Grupa Azoty, a Polish company, is taking steps to start up a coal gasification installation in cooperation with other companies. This process would allow for the production of methanol or hydrogen from coal, reducing the need for natural gas and generating savings. It would also help develop clean coal technologies and reduce CO2 emissions. However, the project is dependent on favorable economic and legal conditions, including lifting the excise tax on coal used in the gasification process. Grupa Azoty's efforts could change the perception of Polish coal from a challenge to an opportunity for the chemical and energy industry.
'Production of methanol or hydrogen from coal is a well-known process, used in many countries. There are 272 installations of this kind in the world, including 30 in China. Thanks to steps taken by Grupa Azoty, there is an opportunity of making use of Polish “black gold”.' writes Paweł Jarczewski on a Grupa Azoty Blog
Grupa Azoty is currently taking steps to start up a coal gasification installation. The project is conducted in cooperation with companies as KGHM and Tauron. Following appropriate processing, those gases may be used as fuel for electricity production. Research done so far has confirmed the information that Polish bituminous coal can be gasified in an efficient manner.
In the end, Grupa Azoty could reduce its purchases of natural gas by about 15%, generating considerable savings. Additionally, this kind of coal use would raise domestic consumption of the resource by about 1 million tonnes per year, developing clean coal technologies, helping to reduce CO2 emissions and implement EU climate policy.
Conditions for the investment
Apart from focus on economic efficiency, law-making is of importance in the project, both with regard to resources policy, as well as lifting the excise tax on coal used in gasification process.
Other conditions of economic nature, which might speed up the go-ahead for the installation include locating the facility in a special economic zone and meeting the demand for emission quotas. By looking for alternative gas sources, Grupa Azoty has shown the way how to change the outlook on Polish coal. Once a challenge for the national economy, coal might become an opportunity for the Polish chemical and energy industry.