Financing secured for Cracow CHP plant conversion

The European Bank for Reconstruction and Development (EBRD) is providing a long term loan of up to $82m (€75m) for the conversion of a combined heat and power plant belonging to TAMEH Polska.

The CHP plant located at Cracow’s ArcelorMittal steel plant, will see it being transformed into a gas-fired unit, helping Poland meet its EU carbon emission reduction targets.
The Financial website reports that 200,000 tonnes of CO2 will be prevented each year once the conversion is complete, bringing the plant into compliance with European Union (EU) environmental requirements resulting from the Industrial Emissions Directive, which is coming into force in Poland in autumn 2018.

The EBRD funds will be provided to TAMEH Polska, a joint venture between the ArcelorMittal Group, the world’s leading integrated steel company, and Tauron, a Polish energy utility company.

TAMEH Polska provides the Polish steel plants of ArcelorMittal in Kraków and Dabrowa Gornicza with electricity, heat, blast and compressed air. The loan will finance an investment programme in Kraków which will not only benefit the environment but is also expected to set standards of corporate governance and business conduct.

The EBRD launched its Green Economy Transition approach last year, under which the Bank aims to increase green financing to 40 per cent of its total annual investments by 2020 compared with a target share of 25 per cent over the previous five years.

Frederic Lucenet, EBRD Head of Manufacturing and Services, said: “Poland remains heavily reliant on coal-powered plants and urgent steps are needed in order to fulfil the country’s climate change obligations. The conversion of the Kraków plant shows a possible way forward and we expect this to become an example others will want to follow.”

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