A model partnership between the private sector and the local government

A model partnership between the private sector and the local government

A model partnership between the private sector and the local government. One of the most technologically advanced eco power plants in Europe will be erected in Olsztyn.

A ceremony during which a coal stone was laid under the foundation of the Waste to Energy plant construction site was held in the capital city of Warmia and Mazury. The investment, which was carried out in the PPP format by the Dobra Energia dla Olsztyna company, is an exemplary model of cooperation between different entities, both public and private.

The investment includes constructing and utilising a power plant that will produce heat and electricity from alternative fuel – a calorific fraction of waste.  

The construction of one of the most modern power plants in Poland and Europe, which is to be erected in Olsztyn, will make it possible to replace the current, outdated and environmentally destructive coal-fuelled power plants with energy generated within the framework of a closed-cycle economy.

During the ceremony, Mayor Piotr Grzymowicz addressed the role of partnership in the erection of this installation, which he stressed is vital for the town residents. “The cooperation between entrepreneurs, institutions, local governments as well as all those who participate in the broadly understood investment process is exceptional. This is a huge investment, one of the largest public-private partnership in our country”.

Krzysztof Witkowski, the President of Dobra Energia dlaOlsztyna, spoke about the importance of close cooperation between the companies and institutions. “The core of the idea of creating an innovative and environmentally-friendly Installation is based, and I would like to emphasise this very strongly during today’s ceremony, on partnership. The investment would not have been possible if it were not for the cooperation under the public-private partnership with MrPresident and other city authorities and the MPEC (Municipal Heat Supply Company) in Olsztyn. It would also not have been possible if it were not for the openness of the local community to this initiative. This is very important because our partnership is envisaged for 25 years”.

Dobra Energia dla Olsztyna was chosen for this project by Meridiam Eastern Europe Investments SAS, a fund specialising in the development, financing and management of long-term public infrastructure projects, and Urbaser, an international entity providing services for local governments in the sector of waste management and processing.

– Our investment is aimed in particular at the residents of Olsztyn and the entire region of Warmia and Mazury. The new eco-power plant is being built to solve the problem of waste and out of concern for the environment and the health of the residents of this magnificent city. I believe that our long-term partnership of over 25 years, to which we have committed ourselves, will work as well as it has so far – said David Delgado Romero, partner and chief investment officer of Meridiam for Central and Eastern Europe, the asset management investment fund that made the project possible.

According to the investment objectives, the new installation will allow for recycling energy from more than 110,000 tonnesof alternative fuel per year. It will ensure the continuity of heat supply to the residents. In terms of producing good green energy, the project will benefit the city by reducing CO2 emissions associated with heat production by approximately 150,000 tonnes per year. The importance of the investment from an ecological perspective was highlighted by the Deputy Minister of Climate and Environment, Jacek Ozdoba, in a letter prepared specifically for this ceremony: “the laying of the coal stone for the investment is a milestone event on the road to the construction of the most modern plants in Poland. The Warmia and Mazury region is the cleanest area of our country, not accidentally counted among the Green Lungs of Poland. Waste management is an area of significant challenges in the field of environmental protection. In terms of the closed-circuit economy policy, waste is also a potential resource – wrote Minister Ozdoba.

This fully ecological installation, one of the most cutting-edge in Poland and Europe, has been supported by long-term funding from the Polish Development Fund (PFR) and the European Investment Bank (EIB), together with a group of Polish and international banks. As of recent, Bank OchronyŚrodowiska has also joined their ranks.

– We are glad that thanks to the co-financing from BOŚ Bank, a modern eco-power plant will be built in Olsztyn, guaranteeing the highest environmental protection standards. Thanks to this investment, residents will breathe cleaner air, and communal waste will be processed and used most efficiently. – said Robert Kasprzak, Vice-President of the Management Board of Bank Ochrony Środowiska. Since the beginning of its existence, i.e., for 30 years, our bank has specialised in supporting environmental protection. We know how important the fight for our climate is. Thanks to our support, many environmentally friendly investments are being carried out, which are necessary for the local communities. – Kasprzak reminded. 

The project is being implemented using an EU grant managed by the National Fund for Environmental Protection and Water Management, obtained under the Infrastructure and Environment Operational Programme. According to the plans, by mid-2023, the installation will supply ecological heat to approximately 35 per cent of the residents of the capital of the Warmia and Mazury region while at the same time tackling the problem of municipal waste management.

