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Green energy in JSW - strategic loan for environmental projects

Jastrzębska Spółka Węglowa has signed an agreement with the National Fund for Environmental Protection and Water Management for a loan of PLN 85 million to finance the “Commercial Methane Utilization - KWK Budryk” project.

photos: Dawid Lach

The agreement, signed on 4 October at JSW's headquarters, aims to support innovative environmental and sustainable development activities. The agreement was signed in the presence of Marek Wesoły, Deputy Minister of State Assets, by Tomasz Cudny, President of the JSW Management Board, Dominik Bąk, Deputy President of the National Fund for Environmental Protection and Water Management, and Wojciech Kałuża, Vice-President of the JSW Management Board for Development.

- Thank you for this initiative. I want to emphasize that we are aware of the dangers that mining creates, and we know very well on which levels we should make changes - said Marek Wesoły, Deputy Minister at the Ministry of State Assets. - I welcome any situation that brings financing to mining companies. Let's remember that today Jastrzębska Spółka Węglowa secures our development through the production of coking coal and enables the production of steel, needed for the energy transition - stressed Deputy Minister Marek Wesoły.

The proceeds from the loan are earmarked to finance projects to reduce the environmental impact of mining operations and promote nature-friendly solutions. The total cost of the project was PLN 88,165,130, so the loan will cover 96.4 percent of the cost.

- I am pleased that we have received financial support for our environmental projects, which we are implementing in accordance with the environmental strategy adopted by the JSW Group - stresses Tomasz Cudny, President of the JSW Management Board. - We are pleased to be able to cooperate with the National Fund for Environmental Protection and Water Management, which actively supports environmental projects implemented, not only by JSW SA, but also by other companies in our Group. Let me remind you that not long ago JSW Koks received PLN 150 million of support for the construction of the Radlin Combined Heat and Power Plant. Thank you - the JSW President said.

The project under the name “Commercial Methane Utilization - KWK Budryk” concerns the reduction of methane hazard by increasing the efficiency of methane drainage and reduction of methane emissions to the environment by 13 thousand tons per year through its use in cogeneration units producing electricity and heat. CO2 emissions will also be reduced by 328.5 thousand tons per annum. In addition, the implementation of the project will reduce the amount of energy purchased from external suppliers and reduce the fees associated with methane emissions into the atmosphere.

The scope of the project at the Budryk mine included the construction of six cogeneration units with a total capacity of 20 MWe, producing up to 120,000 MWh of electricity per year. In addition, the main switchboard at the VI shaft site was built, and the methane drainage pipelines and other technical infrastructure were expanded.

Dominik Bąk, Vice-President of the Management Board of the National Fund for Environmental Protection and Water Management, stresses the importance of this project.

- The project involves the construction of infrastructure that will enable the utilization of methane extracted from the mine in the methane drainage process to generate electricity and heat by Jastrzębska Spółka Węglowa SA. The project concerns the utilization of methane from the Budryk mine and the generation of energy to be used mainly by this mine - said Dominik Bąk.

The period for which the loan agreement was signed covers the years from 2023 to 2030.

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