TAURON Polska Energia signed with the Investment Funds managed by the Polish Development Fund (PFR) an investment agreement and shareholders agreement specifying conditions for the involvement in the construction of the 910 MW power unit in Jaworzno. The PFR will invest PLN 880 million in the construction.
“I am glad that new investments in the energy sector are being implemented. As a result, the energy sector will be ready for the challenges it will face in the coming years. The construction of the 910 MW power unit in Jaworzno is a critical investment. The new unit will produce up to 6.5 TWh of electricity a year, which could supply 2.5 million households” - said the Minister of Energy, Krzysztof Tchórzewski.
“Agreements with Investment Funds are another of the series of initiatives we have undertaken. They have allowed guaranteeing the financial resources necessary for the further development of the Group and our investments” - highlights Filip Grzegorczyk, President of the Management Board of TAURON Polska Energia. “The construction of the 910 MW unit in Jaworzno is currently the largest venture underway in the Group’s investment programme. We are engaging our resources in new generation capacity, while ensuring the appropriate modelling of the financing structure that allows keeping the debt ratios at a safe level so that the Group remains financially stable” - added the President.
The parties to the investment agreement and the shareholders agreement are TAURON Polska Energia S.A., Nowe Jaworzno Grupa TAURON Sp. z o.o. and Fundusz Inwestycji Infrastrukturalnych - Kapitałowy Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych (Infrastructure Fund - Closed Capital Investment Fund of Non-Public Assets) and Fundusz Inwestycji Infrastrukturalnych - Dłużny Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych (Infrastructure Fund - Closed Debt Investment Fund of Non-Public Assets), with part of their investment portfolio managed by Polski Fundusz Rozwoju S.A.
“The financial engagement in the construction of the unit in Jaworzno is perfectly in line with the investment policy of the infrastructural funds we manage and the PFR strategy, the main purpose of which is to promote the processes of the creation of assets which are crucial for the Polish economy. New generating sources, such as the unit in Jaworzno, guarantee the energy security of Poland within the horizon of several consecutive decades” - said Paweł Borys, President of the Management Board of the Polish Development Fund.
On the basis of the concluded agreements, the Funds will invest a total of PLN 880 million by acquiring new shares in the special purpose vehicle Nowe Jaworzno Grupa TAURON Sp. z o.o. (NJGT), currently a single-member company of TAURON Polska Energia, which will carry out the construction of the 910 MW power unit in Jaworzno.
“In close cooperation with the TAURON team, we were able to develop the investment conditions which take into account the existing structure and the implementation of the project, while maintaining the model criteria of our investments. We will be able to use the experience gained at Jaworzno in further investments of the funds in the energy sector” - added Marcin Piasecki, Vice President of the Polish Development Fund.
The participation of the Funds in the share capital of NJGT on the day of putting the power unit into service should be approx. 14%, whereas the participation of TAURON Polska Energia S.A. - at least 50% + 1 share.
The conclusion of the aforementioned agreements with the Funds provides an important element in the implementation of the TAURON Group’s strategy for 2016-2025, in the scope of the construction of the 910 MW unit in Jaworzno in the financing formula that involves the acquisition of the NJGT shares by external partners.
The time to invest the resources by the Funds depends on the fulfilment of certain conditions precedent by TAURON and NJGT, among others on the approval of the concentration and the decision approving the terms of the agreement for the sale of electricity, which is one of the key agreements in the transaction documentation.
The company Nowe Jaworzno Grupa TAURON was established through the separation of an organised part of the enterprise from TAURON Wytwarzanie and commenced operations in April 2017. The establishment of a separate entity dedicated to the implementation of the specific investment allows for limiting the impact of the investment-related expenditure on the balance sheet of the TAURON Group.
The current progress of the construction of the 910MW unit in Jaworzno has exceeded 60%.
The unit will be adapted to meet stringent environmental protection standards, significantly reducing CO2 emissions and other gas emissions.
The unit, with the net efficiency of 45.9%, is being built in coal technology for supercritical parameters with the power offtake by the 400 kV line connected to the National Power Grid. The planned annual consumption of coal will be up to 2.8 million tonnes. Most of the fuel will come from the mines of the TAURON Group. The unit will produce up to 6.5 TWh electricity per year, which corresponds to the demand of 2.5 million households.
After completion of the investment, due to the increased efficiency by 10% compared to the units placed in service in the 1970s and 1980s, approximately 2 million tonnes less of CO2 will enter the atmosphere, and in the framework of the climate policy requirements, the unit will be will be prepared for the construction of CO2 capture from flue gas installations (CCS ready).
