Polish state-owned energy company ORLEN announced it has obtained over 1.7 billion zloty ($458.3 million) in grants from the European Union’s post-pandemic recovery funds to enhance its hydrogen energy initiatives. This funding, confirmed on June 16, will facilitate the production of hydrogen using renewable energy sources and establish the infrastructure necessary for hydrogen fuel utilization in Central Europe.
Hydrogen is a central element in ORLEN’s strategy to transition away from fossil fuels. The company aims to achieve a production capacity equivalent to 900 megawatts (MW) of hydrogen fuel by 2035, with most of the production located in Poland.
The grants are part of Poland’s National Recovery and Resilience Plan, which allocates EU funds aimed at aiding member states in their economic recovery following the COVID-19 pandemic. Specifically, the funding will support two key projects: Green H2 and Hydrogen Eagle, both focused on generating hydrogen through renewable energy and converting municipal waste into hydrogen.
Ireneusz Fąfara, ORLEN’s CEO, stated that the secured funding would expedite advancements in the hydrogen sector. It will enable the company to expand its hydrogen production infrastructure more effectively and bolster Poland’s hydrogen supply network, contributing to broader European efforts.
In relation to broader energy improvements, PGE Polska Grupa Energetyczna, Poland’s largest state-owned power utility, secured over 12 billion zloty ($3.2 billion) in loans for power network upgrades in March, while Polskie Sieci Elektroenergetyczne, the national grid operator, received 1.3 billion zloty ($349 million) in May for electricity transmission projects. EU recovery funds mandate that at least 37% of allocated funds be used for climate-related projects.
Poland’s climate ministry reported that it has signed 260 contracts totaling nearly 60 billion zloty ($16.1 billion) under the National Recovery and Resilience Plan, targeting renewable energy projects, power grid enhancements, and electric vehicle subsidies.
As part of the Green H2 initiative, ORLEN is constructing a facility in Gdańsk that will incorporate a 100-MW electrolyzer powered by renewable energy to produce hydrogen for its refining operations. Collaborating with Hystar, a Norwegian manufacturer of high-efficiency electrolyzers, ORLEN aims to support its hydrogen expansion. Grzegorz Jóźwiak, the director of Hydrogen Technologies and Synthetic Fuels at ORLEN, noted that this venture capital investment in Hystar is vital for advancing ORLEN’s hydrogen portfolio. The innovative technology is anticipated to produce 1.5 gigawatts (GW) of high-efficiency membrane electrolyzers by 2027, providing both equipment and technical expertise crucial for the company’s strategic objectives.
The Hydrogen Eagle project, initiated in 2022, includes plans to establish nine hydrogen hubs for production and distribution across Poland, the Czech Republic, and Slovakia, utilizing renewable energy, particularly solar and wind, along with municipal waste.
Furthermore, ORLEN is developing a hydrogen refueling station network for various transport vehicles, including cars, trucks, and buses. The company inaugurated its first two public hydrogen refueling stations in Poland last year. ORLEN aims to operate 111 hydrogen refueling stations by 2030, with approximately half located in Poland and the remainder distributed across the Czech Republic and Slovakia.
According to a report from Biznes Alert, ORLEN plans to invest at least €150 million ($172 million) in the coming years to establish hydrogen production and distribution facilities specifically for the transportation sector.
