ORLEN ORLEN Group 2017
Integrated Report

Capital Expenditure on Environmental Protection

GRI INDICATORS:
Capitals:

Capital expenditure

Most of our investment projects carried out in 2017 involved adaptation of plant and process units to new environmental requirements and standards defined in the EU regulations (BAT Conclusions). Key initiatives undertaken in 2017 also included bringing refinery units in line with the more stringent EU requirements for air emissions, as well as work involving the construction of continuous emission measurement systems and installation of flow meters in flare stacks. Also in 2017, a CCGT unit was placed in operation in Włocławek as a high-efficiency and low-emission electricity and heat generation source. The most important projects carried out at the other ORLEN Group companies included preparatory work to execute tasks related to the implementation of BAT Conclusions for refineries, including installation of CEMS for continuous measurements of SO2, NOx, CO and FCC regenerator dust at ORLEN Lietuva, construction of flare stack at Paramo in the Czech Republic to reduce air emissions of volatile organic compounds, and installation of analyser for continuous measurement of NOx levels at FCC in Kralupy. In addition, the rolling stock of ORLEN KolTrans was modernised – locomotives equipped with modern engines meeting the applicable emission standards and featuring optimised fuel consumption were purchased. Also, a wastewater treatment plant at ORLEN Południe's Trzebinia production plant was constructed, the sewage system and DeNOx unit were reconstructed at Unipetrol, and wastewater treatment equipment was installed at distribution facilities of Ventus Nafta and PKN ORLEN.

Total spending on environmental protection projects by all ORLEN Group companies in 2017 amounted to over EUR 24.8m, of which more than EUR 23.6m was spending on investment projects relating to pollution prevention and environmental protection management, and EUR 1.2 m was the cost of waste disposal and site restoration.

In 2017, spending on projects aimed to reduce the environmental impacts of the Płock production plant was EUR 1.9m (PLN 8.3 m).

Environmental fees

Business entities using the environment are required by law to pay environmental fees. ORLEN Group companies pay environmental fees for air emissions, abstraction of water, discharge of effluents to water and soil, and storage of waste in own landfills.

In 2017, there were no additional fees resulting from failure to correctly calculate the fees or to meet the payment deadline. The amount of the fees paid by ORLEN Group companies depends on how and to what extent the environment is used (water abstraction), on the type of substances released to the environment (air emissions, sewage disposal), and on the fee rates, which are set by the Minister of the Environment for annual periods.

A PLN 830 (EUR 195) fine was paid in 2017 in respect of the Płock production plant for exceeding air emission limits in 2016. The Company did not pay any increased charges for operating without the required environmental permits.

ORLEN Group companies paid a total of EUR 42,397 in fines for exceeding environmental limits, with the amount comprising a EUR 1,140 fine paid by Unipetrol RPA for exceeding effluent discharge limits, a EUR 70 fine paid by ORLEN Południe for non-compliance with the integrated permit as regards air emissions and emissions to soil and water from the bitumen oxidation unit, and a EUR 41,187 fine paid by ORLEN Lietuva for exceeding air emission limits.

An almost 10% year-on-year increase in the total amount of fees for the economic use of the environment was reported in 2017. The increase was primarily driven by increased oil throughput and higher fee rates. In 2017, the aggregate amount of the fees exceeded EUR 17m, the largest portion of which was water abstraction charges paid by eight companies other than PKN ORLEN. A significant drop was seen in charges for waste landfiling, attributable to lower amounts of waste disposed of at the landfill owned by ANWIL.

Environmental fees paid by OLREN Group companies [EUR]

Fee Amount [euro] Amount [euro] change [%]
  2017 2016  
Total air emissions 5,458,151 5,147,891 6.03
Water abstraction 11,234,274 9,911,412 13.35
Discharge of effluents 529,371 612,629 (13.59)
Waste landfilling 42,977 66,742 (35.61)
Total 17,264,773 15,738,675 9.70


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