Two years ago, ORLEN Group, as the first integrated oil & gas company in Central Europe, unveiled its ambitious decarbonisation targets. Now, the Group is accelerating. In its updated strategy to be implemented by 2030, ORLEN envisages increased investments in renewable energy sources, modern petrochemistry, increased biogas production volumes, and an attractive range of alternative fuels, including a significant increase in the number of electric car chargers. The company will allocate more than PLN 120 billion for green investments, which is around 40% of the capital expenditure planned until 2030. By decarbonising assets and reducing the use of fossil fuels, ORLEN Group will further enhance energy security across the CE region, which appears crucial given the ongoing energy crisis, further aggravated by Russia’s invasion of Ukraine. In addition to its ambitious investments facilitating the realisation of stable profits in a diverse global commodity market environment, ORLEN Group’s updated strategy also envisages an upward trend in dividends, starting at PLN 4 per share.
ORLEN 2030 STRATEGY HIGHLIGHTS:
• ORLEN as the regional energy transition leader;
• 25% absolute reduction in CO2 equivalent emissions in the refining, petrochemicals and excavation segments by 2030;
• 40% reduction in kg CO2 e/MWh in the energy industry by 2030;
• 15% reduction in NCI by 2030;
• carbon neutrality by 2050;
• approx. 40% of outlays on green investments out of an ambitious investment portfolio of approx. EUR 70 billion (PLN 320 billion);
• over 9 GW of installed capacity from RES (onshore and offshore wind farms, photovoltaics);
• over 10,000 electric car charging points in Central Europe;
• approx. EUR 85 billion (PLN 400 billion) of cumulative EBITDA in 2023-2030;
• a diversified portfolio = greater resilience of ORLEN Group to market fluctuations;
• becoming independent of Russian raw materials;
• a confirmed upward trend in dividends and increased attractiveness
“The energy crisis, which began before the war in Ukraine, has made it clear that there is no turning back from energy transition, and ORLEN is perfectly aware of that. In 2020 we were the first company based in Central Europe to announce a strategy to reach carbon neutrality, and a few months later we presented a development vision until 2030. This ambitious, but at the same time realistic, undertaking has bore fruit. We have managed to build a leading energy and fuel concern in CE, which currently generates more than EUR 20 billion (PLN 100 billion) revenue per quarter and is capable of spending approx. EUR 9 billion (PLN 36 billion) on investments per year. This strength is reflected in the updated strategy ‒ the mergers carried out in 2022 with other oil & gas companies in Poland (LOTOS and PGNiG) will enable us to double our outlays to PLN 320 billion by 2030. An impressive 40% of this sum will be spent on green projects reducing our dependence on fossil fuels. The implementation of the strategy will enable us to reduce the consumption of fossil fuels, as well as to generate stable profits, which we want to share with our shareholders”, said Daniel Obajtek, President of the Management Board of PKN ORLEN.