Permit for greenhouse gases emission for a new block in "Kozienice" Power Plant

On 30 June 2011 the Mazovieckie Province Marshall issued a permit to Elektrownia "Kozienice" S.A. for emission of greenhouse gases from the following installation: A new energetic block No. 11 with the capacity of 1000 MWe, located on the area of Elektrownia "Kozienice" S.A. The decision also specifies the detailed requirements within monitoring of the volume of carbon dioxide emission. The permit was issued for ten years.

Presently Elektrownia "Kozienice" S.A. has been conducting a tender in the mode of negotiations with a notice for „Construction of a hard coal-fired energetic block for supercritical parameters with a net capacity of 900 MWe, maximum of 1000 MWe, according to the provisions of the Act of 29 January 2004 - Law on Public Procurement. Works relating to the construction of a new block in Elektrownia "Kozienice" S.A were commenced in 2007. Energoprojekt - Warszawa S.A. studio design conducted the investment validity analysis. In 2008 the block Feasibility Studium was performed.

Till 31 December 2008 numerous works connected with the investment were executed. Geological tests of the soil designated for the block construction were performed, objects interfering with the construction were pulled down, the land designated for the investment was levelled and fenced. In 2008 an Agreement with PSE Operator S.A. was executed concerning connection to the power transmission grid of the block No. 11 in Elektrownia "Kozienice" S.A.

Commencement of the works connected with the construction of a new energetic block enabled achievement of free allowances for emission of CO2. Within granted derogations member states may provisionally allocate (maximally from 70% in 2013 to 0% in 2020) free allowances to installations generating electric energy which functioned before 31 December 2008, and also to installations generating electric energy in the case of which the investment process had been actually commenced till that day. The condition was fulfilled by the new block of Elektrownia "Kozienice" S.A.

Elektrownia "Kozienice" S.A wishes to use the best available technology so that the block, due to work on supercritical parameters, has a net capacity of a minimum of 44.5%. The block will be equipped in any latest ecological installations together with a possibility of extending it in the future with an installation for captation of carbon dioxide from the combustion gas. An estimated cost of the investment is to amount to 5.3-5.5 billion PLN. The start-up of the unit is anticipated for 2016.

CO2 emission allowances

Trading with rights to emit CO2 is one of the instruments of the national ecological policy aiming at limitation of emission of substances deleterious to the atmosphere. The Process of Emission Trading consist in defining of a collective limit of CO2 emissions for a given period for a given state and then allocation according to a specific algorithm of an allowable volume of emissions to installations covered with the trading system. Particular sectors of the economy and installations within the sector receive a relevant number of CO2 allowances imposing a maximal volume of emissions that a given installation may let out into the atmosphere. Limits for particular installations may be found in the National Plan of Allowances Allocation. The allowances are negotiable among users of the system. Exceeding of the allowance limit means a necessity of payment of a high fine.

The draft allocation of CO2 emission allowances for 2008-2012 - KPRU II - assumes the amount equal to 9,636,619 t for Elektrownia "Kozienice" S.A. which results in a planned production of electric energy in the amount of 11.2 TWh gross (10.5 TWh - without own needs).