During the climate neutrality panel of the 590 Congress, the PGNiG CEO Paweł Majewski spoke about the initiatives PGNiG was looking to undertake in the short term to provide even more active support to the ongoing energy transition of Poland’s economy.

“We are aware that in the long term natural gas is also set to be affected by the unfolding decarbonisation processes. However, in Polish conditions the shift towards a low- and zero-carbon economy is not feasible without natural gas. This is why PGNiG’s goal is to achieve climate neutrality in the long term. The unveiling of our new strategy, which is already in the works, will be an opportunity to announce detailed plans for the PGNiG Group’s decarbonisation by 2050. Meanwhile, in the coming years, we will focus on making our low-carbon fuel more widely available and on launching key projects related to the so-called “green gases”, that is biomethane and hydrogen,” said Paweł Majewski, President of the PGNiG Management Board.

Actions up to 2026 – reducing emissions

In an effort to help bridge Poland’s energy transition, PGNiG wants to increase the availability of natural gas for Polish households by continuing its grid roll-out work until 2026. By allowing households to replace coal with natural gas as a heating fuel, it will implement measures to reduce emissions on the customer side. Last year alone, the PGNiG Group installed 112 thousand new grid connections and is intent on maintaining that momentum.

At the same time, PGNiG will reduce the carbon intensity of its own processes, primarily in the heat and power generation segment, partially replacing coal with natural gas and other cleaner fuels. It is considering a mix of measures, including construction of a multi-fuel power unit and gas-fired generation sources. To further the necessary change PGNiG has a pipeline of energy efficiency projects and plans to develop its commercial offerings of CNG and LNG. With respect to renewable energy sources, PGNiG’s target is to achieve a combined installed capacity from its wind and PV assets of 900 MW in a timeframe extending beyond 2022.

Actions beyond 2026 – eliminating emissions

Among PGNiG’s long-term decarbonisation initiatives is a plan to step up projects involving biomethane production and grid injection, expansion of RES capacities and use of hydrogen, mainly for the purpose of energy storage inside salt caverns. The use of local geothermal sources is also a viable option.

“In the case of initiatives designed to bring us closer to the goal of climate neutrality, we intend to take advantage of available funding opportunities, including the Modernisation Fund, the Just Transition Fund, and a pool of funds dedicated to important projects of common European interest (IPCEI). Within the next few years, Poland will also receive PLN 770bn of EU funds, a sizeable part of which will be allocated to environment protection and energy transition projects, with PGNiG among their major beneficiaries,” said the PGNiG CEO.

In the longer term, also by tapping these funds, PGNiG will seek to implement projects designed to altogether eliminate emissions. In its own industrial processes it will gradually replace fossil fuels with renewably sourced alternatives and will increasingly feed biomethane and hydrogen into its gas grid. Seeking to eliminate emissions on the customer side, PGNiG intends to promote a shift away from the use of fossil fuels for domestic heating towards heat pumps and local geothermal heat plants, among other solutions.

Credible investor proposition

“PGNiG has embarked on a path of green transition, from which there is no turning back, but we remember that in Poland natural gas is supposed to be a bridge fuel towards a zero-carbon future. Therefore, we want to transform the Group with due consideration given to its role in the entire process,” said Paweł Majewski. “We want to bring about the green transition without compromising the appeal of PGNiG shares to investors, while remaining credible to all those concerned about our environmental impact and social responsibility. We keep monitoring our business against a set of ESG metrics so we can further improve our relations with stakeholders and minimise our environmental footprint. I hope these efforts will be appreciated by the investor community, as their opinion is an important factor behind our capacity to invest and raise capital,” said the PGNiG CEO.