Power-to-Gas – the PGE Group and GAZ

12 May 2015
Press release
Power-to-Gas – the PGE Group and GAZ-SYSTEM S.A. have started a common
project
PGE Polska Grupa Energetyczna and Gas Transmission Operator GAZ-SYSTEM S.A. are working on
the application of energy storage technology, involving the transformation of electricity into
another energy-bearing medium, namely into gaseous fuel. The representatives of the two
companies signed a letter of intent on the preparation of a “Feasibility study of the construction
of a Power-to-Gas installation” on 12 May 2015.
PGE Polska Grupa Energetyczna and Gas Transmission Operator GAZ-SYSTEM selected the
preparation of the “Feasibility study of the construction of a Power-to-Gas installation” from among
the list of basic development projects of a common area of interest. The study will be prepared
in 2015.
In accordance with the initial assumptions, the intention of the Power-to-Gas installation will be
to store surplus electricity produced by wind farms by converting the excess electricity into the fuel
of the future, namely hydrogen. This will be made possible through the process of electrolysis, while
the hydrogen obtained in this way can be pumped into the gas network and will be further used
as a zero-emission energy medium. The storage of surplus electricity is one of the main challenges
currently faced by the electricity sector. Other than the ability to assure uninterrupted supplies
of natural gas to consumers, the national network of gas transmission pipelines also has the
capability to store energy in the form of other gaseous fuels, including hydrogen.
“The PGE Group is the leader on the electricity market in Poland and sets itself the objective
of searching for innovative projects which increase the value of the business. The establishment of the
cooperation with GAZ-SYSTEM will enable the electricity and gas infrastructure to be operationally
connected to the benefit of both partners and will improve the level of the country’s energy security,”
says Marek Woszczyk, President of the Management Board of PGE Polska Grupa Energetyczna.
“The successful construction of the Power-to-Gas installation could lead to the production of lowemission fuels of the future and therefore perfectly suits the PGE Group, which is rapidly diversifying
its energy mix. The Power-to-Gas installation is also attractive to us, because it can enable the
utilization of surplus electricity from the PGE Group’s wind park, which will grow by more than 200
MW of new capacity by the end of this year and will amount to more than 500 MW.
The construction of a Power-to-Gas installation is one of the elements of creating an intelligent gas
network. GAZ-SYSTEM S.A.’s cooperation with the electricity sector will enable the development
of our company in completely new areas. The implementation of this project will make it possible
to offer new services, while improving the efficiency of the infrastructure used. As a leader in initiating
new solutions and actively shaping the gas sector in Poland, we want to achieve synergy by working
with other energy companies in order to strengthen the whole of the energy sector.” says Jan
Chadam, President of the Management Board of GAZ-SYSTEM S.A.
In accordance with the provisions of the letter of intent, the companies will hold a tender to contract
for the preparation of the “Feasibility study of the construction of a Power-to-Gas installation.”
At the same time, a Working Party consisting of representatives of PGE Polska Grupa Energetyczna
and Gas Transmission Operator GAZ-SYSTEM S.A. will be appointed, which will be responsible for
organizing and coordinating the work related to the preparation of the Feasibility Study. After it is
complete, a decision will be made on the next steps regarding possible cooperation in the
implementation of selected projects.
Additional information for the media:
PGE Polska Grupa Energetyczna
Maciej Szczepaniuk
Press Officer
+48 (22) 340 11 21
+48 785 092 211
biuro.prasowe@gkpge.pl
http://www.gkpge.pl/biuro-prasowe/kontakt
GAZ-SYSTEM S.A.
Małgorzata Polkowska
Press Officer
22 220 15 46
691 911 217
pr@gaz-system.pl
***
The PGE Group is Poland’s largest company in the energy sector in terms of sales revenues and profit. The combination of its own fuel
resources, power generation and distribution networks means that PGE guarantees secure and stable supplies of electricity to over 5
million customers. The PGE Group’s business encompasses lignite mining, electricity and heat generation, wholesale trade, distribution and
sales of electricity. Within the Group, PGE Polska Grupa Energetyczna S.A., PGE Górnictwo i Energetyka Konwencjonalna S.A., PGE Energia
Odnawialna S.A., PGE Energia Natury S.A., PGE EJ1 sp. z o.o., PGE Dystrybucja S.A. and PGE Obrót S.A. are responsible for integrating
operations in the individual segments. The PGE Group is the undisputed leader in terms of installed capacity and production volume. The
Group’s share of electricity generation in Poland is approx. 40%, while its share of the electricity distribution market is approx. 26%.
Gas Transmission Operator GAZ-SYSTEM S.A. is a strategic company for the Polish economy, responsible for the transmission of natural
gas and the management of the most important gas pipelines in Poland. GAZ-SYSTEM S.A. was implementing its investment plan in 2009 –
2014, involving the construction of over 1,200 km of new transmission lines. The most important of these arose in north-western and
central Poland. The expansion of the gas pipeline network may be an important element of the North-South Gas Corridor integrating the
natural gas markets of the countries of Central Europe. The projects implemented by GAZ-SYSTEM S.A. and the virtual reversal on the
Yamal pipeline have helped Poland’s energy security improve significantly by increasing the technical import capabilities to 90% of imports
on routes other than from the east (in 2011 it was 9%).