Energy
Improvement of energy efficiency in technological processes is among the key challenges faced by the Group companies. We are continuously streamlining our processes and implementing energy saving initiatives.
Improvement of energy efficiency in technological processes is among the key challenges faced by the Group companies. We are continuously streamlining our processes and implementing energy saving initiatives.
All heat used by Grupa Azoty S.A. is generated internally. Electricity comes from own generation sources or is purchased from third parties. Compared with 2019, the production of electricity and heat fell slightly due to a change in demand from technological processes.
Grupa Azoty Kędzierzyn uses process steam obtained from fine coal-fired steam generators. Part of electricity for its production plants is generated by turbines, with the balance is purchased from third-party suppliers.
BEST PRACTICE
At Grupa Azoty Kędzierzyn, work is under way to deliver a key project aimed at ensuring the company’s energy security and at driving down the consumption of primary raw materials, carbon dioxide emissions, and energy intensity of the company’s core production. The new concept is a completely novel approach to in-house power generation, increasing the use of thermal energy from ammonia production processes, which will be harnessed to produce energy carriers and electricity in cogeneration.
The project will ensure steady supply of high-pressure steam from the fertilizer production unit and eliminate the need to build another pulverised-fuel steam generator, driving down CAPEX by nearly PLN 200 million and current operating costs by about PLN 30 million per year. Thus the Company will be able to:
- improve energy efficiency through lower consumption of raw materials and, indirectly, reduced depletion of the country’s natural resources, and will significantly cut down emissions of carbon dioxide and other volatile compounds produced when burning coal;
- reduce annual coal consumption by approximately 126 tonnes per year, and thus CO2 emission allowances (by 248 tonnes per year), while electricity consumption will increase, but will ultimately be to a large extent met by energy from renewable sources;
- adapt its in-house power generation to the requirements of environmental protection and complete the modernisation process, as well as ensure energy security for years to come.
Implementation of the new concept based on the abovementioned methods designed to reduce raw material consumption and emissions to the environment, including CO2 emissions, will significantly reduce adverse climate impacts of the Kędzierzyn plant and improve its competitiveness.
In March 2021, an ISO 50001 energy review was carried out. It involved gathering all information on energy consumed by the organisation and confirmed that Grupa Azoty Puławy’s total consumption of final energy (electricity and heat), as well as gas for energy generation purposes was 20,247,671 GJ in 2020.
Grupa Azoty Police mainly uses heat (process steam) generated from its own sources (fired with fine coal), purchased from a local supplier, and recovered from technological processes. Electricity consumed by Grupa Azoty Police comes from its own steam turbines or is purchased from an external supplier, as is natural gas.
Energy consumption within the organisation, including information on the type of energy carrier used
Fuels used to generate electricity by category of energy carrier (GJ)
| Category of energy carrier* | Grupa Azoty S.A. | Grupa Azoty KĘDZIERZYN | Grupa Azoty PUŁAWY | Grupa Azoty POLICE | ||||
| 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | |
| Steam heat | 0 | 0 | 0 | 0 | 0 | 0 | 2,015,947 | 1,517,373 |
| Natural gas and high-methane natural gas | 941 | 14,785 | 0 | 0 | 3,878 | 4,136 | 0 | 0 |
| MEAK | 0 | 0 | 0 | 0 | 95,971 | 74,210 | 0 | 0 |
| Mazut | 23,166 | 0 | 0 | 0 | 0 | 0 | 3,806 | 1,693 |
| Fine coal and thermal coal | 3,332,252 | 2,888,584 | 1,160,189 | 952,668 | 2,844,367 | 2,440,631 | 1,711,542 | 1,239,060 |
| Fuel oil | 0 | 11,028 | 1,601 | 1,025 | 0 | 0 | 0 | 0 |
| Total | 3,356,359 | 2,914,397 | 1,161,790 | 953,693 | 2,944,216 | 2,518,977 | 3,731,295 | 2,758,126 |
*All categories of fuels used in electricity generation are derived from non-renewable energy sources.
