ORLEN ORLEN Group 2017
Integrated Report

Product Responsibility

GRI INDICATORS:
Capitals:

We seek to consistently reduce the energy consumption of the ORLEN Group's production units, thus fostering operational excellence.

  1. Raw and other materials used in production

In its refining and petrochemical operations, the Group processes various raw materials and semi-finished products. Crude oil is the principal raw material used in production, and other feedstocks include biocomponents and chemicals.

Raw materials /  other materials used

Non-renewable raw materials [t]
  PKN ORLEN ORLEN Lietuva Unipetrol
  2017 2016 2017 2016 2017 2016
Crude oil 15,219,558 15,129,586 9,820,529 9,323,372 7,894,288 5,421,666
Other 1,312,039 1,006,848 315,893 508,966 2,510,229 1,322,317
 
Renewable raw materials [t]
  PKN ORLEN ORLEN Lietuva Unipetrol
  2017 2016 2017 2016 2017 2016
Biocomponents 810,499 723,636 52,719 75,480 269,580 215,081

Crude oil consumption 

  Crude oil consuption Share of crude in total feedstocks
  2017 2016 2017 2016
PKN ORLEN 15,219,558 15,129,586 85% 86%
ORLEN Lietuva 9,820,529 9,323,372 96% 94%
Unipetrol 7,894,288 5,421,666 78% 83%
  32,934,376 29,874,624 86% 88%

Crude oil, a non-renewable resource, is purchased for all ORLEN Group refineries as part of an integrated procurement process handled by PKN ORLEN, which purchases oil from external suppliers.

Other materials used in our plants include natural gas, biocomponents and semi-finished products, exchanged mainly between the refinery and the petrochemical plants (they are not primary feedstock).

  1. Consumption of biofuels meeting the sustainability criteria

In order to protect the environment, and in view of the national requirements to ensure the mandatory minimum share of biofuels in transport, the ORLEN Group used over 810,000 tonnes of methyl esters and around 230,000 tonnes of bioethanol.

All the biofuels used by the ORLEN Group in its markets met the sustainability criteria specified in the RES Directive and Fuel Quality Directive.

Volumes of biofuels used by the ORLEN Group – biofuels meeting the sustainability criteria on the Polish, Czech and Lithuanian markets.

  2017 2016 2017 2016 2017 2016 2017 2016
  Poland   Czech Republic*   Lithuania   TOTAL  
Esters [t] 624,866 543,887 143,000 115,789 42,504 39,408 810,369 699,084

of which: produced 
by ORLEN Południe [t]

192,803 148,492 - - - - 192,803 148,492
Bioethanol [t] 185,433 175,811 34,000 40,487 10,210 8,795 229,643 225,093

 

  2017 2016 2017 2016 2017 2016 2017 2016
  Poland   Czech Republic*   Lithuania   TOTAL  
Esters [m3] 707,662 609,813 161,948 131,131 48,136 44,630 917 746 785 574

of which: produced 
by ORLEN Południe [m3]

218,350 131,118 - - - - 218 350 131118
Bioethanol [m3] 234,429 226,042 42,984 51,184 12,908 11 119 290 321 288345

Biocomponents not produced by ORLEN Południe were purchased from third-party suppliers.
*Biocomponents used for blending fuels for the Czech Market.   

  1. Benzene, lead and sulfur content in fuels

The key function of the ORLEN Group refineries is to make liquid fuels that meet relevant standards and regulatory requirements. All processes along the production chain are geared towards producing quality components for fuels that comply with those standards and requirements.

PKN ORLEN production in Płock
Crude oil is separated into fractions (distillates) in fractional distillation units.
At subsequent stages, the distillates are further processed in:

  • Cracking unit
  • Alkylation unit
  • Reforming unit
  • Isomerisation unit
  • Diesel fuel hydrodesulfurisation unit
  • Hydrocracking unit
  • Petroleum tar hydrodesulfurisation unit

where the following processes occur: hydrogenation, conversion of nitrogen and oxygen compounds, cracking of paraffin, olefinic and aromatic hydrocarbons with side chains into hydrocarbons with lower molecular mass, conversion of low-octane C5-C6 aliphatic hydrocarbons into higher-octane isomers, dearomatisation, and demetallisation.

Also, sulfur and benzene are removed to achieve concentration levels ensuring the components meet the required quality standards. The fuel components do not contain lead.

Liquid fuels are made by blending selected components (also biocomponents in the case of some fuel types) and adding boosters and additives according to the blending formula.

ORLEN Południe
The main purpose of the plant is to produce biodiesel (fatty acid methyl esters).

The key steps in FAME production include:

  • Chemical degumming
  • Continuous refining
  • Esterification of fatty acids
  • Transesterification of rapeseed oil
  • Washing and drying of biodiesel

during which the following processes occur: removal of phosphorus compounds and free fatty acids from rapeseed oil, reduction of acidity, reacting oil with methanol to form methyl esters, biodiesel washing and drying.

There is no need to use desulfurisation or benzene and lead removal processes.

ORLEN Lietuva
Crude oil is separated into fractions (distillates) in fractional distillation units.

At subsequent stages, the distillates are further processed in:

  • Cracking unit
  • Reforming unit
  • Isomerisation unit
  • Visbreaking unit
  • Oligomerisation unit
  • Diesel fuel hydrodesulfurisation unit

where the following processes occur: hydrogenation, conversion of nitrogen and oxygen compounds, cracking of paraffin, olefinic and aromatic hydrocarbons with side chains into hydrocarbons with lower molecular mass, conversion of low-octane C5-C6 aliphatic hydrocarbons into higher-octane isomers, dearomatisation, and demetallisation.

Also, sulfur, benzene and lead are removed to achieve concentration levels ensuring the components meet the required quality standards.