First “Green Loan” for an energy PPP in Poland

First “Green Loan” for an energy PPP in Poland

Meridiam, an infrastructure fund, has secured financing for a “Green Loan” for the construction of the Waste to Energy plant implemented out under a public-private partnership for the company Dobra Energia dla Olsztyna. The fully ecological plant was supported by long-term financing from the Polish Development Fund (PFR) and the European Investment Bank (EIB), together with a group of Polish and international banks. The PLN 490 million senior debt has been certified as a “Green Loan” under the LMA Green Loan Principles.

Meridiam, specialising in the development, financing and management of long-term projects in the public infrastructure sector, has fully secured the financing of the “Green Loan” for the construction and operation of the Waste to Energy plant, implemented out under the public-private partnership for the company Dobra Energia dla Olsztyna. The fully ecological plant, one of the most modern in Poland and Europe, was supported by long-term financing from the Polish Development Fund (PFR) and the European Investment Bank (EIB), together with a group of Polish and international banks. The senior debt of PLN 490 million was certified as a “Green Loan” according to the LMA Green Loan Principles.

The new investment in Olsztyn will make it possible to replace the current, outdated coal-fired installations with energy generated under a circular economy, which will supply both electricity and heat to the inhabitants of Olsztyn, thus reducing by up to half the amount of coal currently used to produce heat and at the same time significantly reducing emissions of harmful pollutants into the atmosphere, which is entirely in line with the climate policy of Poland and the entire European Union.

Involving such a. number of key financial institutions in the process of financing a pro-environmental project such as the Waste to Energy plant implemented by Dobra Energia dla Olsztyna is another milestone for Poland on the way to energy transformation and achieving climate neutrality. We are proud to be involved in such an important project for Warmia and Mazury, one of the most beautiful and cleanest areas in Poland. ” – commented David Delgado Romero, Partner and Investment Director for Central and Eastern Europe at Meridiam, the asset management investment fund that made the project possible.

PFR is involved in financing the project, providing mezzanine financing of PLN 48 million to Dobra Energia dla Olsztyna. The European Investment Bank, meanwhile, will provide PLN 200 million of long-term senior debt for the project. The long-term financing, with a 20-year maturity, will be supplemented by commercial lenders – mBank, ERSTE Bank and Kommunal Kredit. Pekao Bank finances the VAT loan. Further banks may complete this pool in the coming weeks.

Since the start of construction in mid-2020, the project has been implemented using an EU grant managed by the National Environmental Protection Fund. The EU subsidy under the Infrastructure and Environment Operational Programme 2014-2020, Priority Axis II “Environmental protection, including adaptation to climate change”, Measure 2.2 Municipal waste management amounts to approximately PLN 172 million.

Meridiam – holding 95 per cent of shares in Dobra Energia dla Olsztyna and the Spanish company Urbaser – an entity providing services to local governments in the waste management and processing sector – will provide equity to compelment the financing of the Olsztyn investment. The total financing plan for the project amounts to around PLN 957 million. The new financing plan has been approved by the public partner, Miejskie Przedsiębiorstwo Energetyki Cieplnej (MPEC) in Olsztyn. The senior debt has been rated by Vigeo Eiris Group (Moody’s) as compliant with the Loan Market Association’s Green Loan Principles.

Our investment is a project of strategic importance for the capital of Warmia and Mazury. According to the investment assumptions, the new installation will make it possible to recover energy from more than 100,000 tonnes of alternative fuel (RDF) per year and ensure continuity of heat supply to residents. In terms of the production of green energy, the project will benefit the city by reducing CO2 emissions associated with the production of heat by approximately 150 thousand tonnes per year. – Krzysztof Witkowski, President of Dobra Energia dla Olsztyna, points out and adds: “It is worth emphasising that the fuel which will be used to power the eco-power plant is produced from waste generated by the residents themselves, which is in line with a closed-circuit economy. ”

The launch of the installation for thermal processing of waste from the Warmińsko-Mazurskie Voivodeship with the recovery of electricity and heat in a Waste to Energy plant is scheduled for mid-2023. The cogeneration plant, which produces combined heat and power, will cover around 30% of the city’s heat demand.

