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Orlen SAOrlen energy expects decarbonisation costs at PLN 183 bln by 2035
Poland's largest energy concern Orlen estimates the cost of decarbonisation at PLN 183 billion (EUR 42.75 bln) by 2035, including PLN 144 billion (EUR 33.64 bln) in power and heat, PLN 36 billion (EUR 8.4 bln) in transport and industry and PLN 2 billion (EUR 467.2 mln) in upstream, group representatives said.
"From the Orlen Group's perspective, the trend is clear for us [decarbonisation - PAP ed.]. We are fully aware that we have to fit into this trajectory [of climate neutrality by 2050]," head of the international regulation office at Orlen Damian Fogel told reporters.
He added that the key challenge for the company is the European Commission's approach to meeting this target (leapfrogging or linear) and financing.
As Fogel pointed out, the decarbonisation cost estimate of PLN 183 billion (EUR 42.75 bln) is based on the company's strategy for the next 10 years and this is what the company is able to finance based on its own resources and loans.
"If more would be needed (in the event of a leapfrogging approach), then we would need external financing for this, i.e. state aid for decarbonisation," he explained.
The 'leapfrogging' approach assumes a 90 percent reduction in CO2 emissions in the EU by 2040. The EC has announced such a legislative proposal, but this is currently under discussion in the EU and the industry is hoping for a softening of the approach.
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