| Grupa Azoty S.A. | Grupa Azoty KĘDZIERZYN | Grupa Azoty PUŁAWY | Grupa Azoty POLICE | |||||
| 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | |
| Electricity, heat, cooling and steam purchased for consumption (GJ) | 793,497 | 816,390 | 1,154,268 | 1,174,947 | 3,902,500 | 3,973,150 | 1,420,619 | 1,581,432 |
| Electricity, heat, cooling and steam generated by the organisation (GJ) | 2,513,441 | 2,308,762 | 6,145,491 | 6,230,807 | 17,477,677 | 16,581,682 | 7,968,229 | 9,328,019 |
| Electricity, heat, cooling and steam sold by the organisation (GJ) | 341,583 | 325,052 | 1,730,167 | 1,496,754 | 1,336,318 | 1,266,193 | 614,380 | 454,755 |
| Total energy consumption within the organisation (GJ) | 2,965,355 | 2,800,100 | 5,569,592 | 5,909,000 | 20,043,859 | 19,288,639 | 8,774,468 | 10,454,696 |
Energy intensity ratio (EIR)1 [%]
| Grupa Azoty KĘDZIERZYN | Grupa Azoty POLICE | Grupa Azoty PUŁAWY | Grupa Azoty S.A. | |||||
| Year | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 |
| Total | 26.29 | 33.64 | 31.01 | 33.04 | 42.17 | 47.51 | 41.27 | 50.55 |
| Relative to 2019 | up by 41% | up by 6% | up by 13% | up by 22% | ||||
1 Pursuant to the Regulation of the Minister of Climate on the method of calculating the electricity intensity ratio by industrial consumers, the ratio is defined as cost of electricity used for own needs to gross added value, calculated as the arithmetic mean from the last three years preceding the year in which the obligation is performed.
The increase in the energy intensity ratio at all companies was attributable to:
- growing average cost of electricity consumption, driven by higher prices of raw materials, materials, CO2 and other emissions;
- a year-on-year decrease in revenue, due to a decline in sales of products and services brought about by the pandemic and other market-related events;
- compensation received under the Act on the Compensation Scheme for Energy-Intensive Sectors and Subsectors of July 19th 2019.
For Grupa Azoty S.A. an additional driver was the amendment to the Regulation of the Minister of Climate on the method of calculating the electricity intensity ratio by industrial consumers, comprising two elements:
- additional cost – cogeneration charge;
- change in the amount of excise duty that the consumer would have paid if it had not benefited from the relief (before the amendment the regulations required that the calculation used excise duty actually recorded as expense, which was lower).
Total savings from reduced energy consumption and improved energy efficiency [GJ]
| Structure level | Grupa Azoty KĘDZIERZYN | Grupa Azoty POLICE | Grupa Azoty PUŁAWY | Grupa Azoty S.A. | ||||
| Year | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 |
| Total savings from reduced energy consumption and improved energy efficiency [GJ] | 0 | 8,550 | 5,547,300 | 51,001 | 222,700 | 74,637 | 187,914 | 11,177 |
All Group companies take steps to reduce their energy consumption.
Grupa Azoty S.A.:
- Placing in service the K-6 cooling tower for the Lactam Department
- Expansion of the technical-grade nitric acid storage unit with the unloading/loading station for tanker trucks
- Replacement of a lighting system at the Pompownia T transformer station
Grupa Azoty KĘDZIERZYN:
- Thermal upgrading projects in the Oxoplast, Fertilizers and Energy segments, producing annual energy savings of over 8,500 GJ
Grupa Azoty PUŁAWY:
- Replacement of the regranulate production unit; confirmed effect: savings of approximately 828 GJ
- Upgrade of the unit for CO2 absorption in potassium carbonate solutions, with savings of approximately 68,700 GJ achieved through reduced steam consumption
- Purchase of a 16 MVA oil transformer with a rated voltage of 30/6 kV, producing savings of approximately 645 GJ
- Purchase and installation of steam generators for the nitric acid unit, reducing partial savings of approximately 4,464 GJ
Grupa Azoty POLICE:
- Revitalisation of heat exchangers;
- Repair of pumping units, changes in the power supply and control systems;
- Regular replacement of luminaires.
