Poland's ZAK orders Zl320m power plant to secure future production

23 May 2014 16:44 Source:ICIS News

LONDON (ICIS)--Poland's Zaklady Azotowe Kedzierzyn (ZAK) said on Friday it has signed a zloty (Zl) 320m (€77m) contract with Rafako for the constuction of a coal-fired power plant that will serve its fertilizer and chemical production.

“Without this investment we would not be able to continue to function as our old power plant is more than 50 years old and its technical condition basically rules out prolonged use,” said ZAK CEO Adam Leszkiewicz.

ZAK, which produces nitrogen fertilizers, oxo-alcohols and dioctyl phthalate (DOP) plasticisers, said the power plant would produce 50 megawatts of electricity and 250 megawatts of heat, and would consume 250,000 tonnes/year of coal.

Some of the heat would be sold to customers in the town of Kedzierzyn-Kozle in southwestern Poland, it added.

The power plant should be ready to go operational by the fourth quarter of 2016, said ZAK, a subsidiary of Poland's largest chemical group, Grupa Azoty.

ZAK has previously considered looking for an investor that would join it in a project to spend around Zl 1.1bn on constructing a 110 MW natural gas-fuelled facility to replace its existing power plant, but has now decided to pursue the cheaper coal option.

Rafako, which offers complete power generation units, belongs to Poland-based PBG Group, Europe's largest manufacturer of boilers.

(€1 = Zl 4.16)

By Will Conroy