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Zielona Góra Thermal-Electric Power Station to use gas instead of coal

2009-01-27

The company’s guiding mission: We are a modern and solid supplier of electric energy and heat to the city of Zielona Góra. We meet expectations of customers and shareholders based on the competence and commitment of our workers who operate in touch with the natural environment

Zielona Góra Thermal-Electric Power Station S.A. is one of the largest plants in Lubuskie Province generating electric energy for the national grid to the tune of 1,250,000 MWh yearly. It also produces 1,630 TJ of heat for the city’s heating system. It employs a staff of 234.

The majority stockholder of this station is Kogeneracja SA – the Wrocław stock exchange quoted company belonging to the Electricite de France Group, a world leader on the electric energy production and distribution market.



Zielona Góra Thermal-Electric Power Station is a modern plant supplying ecologically pure products, in 2008 as much as 83% of the entire heat and 98.8% of the electricity delivered by the gas-steam unit (GSU). The GSU which came on line in August 2004 has an electric power of some 190 MWe and thermal power of around 135 MWt. This unit meets all requirements of the environment standards contained in European Union directives as well as BAT (Best Available Technology). The low-emission gas combustion system used in the gas turbine delivers a lower emission of NO2 than that allowed by set standards. The fuel used is GZ-41.5 nitrogised natural gas delivered over a distance of 100 km through a specially constructed pipeline from Kościan-Brońsko mine in a yearly quantity of around 366 mln Nm3. The generated electric energy is delivered to the National Power Grid over a 220 kV overhead transmission line The GSU was constructed with the support of the EcoFund Foundation in the form of a PLN 40 mln grant which partly financed the purchase of the gas turbine. Over the past dozen years Zielona Góra Thermal-Electric Power Station has progressed from a little-known company to a leader among modern professional thermal-electric power stations. As an instrument in its growth plans, in the past the station concluded strategic long-term contracts for the sales of electric energy (LTC), heat and also of gas supply. Privatisation revenue allowed the purchase of state-of-the-art technologies and the construction and commissioning of a gas-steam unit. Like many other Polish firms, in December 2007 the company abandoned the LTC system. The Act on the principles of covering the costs incurred by power generating companies in connection with the early termination of long-term electric power energy sales guaranteed the company the means to cover orphaned costs and the costs of gas supplies. The European Union accepted this Act as consistent with the principle under which the State may grant public assistance.

The company is presently implementing several projects one of which is to connect the Thermal-Electric Power Station to the Zielona Góra Thermal Power Unit which distributes heat throughout the city. This is to happen on

1 April 2009. This new section, as a Heat Distribution Plant, will mainly deal with the maintenance of the system, heat transmission and customer service.

Yet another project is connected with the introduction of a Quality Monitoring System in line with PN-EN ISO 9001:2008 and its integration with the Integrated Management System functioning within the company, consistent with standards PN-EN ISO 14001:2005 and PN-N-18001:2004.



The most important project concerns modernising and enlarging the coal section. The Thermal-Electric Power Station has a Coal Unit with a thermal power of around 187 MWt, comprising 4 steam boilers and 3 water boilers, 2 turbine generating units of an approximate total electric power of 23 MW. The Coal Unit constitutes a reserve for the total GSU and assists its operation in the winter. In 2008 its boilers used up around 20,000 tonnes of coal.

Due to ecology requirements the Coal Unit will not be allowed to operate after 2015. Since possibilities exist of acquiring amounts of gas from local sources, several modernisation versions of the Coal Unit are being considered. In the first stage the construction of oil and gas fired water boilers is envisaged, the investment to be concluded in 2011. In the next stage the construction of a smaller gas-steam or biomass heating unit is planned together with a steam bleeding-condensing turbine generating unit. These new units will take the place of demolished coal-fired boilers.

The purpose of modernisation of the coal section is to ensure the optimal use of gas in connection with the conditions of granting compensation following the discarding of LTC, reducing emission of pollution to the atmosphere by improving production efficiency and using low-emission fuels such as gas and oil by eliminating the use of coal, guaranteeing full power reserve for the urban heating system, as well as reducing exploitation costs by using solutions limiting labour-consuming servicing. Modernisation is also connected with the introduction of principles of trading rights to emit CO2, changing the definition “source = boiler” to “source = chimney” as well as promoting the production of electric energy from renewable source (green energy) or produced in cogeneration with gas and other fuels. A feasibility study of the project is presently under way, elimination of the use of coal in the company being planned by 2013.















“Zielona Góra” Thermal-Electric Power Station S.A.

ul. Zjednoczenia 105, 65-120 Zielona Góra

www.ec.zgora.pl kancelaria@ec.zgora.pl



Technical and economic data for 2008



Heat Electric energy

Total installed power 322 MW 221.4 MW

including:

coal unit 187 MW 23.4 MW

gas-steam unit 135 MW 198.0 MW



Revenue PLN 351.8 mln

Net profit PLN 40.2 mln

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