Poland's ZAP finds new partner for power plant project

31 May 2011 17:26  [Source: ICIS news]

LONDON (ICIS)--Zaklady Azotowe Pulawy (ZAP) will push ahead with a plan to build a zloty (Zl) 3bn ($1.1bn, €750m) power plant having found a new joint-venture partner for the project, the Polish fertilizer, melamine and caprolactam (capro) producer said on Tuesday.

ZAP initially hoped to go ahead with a 50:50 venture to build a power or power-and-heat plant with Swedish energy producer Vattenfall in Pulawy, eastern Poland. However, following Vattenfall’s withdrawal, ZAP will keep the project on track by cooperating with Polish electricity company PGE instead, it added.

“The fertilizer industry in the EU needs to undertake investment activities in energy supply,” ZAP CEO Pawel Jarczewski said.

“ZAP is aware that due to the rising costs of emissions in the EU it should look for long-term strategic solutions with a competitive advantage in the energy production field,” he added.

Under the original plan with Vattenfall, the power plant would have had a capacity of 1,400MW. ZAP said the new agreement with PGE is for a capacity of 840MW.

ZAP would consume 200MW of the generated electricity with the remainder sold through the national grid, the company said.

The project will be implemented from 2013 to 2016 via special-purpose vehicle Melamina III, while ZAP’s contribution to the project will be in the form of real estate on which the plant will be built, it added.

ZAP is located in Pulawy, with a melamine nameplate capacity of 96,000 tonnes/year.

($1 = Zl 2.79, €1 = Zl 3.98)

For more on melamine and capro, visit ICIS pricing fertilizers

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