The European Bank for Reconstruction and Development (EBRD) is providing a long term loan of up to PLN 320 million (€75 million equivalent) for the conversion of a combined heat and power plant in Krakow into a gas-fired unit.
The plant belongs toTAMEH Polska, a joint venture between the leading steel manufacturer ArcelorMittal Group and Tauron, a Polish energy utility company and is located within Kraków’s ArcelorMittal steel plant.
The switch from coal to gas is expected to reduce greenhouse gas (GHG) emissions by up to 200,000 tonnes of CO2 each year and bring the plant into compliance with European Union environmental requirements resulting from the Industrial Emissions Directive, which is coming into force in Poland in autumn 2018, EBRD said.
TAMEH Polska supplies electricity, heat, blast and compressed air to ArcelorMittal's steel plants in Krakow and to the city of Dabrowa Gornicza.
“The loan will finance an investment programme in Kraków which will not only benefit the environment but is also expected to set standards of corporate governance and business conduct” EBDR said.
The EBRD launched its Green Economy Transition approach last year, under which the Bank aims to increase green financing to 40 per cent of its total annual investments by 2020 compared with a target share of 25 per cent over the previous five years.
Since the launch of the EBRD Sustainable Energy Initiative in 2006, the Bank has invested over €18 billion in over 1,000 sustainable energy and resource projects with a total value of €97 billion.
“Poland remains heavily reliant on coal-powered plants and urgent steps are needed in order to fulfil the country’s climate change obligations” commented Frederic Lucenet, EBRD Head of Manufacturing and Services, adding that “the conversion of the
Kraków plant shows a possible way forward and we expect this to become an example others will want to follow.”
“We are looking forward to completing this investment” said Kristina Cervenkova, Chair of the Board of Directors at TAMEH Polska.
“Our objective is to continually improve our environmental footprint and thanks to this particular project we will also be able to increase our energy efficiency by making use of gases produced in the steelmaking process” she added.
The EBRD and Poland have been working together closely since the establishment of the Bank 25 years ago and it was here that the Bank made its first investment. To date, the EBRD has invested €8.13 billion in more than 370 projects in the country.
The Bank’s activities include all sectors of the Polish economy. In recent years, following demand in the market, the EBRD has been particularly active in the development of the local capital market and in supporting energy efficiency and sustainable sources of energy.