Poland Coal Gasification

Poland is the largest producer of hard coal in the European Union (63 million tons in 2018), and coal is the basis of Poland’s power generation mix - 86% of electric power is produced by coal-fired power plants.  Coal gasification technology, production of syngas from hard coal, is considered by the government as an opportunity for Polish coal mining to provide ecological fuel for the power generation industry as well as substitute of natural gas for the chemical industry.  Use of syngas in the chemical industry would decrease demand for imported natural gas (60% of natural gas consumed in Poland is imported).

Currently, there are two coal gasification projects that are in the initial stage of development in Poland:

1)  Tauron, a state -owned power and hard coal producer Tauron and Grupa Azoty have been working on coal gasification to produce methanol and ammonia for Grupa Azoty. Project has been developed since 2017 and launching of FEED (Front End Engineering Design) phase is planned for the end of 2020;

2)  Enea, a state-owned power utility Enea has been analyzing construction of 500 MW power generation plant in IGCC (Integrated Gasification Combined Cycle) technology. The plant would be a joint project of Enea and Bogdanka hard coal mine, which belongs to Enea.  The power plant is going to be built in Stara Wies (Lublin voivodship), close to Bogdanka mine that would provide hard coal for surface gasification. IGCC plant would meet strict European Union requirements regarding allowable carbon emissions level described in the EU winter package.  It would be the world’s largest IGCC power plant, since currently largest IGCC block that operates in Japan is of 250 MW power. Enea has been considering partnership with Japan to use their IGCC technology based on equity investment in Poland’s project.  According to the Poland’s Minister of Energy Tchorzewski, the construction of IGCC power plant in Stara Wies may start in 2020. The economic viability of both projects is still subject of analyzing and determination.