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The Polish Development Fund Group is a group of financial institutions offering instruments supporting the development of enterprises, local governments and individuals, investing in sustainable social and economic development. It has a professional team and follows top international standards. PFR’s mission is to implement programs which improve the long-term investment and economic potential of Poland, foster equal opportunities and environmental protection. For more information, visit: www.pfr.pl
“Agreements with Investment Funds are another of the series of initiatives we have undertaken. They have allowed guaranteeing the financial resources necessary for the further development of the Group and our investments” - highlights Filip Grzegorczyk, President of the Management Board of TAURON Polska Energia. “The construction of the 910 MW unit in Jaworzno is currently the largest venture underway in the Group’s investment programme. We are engaging our resources in new generation capacity, while ensuring the appropriate modelling of the financing structure that allows keeping the debt ratios at a safe level so that the Group remains financially stable” - added the President.
The parties to the investment agreement and the shareholders agreement are TAURON Polska Energia S.A., Nowe Jaworzno Grupa TAURON Sp. z o.o. and Fundusz Inwestycji Infrastrukturalnych - Kapitałowy Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych (Infrastructure Fund - Closed Capital Investment Fund of Non-Public Assets) and Fundusz Inwestycji Infrastrukturalnych - Dłużny Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych (Infrastructure Fund - Closed Debt Investment Fund of Non-Public Assets), with part of their investment portfolio managed by Polski Fundusz Rozwoju S.A.
“The financial engagement in the construction of the unit in Jaworzno is perfectly in line with the investment policy of the infrastructural funds we manage and the PFR strategy, the main purpose of which is to promote the processes of the creation of assets which are crucial for the Polish economy. New generating sources, such as the unit in Jaworzno, guarantee the energy security of Poland within the horizon of several consecutive decades” - said Paweł Borys, President of the Management Board of the Polish Development Fund.
On the basis of the concluded agreements, the Funds will invest a total of PLN 880 million by acquiring new shares in the special purpose vehicle Nowe Jaworzno Grupa TAURON Sp. z o.o. (NJGT), currently a single-member company of TAURON Polska Energia, which will carry out the construction of the 910 MW power unit in Jaworzno.
“In close cooperation with the TAURON team, we were able to develop the investment conditions which take into account the existing structure and the implementation of the project, while maintaining the model criteria of our investments. We will be able to use the experience gained at Jaworzno in further investments of the funds in the energy sector” - added Marcin Piasecki, Vice President of the Polish Development Fund.
The participation of the Funds in the share capital of NJGT on the day of putting the power unit into service should be approx. 14%, whereas the participation of TAURON Polska Energia S.A. - at least 50% + 1 share.
The conclusion of the aforementioned agreements with the Funds provides an important element in the implementation of the TAURON Group’s strategy for 2016-2025, in the scope of the construction of the 910 MW unit in Jaworzno in the financing formula that involves the acquisition of the NJGT shares by external partners.
The time to invest the resources by the Funds depends on the fulfilment of certain conditions precedent by TAURON and NJGT, among others on the approval of the concentration and the decision approving the terms of the agreement for the sale of electricity, which is one of the key agreements in the transaction documentation.
The company Nowe Jaworzno Grupa TAURON was established through the separation of an organised part of the enterprise from TAURON Wytwarzanie and commenced operations in April 2017. The establishment of a separate entity dedicated to the implementation of the specific investment allows for limiting the impact of the investment-related expenditure on the balance sheet of the TAURON Group.
The current progress of the construction of the 910MW unit in Jaworzno has exceeded 60%.
The unit will be adapted to meet stringent environmental protection standards, significantly reducing CO2 emissions and other gas emissions.
The unit, with the net efficiency of 45.9%, is being built in coal technology for supercritical parameters with the power offtake by the 400 kV line connected to the National Power Grid. The planned annual consumption of coal will be up to 2.8 million tonnes. Most of the fuel will come from the mines of the TAURON Group. The unit will produce up to 6.5 TWh electricity per year, which corresponds to the demand of 2.5 million households.
After completion of the investment, due to the increased efficiency by 10% compared to the units placed in service in the 1970s and 1980s, approximately 2 million tonnes less of CO2 will enter the atmosphere, and in the framework of the climate policy requirements, the unit will be will be prepared for the construction of CO2 capture from flue gas installations (CCS ready).
***
The Polish Development Fund Group is a group of financial institutions offering instruments supporting the development of enterprises, local governments and individuals, investing in sustainable social and economic development. It has a professional team and follows top international standards. PFR’s mission is to implement programs which improve the long-term investment and economic potential of Poland, foster equal opportunities and environmental protection. For more information, visit: www.pfr.pl