Media contact:

  • Adam Kukielewski, Point of View || a.kukielewski@pov.pl, 600 990 902

 

A spectacular operation to place one of the two gas and oil boilers on especially built foundations; each weighing over 90 tonnes

A spectacular operation to place one of the two gas and oil boilers on especially built foundations; each weighing over 90 tonnes

On March 31, 2021, two CERNEY S.A. boilers of the peak load boiler house arrived at the construction site. This is another milestone on the way to Olsztyn’s energy transformation. The next important stage of the investments will be completed once the boilers are installed and started.

 Dobra Energia Dla Olsztyna is planning to run the first tests of the peak load boiler house in autumn, in order to provide Olsztyn residents with good, ecological energy next winter already.

Doosan obtains building permit to start the works on WtE green plant in Olsztyn

Doosan obtains building permit to start the works on WtE green plant in Olsztyn

Dobra Energia dla Olsztyna has handed over the permit to Doosan to start construction works of the most modern and fully ecological WtE plant in Olsztyn – the heart of Warmia and Mazury. The installation is planned to be launched by mid-2023. Total construction cost is estimated at approximately PLN 720 million, of which the key element is the EU subsidy.

 Main EPC contractor selected by Dobra Energia dla Olsztyna – a consortium of two companies: Doosan Heavy Industries & Construction and Doosan Lentjes – will be responsible for the construction and will provide fully ecological solutions such as an innovative boiler or steam turbine. The works, that have already started, are conducted by leading Austrian company – Strabag.

 We are proud to participate in such an important project for the region. Thanks to it, Warmia and Mazury, one of the most beautiful and cleanest areas in Poland, will gain a fully ecological investment allowing at the same time to generate cleaner energy from the rest of the municipal waste”. – commented David Delgado Romero, partner and investment director of Meridiam for Central and Eastern Europe, the investment fund and asset manager, that made the project possible.

 The new investment in the capital of Warmia and Mazury will include the construction and operation of a plant producing energy from municipal waste. The installation will meet the highest environmental standards. It is even said to exceed the European standards required by the new BAT Conclusions. The plant itself is expected to be one of the most modern and ecological installations, not only in Poland, but also in Europe. The project implemented in the formula of Public-Private Partnership will be financed with European Union funds under the Operational Program Infrastructure and Environment 2014 – 2020, Priority Axis II “Environmental protection, including adaptation to climate change”, Measure 2.2 Municipal waste management. Construction works are accelerating – by the end of the year over 220 people will be working on the site.  It is estimated that the project will create almost 500 new jobs in total.

 ,,Thanks to the implementation of the investment, our city will gain a new, ecological source of heat, which will allow us to meet the needs of our customers for the next few decades. by the end of 2021, we will have ended the partnership with our current Private Partner – Michelin Polska, who will no longer provide heat for local needs. However, we will begin long-term cooperation with our new Partner – the Company Dobra Energia dla Olsztyna” – says Konrad Nowak, President of the Management Board of MPEC.

 The new investment in Olsztyn will make it possible to replace current, worn-out coal installations with renewable sources of energy, which will supply Olsztyn inhabitants with both power and heat. The new plant will allow reducing the amount of coal currently used for the production of heat energy by as much as half, thus significantly reducing air pollution. The new installation will, therefore, significantly improve air quality in the entire region.

 ,, Good  air quality is essential for Warmia and Mazury.  Ecological heat and power plant powered by alternative fuel is a modern solution that not only meets the latest European Union guidelines, but also solves the problem of storing the whole region’s waste. Furthermore, it will allow eliminating continually rising costs of transporting non-recyclable waste beyond the borders of the province” – indicates Krzysztof Witkowski, President of Dobra Energia dla Olsztyna, who will be responsible for the management and operation of the new fully ecological heat and power plant.

 Ecological management of the combustible fraction from municipal waste also makes direct contribution to the European policy aimed at reducing the share of landfills as waste management tools. It will also make it possible to increase energy recovery from waste and, consequently, reduce the emission of landfill gases to the atmosphere and reduce CO2 emissions by almost 100 000 tones per year. This project will constitute significant participation of Poland in the fight against climate change and the circular economy (UN Sustainable Development Goals 8, 12 and 13). It is also an essential element in the implementation of sustainable urban development policy in Poland.