This partnership will focus on constructing biomethane production facilities, utilizing agricultural and post-production waste, and enhancing the circular economy.
In a significant move set to bolster Poland’s energy security and accelerate its green transition, ORLEN, a leading multi-utility company, and Krajowa Grupa Spozywcza (KGS), the nation’s largest state-owned agri-food group, have formally entered into a memorandum of understanding (MoU). The agreement outlines a comprehensive plan to develop a nationwide biomethane portfolio, with a strong emphasis on constructing new production facilities across the country.
The collaboration is poised to deliver multifaceted benefits, including a substantial reduction in CO2 emissions, a significant enhancement of Poland’s energy independence, and improved overall grid stability. At the core of the MoU is the joint optimization of in-house resources, particularly agricultural and post-production waste, which will serve as crucial feedstock for biomethane generation. Furthermore, the agreement addresses the sustainable application of digestate, a nutrient-rich byproduct of agricultural biogas plants, as a natural fertilizer on secured farmlands.
The initial phase of their cooperation will involve identifying and assessing suitable sites that meet the necessary technical and commercial criteria for biomethane facilities. This process will commence with plots currently owned by KGS, while also keeping other potential locations under active review. Beyond site identification, ORLEN and KGS will work hand-in-hand on the entire lifecycle of biomethane, from production and distribution to securing all requisite administrative consents and obtaining certificates of origin for the renewable fuel.
Grzegorz Bujnowski, Executive Director for Gas Trading at ORLEN, underscored the strategic importance of the initiative. “Biomethane production is a textbook circular-economy solution: it converts waste into fuel and generates measurable value for both local communities and the wider national economy,” Bujnowski commented. He emphasized biomethane’s role as a low-carbon substitute for natural gas, making it integral to the energy-transition agenda, especially for the decarbonization of transport.
Echoing this sentiment, Olga Adamkiewicz, Member of the Management Board at Krajowa Grupa Spozywcza, highlighted the alignment of the partnership with KGS’s growth strategy. “Investing in biogas and biomethane is a logical extension of our innovation and sustainability-led growth strategy,” Adamkiewicz stated.
This partnership is a cornerstone of ORLEN Group’s broader strategy to consolidate its position as a leading alternative-fuels player in the region. The group is actively pursuing a capital program that includes projects in Hydrotreated Vegetable Oil (HVO), bio-ethanol, and biomethane. By 2035, ORLEN aims to deploy up to 0.24 billion cubic meters of biomethane per year to meet its National Indicative Target. This volume will be sourced from a diversified portfolio comprising wholly-owned biomethane plants, joint-venture facilities, and strategic offtake agreements.