Liquid fuels are made by blending appropriate components (also biocomponents in the case of some fuel types) and adding boosters and additives in accordance with the blending formula.

UNIPETROL RPA – Litvinov and Kralupy refineries
Crude oil is separated into fractions (distillates) in fractional distillation units.

At subsequent stages, the distillates are further processed in:

  • Cracking unit
  • Reforming unit
  • Isomerisation unit
  • Diesel fuel hydrodesulfurisation unit
  • Hydrocracking unit
  • Visbreaking unit

where the following processes occur: hydrogenation, conversion of nitrogen and oxygen compounds, cracking of paraffin, olefinic and aromatic hydrocarbons with side chains into hydrocarbons with lower molecular mass, conversion of low-octane C5-C6 aliphatic hydrocarbons into higher-octane isomers, dearomatisation, and demetallisation.

Also, sulfur and benzene are removed to achieve concentration levels ensuring the components meet the required quality standards.  The fuel components do not contain lead.

Liquid fuels are made by blending selected components (also biocomponents in the case of some fuel types) and adding boosters and additives according to the blending formula.

Benzene, lead and sulfur content in liquid fuels, by Group companies is presented in this table.

All liquid fuels made and marketed by PKN ORLEN and ORLEN Group companies as finished goods (final products ready for sale) meet the applicable legal and formal requirements and standards for benzene, lead and sulfur content.

  1. Management approach to the Energy aspect

Our main goal is to develop modern sources of electricity and heat, both for consumption by internal users and for sale to  third parties.

An important aspect of our activity is also new projects, such as photovoltaic panels at service stations, wind farms, and the development of electric mobility – a global and increasingly popular trend. At the ORLEN Group, we are committed to continuous efforts towards operational excellence, within such areas as production process optimisation, distribution losses and improved efficiency of process units. Our strategic vision in the Energy area is to transform the ORLEN Group from an energy consumer to an energy producer. All activities to achieve the stated objectives are carried out with due regard for the environment and local communities.

Reducing energy consumption
In 2017, the completed investment projects enabled the ORLEN Group to reduce energy consumption  as follows:

  • Electricity – down by 1,278.79 MWh.
  • Heat in steam – down by 77,772 GJ.

Including:

  • At ANWIL:

Electricity: 82 toe – 953.66 MWh; the reduction was achieved by replacing the TB2 transformer in the CHP plant with a higher energy efficiency unit. The effect was converted into toe in accordance with the energy efficiancy audit and the application for an energy efficiency certificate for this project.

  • At Unipetrol:

Electricity: 325.13 MWh; the reduction was achieved by the modification of the lighting system at the Litvinov CHP plant’s turbine house. The project was completed on March 1st 2017. The savings were calculated as the difference between the annual electricity consumption before and after the upgrade. Consumption of electricity after the upgrade was calculated as the average of volumes measured over 10 months multiplied by 12 to arrive at the annual figure.

  • At the CHP plant in Płock:

Heat in steam: 77,772 GJ; the reduction was achieved by limiting heat losses in the 0.02, 0.65, 1.7 and 3.2 MPa steam distribution systems. The calculations were made in accordance with the Minister of Economy’s Regulation of August 10th 2012 on the detailed scope and method of preparing energy efficiency audits, form of the energy efficiency audit scorecard, and method for calculating energy savings (Dz.U. of 2012, item 962).

The savings were calculated based on data from PKN ORLEN, Unipetrol and ORLEN Lietuva. The main criterion in selecting the reporting companies was their business materiality for the Energy area. The figures are for the Energy area only, i.e. for the CHP and CCGT units.

The organisation's energy consumption

  GJ MWh
Energy consumption in fuels: 83,280,501 23,133,472

Electricity consumption

2,187,400 607,611

Heat consumption

6,252,290 1,736,747

Electricity sold

24,786,031 6,885,009

Heat sold

35,262,356 9,795,099
Total consumption in units* 31,671,804 8,797,723

*Total consumption in units’ has been calculated as the difference in the consumption of particular units  (in fuels and for own needs) and the sale of particular units to internal and external customers.

The basis for the calculations was data from tariff metering instruments. The figures presented in the table are for the Energy area only, i.e. for the CHP and CCGT units, and comprise data for the companies with the highest consumption and production volumes (CHP plant in Płock, CCGT unit in Włocławek, Anwil CHP plant, Litvinov CHP plant, and Mažeikiai CHP plant).

Key projects in the Energy area planned for 2018

  • Launch of the CCGT unit in Płock,
  • Installation of fast charging stations for electric vehicles (minimum 50 kW) at PKN ORLEN service stations located at expressways in 2018–2019, in order to enable electric cars to travel across Poland.
  1. Product and service labelling

The ORLEN Group‘s obligation to provide information on potential hazards associated with the chemicals it manufactures or imports follows from international and EU laws. The scope and division of responsibilities at the Group companies are defined in internal regulations.

Safety data sheets, developed in accordance with the REACH Regulation, are the basic source of information on the classification and hazards for the chemicals manufactured or imported by the ORLEN Group companies.

Products are classified based on research and expert knowledge of their properties, and the classification makes it possible to  label them correctly (in accordance with the CLP Regulation) and identify risks in transport, based on which the dispatchers prepare the ADR labels (hazard warning labels).

Safety data sheets are mainly a source of information on products intended for industrial and professional applications. In the case of products marketed directly for use by general consumers, the relevant information is provided by ORLEN Group companies by appropriate labelling of product packaging.

Labels on product packaging contain, in addition to pictograms, appropriate hazard statements (H statements) and precautionary statements (P statements). Given the wide range of applications of ORLEN Group products, information on product packaging is supplemented with detailed data required under specific legal provisions applicable to detergents, fertilizers, etc.



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