we define the areas that we will launch in Poland, then we can adjust the needs for raw materials. Perhaps some of these needs are met, so we will open a discussion and try to introduce the point of view that not only critical raw materials are necessary, but they can also be replaced by other generally available raw materials, such as rare earth metals, lithium,” said Deputy Minister of Climate and Environment Piotr Dziadzio, Chief Geologist of the Country.

    “We should look for substitutions for raw materials and that is what we are doing. I do not want to reveal the details now, but in the coming weeks there may be additional information on this subject,” added minister Dziadzio.

    Lithium is used for the production of electric car batteries, among others. Rare earth metals are used to make semiconductors, which are an essential element of electronics, military equipment or vehicles. They are also needed for the energy transition.

    Wojciech Jakóbik / Jedrzej Stachura

    Bogdanka’s new strategy to turn the mine green

    Bogdanka Lubelski Węgiel presented a development strategy that involves more coal mining until the mine is closed in Poland, and in the meantime investments in renewables, their components and recycling.

    “The average level of coal production in 2023-2025 will be approx. 9.1 million tonnes, in the years 2026-2030 approx. 10.1 million tonnes, and in 2031-2040 approx. 9.1 million tons,” the new Bogdanka strategy announced in Lublin on May 17 said. Bogdanka intends to maintain more than half of the market share of coal.

    One of the priorities is to “guarantee production by 2049 by starting production from the K-6 and K-7 resource base in 2024 and preparing for the availability of a vertical Ostrów field, which after 2038 will guarantee the flexibility and energy security of the state in the energy transition.” The social contract with Polish miners provides for the pahse-out of mines by 2049.

    The company also declares “support for Ukraine’s energy recovery through the use of Bogdanka’s competencies and resources, which can actively support the reconstruction of critical infrastructure in Ukraine after the war.”

    Bogdanka is also expected to develop multi-resource mining based on the exploration and commercial extraction of a number of minerals crucial for sustainable transformation and attractive to the market. The aim is also to produce res components, i.e. foundation baskets for wind farms and structures for the installation of PV panels. The mine also wants to scale up RES installations to diversify Bogdanka’s revenue stream by adding 500MW RES installations and selling the energy produced by them, as well as trading batteries and PV waste.

    LW Bogdanka / Wojciech Jakóbik