MANUFACTURED CAPITAL

• In September 2020, PKN ORLEN, as one of Central Europe’s leaders, announced its intention to achieve net zero carbon footprint by 2050. In furtherance of this goal, the Group aims to reduce carbon emissions from its existing refinery and petrochemical assets by 20% and cut down carbon emissions per megawatt-hour of electricity by 33% by 2030. The strategy of net zero carbon emissions is based on four pillars: energy efficient production, zero-emission power generation, fuels of the future, and green financing.
  For more information, go to: https://www.orlen.pl/EN/News/Pages/PKN-ORLEN-to-be-emission-neutral-by-2050.aspx
  
  

• In accordance with the ORLEN Group’s Strategy until 2030, announced in November 2020, the Group’s transformation into a multi-utility powerhouse will be based around renewable energy and gas-fired power generation, efficient low-emission refining and petrochemical production, upstream production of hydrocarbons, and an integrated retail offering. By 2030, the Group plans to spend a total of PLN 140bn on capex projects.
  For more information, go to: https://www.orlen.pl/EN/Company/Strategy2030/Pages/default.aspx
  
  

• An important step towards building a multi-utility group is the acquisition of the Energa Group in 2020 and the planned takeover of Grupa LOTOS and PGNiG.
  For more information, go to: https://www.orlen.pl/EN/Company/Strategy2030/Pages/default.aspx
  
  

• By acquiring the Energa Group, the ORLEN Group gained access to renewable energy assets (e.g. wind farms, hydroelectric power plants).
  
  

• The ORLEN Group carries out construction of an offshore wind farm development project. In 2020, an environmental survey in the wind farm area and preliminary seabed survey and wind survey were completed, negotiations and grid connection agreements were finalised, two offshore cable laying permits were secured, and an application for an environmental decision was submitted.
  
  

• 2020 was a period of intensive development of hydrogen technologies for the Company. Work is underway to build a hydrogen purification system and hydrogen hub in Trzebinia, where automotive-grade hydrogen production will start by the end of 2021. In September 2020, PKN ORLEN announced a tender for the construction of a hydrogen hub in Włocławek with a target capacity of 600 kg/h, which is expected to give the company the leading position on the Polish market of automotive-grade hydrogen fuels.
  
  

• The Company is also implementing a project to install fast chargers for electric vehicles at its service stations.
  
  

• The ORLEN Group is developing solar photovoltaic projects. A tender procedure was launched for the construction of the first 2 MW solar photovoltaic farm located at the CCGT unit in Włocławek.
  
  

• The ORLEN Południe plants are being transformed into a biorefinery. Investments made for the Trzebinia and Jedlicze plants include projects relating to the green glycol unit, UCO FAME production assets, second-generation bioethanol complex, and upgrade of the biodiesel unit. ORLEN Południe will also launch a new business line: biogas plants.
  
  

• Growth of the Company’s retail segment is driven by enlargement of the sales network and significant expansion of the product portfolio offered to customers. With the RUCH nationwide network of newsagents, acquired in 2020, ORLEN’s retail business will be strengthened with 1,300 points of sale, which will support the expansion of the store and food service formats beyond service stations and will help develop ORLEN’s own network of parcel pick-up points.
  
  

• In the Upstream segment, the exploration and production efforts are continued with a view to increasing output and securing a wider access to own resources of hydrocarbons based on the scenario of prudent continuation.

For more information about important projects carried out in 2020, see ‘About the ORLEN Group’  and ‘Delivery of investment plans’ .