Mister Chairman, why is Bielsko-Biala so important for the Southern Poland Power Company Plc.? Of course, I think of the new power block EC-1 which is currently widely discussed about. There is a block in Czechowice-Dziedzice which can be easily modernized or extended. Why was the new investment located in the city center chosen then?

EC-1 is an old type heat and power plant and unfortunately it entered the derogation phase. Blocks 1 and 2 were commissioned in 1960, and block no 4 in 1969. Nowadays the plant meets ecologic norm resulting from the natural derogation and after 2013 the unit has to be shut down. Since January 1, 2008 we have had only 20 thousand working hours left. Today, we are saving up these hours as much as possible. In the summer 2008 EC-1 was shut down temporarily in order to maximize the exploitation period left. One additional reason was the fact that in this very condition EC-1 generates losses. Bielsko-Biala market is heat powered from EC-1 and EC-2. if our company had not decided on a new investment in EC-1, there would undoubtedly arise competition.

How thorough will the EC-1 modernisation be?

There will not be much left from the old plant. Maybe some squares, parts of the railway system and carburizing unit part. In fact, the new heat and power plant will be erected fully conjugated without a cooling tower. The new EC-1 will operate only in the winter season and during summer Bielsko-Biala will be powered only by EC-2.

So how will the plant staff work?

Just like in the majority of Polish heat and power plants. After the heating season there will be time for overviews, inspections, maintenance and repair works, in the summer the staff will go on leave.

Which stage of the investment can we be talking about at this time?

The Board and the Supervisory Board have already made all the key decisions. The basic design contractor has also been chosen. Design works are underway as well as the geological survey of the investment site. The Southern Poland Power Company has already spent several million zlotys on the preparatory works. Next year the expenditure will amount to circa PLN20 million. We wish to start the new EC-1 up in the heating season 2012-2013 so the new block need to be ready as soon as in September 2012. so we do not have much time left.

Is the company planning this investment based on some specific contracts signed with Therma- Bielsko-Biala company operating as the heat distributor?

Of course, we have signed a contract with Therma which will terminate in 2027 – so for the entire period of the investment payoff. I wish to emphasise that the contract is highly favourable for the both parties. Soon we will sign energy sales contracts for the energy produced in conjugation by the new block.

What are the special features of Bielsko-Biala investment?

The application of a very interesting, from the power industry point of view, idea – heat accumulator – an enormous hot water container which will play a double role is the most characteristic feature. Firstly, the heat and power plant will be able to maximize the production during peak hours when the energy is the most expensive. At times when the electricity is cheaper, and the heating system requires heating we will empty the heat accumulator. In simpler terms: at 3 o’clock when it is the coolest the heat will go from the accumulator with the minimum energy production simultaneously charging the heat accumulator. Secondly, as the heat and power plant will not be equipped with the cooling station the whole of the energy produced will be sold. The new block is characterized by 87% effectiveness! What is more, the price of 1GJ produced from coal in the long-term time projection will be significantly lower than produced from gas or other heat carrying agent.

How much will the EC-1 block cost?

Circa PLN 500 million. 40% of which will be the company own resources and 60% the bank credits. So, similarly to new Lagisza. Currently, there are talks carried out with the banks.

Zbigniew Adamczyk – Managing Director of Heat and Power Plant in Bielsko-Biala

The talks with the Bielsko-Biala City Council and the mayor Jacek Krywult are over. Did the city canvass this investment much?

The city had to solve the problem of securing heat for its citizens for the future years. We discussed this issue for at least two years. Therefore we possessed extensive knowledge what kind of unit is needed, where it should be located and which technology to apply. Bielsko-Biala is powered by two different sources but with such a complex city planning this status quo needs to remain. EC-2 alone will not be sufficient. The city authorities want the issue of heat engineering to remain in the hand of the Southern Poland Power Company – a company which is proven, reliable and trustworthy. Therefore there are appropriate acts passed by both Boards – the City and the Southern Poland Power Company and the act passed by the City Council concerning the further cooperation. Bielsko-Biala needs a reliable heat source which is about to happen. A fully modern unit will, for example, emit 30% less carbon dioxide compared with currently exploited units which, in the course of few years, will be shut down.

So what is needed at this point is money?

I think so, as the appropriate procedures connected with the investment preparation are already underway. Power industry, especially the modern one, making use of the cutting-edge technologies, is a sound business for the banks. I do think that financing the investment should not pose any problems. What is of utter importance for the city inhabitants – the heat price which has been stable for the last six years should remain at the level acceptable for the end users.

Jan Blachura – Technical Vice Director of Heat and Power Plant in Bielsko-Biala

What exactly will be erected in Bielsko-Biala?

It will be a fully modern 50 power MW and circa 110 heat MW block equipped with the fluidized bed boiler, a back pressure turbine and a heat accumulator. This will be the basic unit, yet in order to protect ourselves from the potential failures there will be two additional oil-gas boilers 38MW each. They will support basic machinery when the temperature drops to -20 centigrade.

Is the heat accumulator a good, proven solution?

Heat accumulator is a novelty on the Polish market but at the same time it has been used in Scandinavia for many years. Recently I had a chance to participate in the conference dedicated to the heat accumulators which was held in Gdynia. Part of the conference was the trip to Sweden to the town called Växjö where 40-thousand-cubic-meter heat accumulator operates. There are about 100 heat accumulators successfully working in Scandinavia. In majority they are pressureless, cylindrical, appropriately insulated containers. Quite recently there has been a heat accumulator built in Warsaw heat and power plant in Siekierki which belongs to Vattenfall. This accumulator is 40 meters high and is 25 meters in diameter.

Will the new block provide hot water for the citizens after the heating season?

There is no such need. We have checked this in 2008 and we know that EC-2 is perfectly sufficient as we built a small pumping station for those parts of the city which are located at the bigger altitude.

What is the current status of particular projects and tenders related to them?

In accordance with the Board’s decision there is a team responsible for the power restoration in Heat and Power Plant in Bielsko-Biala led by me. What is more, there are task teams: restoration project financing team headed by Agnieszka Serek; energy sale and procurement team led by Dariusz Niemiec; power take off team led by Piotr Więcek; fuel delivery provision team headed by Stanislaw Urbanski; and heat reception and long-term heat reception agreement led by Zbigniew Urbanski. At present there are several tenders based on the act on public procurement. The preliminary schedule for the investment realization is ready stating the time framework for the design, construction, delivery and machine assembly dates.

Which works have already been concluded?

We have the basic project of the fundamental part including the block and peak load boilers as well as the heat accumulator. The following machinery and auxiliary installation projects are being prepared: carbonizing system, water management, deashing. The construction design is also underway as it will be the basis for the construction permit. The city has already provided us with the building conditions. We also have the report concerning the influence on the environment. To cut the long story short, the investment is going faster and faster.

Bielsko-Biala will soon get a modern heat unit which is fully ecologic. Hitherto EC-1 block were not equipped with SO_x and NO_x emission reduction devices. The new block will be efficient, economic and what is of utmost importance – environmentally friendly.

Andrzej Cygielski