Polish state-owned energy company ORLEN has secured over 1.7 billion zloty ($458.3 million) in EU post-pandemic recovery funds to bolster its hydrogen energy projects. This funding, announced on June 16, will drive the production of hydrogen using renewable energy and develop supporting infrastructure across central Europe. ORLEN’s CEO, Ireneusz Fąfara, emphasized that this investment will accelerate progress in the hydrogen sector, enabling the company to expand and scale up production infrastructure more efficiently. This move is part of ORLEN’s strategic shift away from fossil fuels, with a target to achieve a production capacity equivalent to 900 MW of hydrogen fuel by 2035.
The grants are part of Poland’s National Recovery and Resilience Plan, which allocates funds to help member states recover economically from the Covid-19 pandemic. The funding will primarily support two key projects: Green H2 and Hydrogen Eagle. Green H2 involves building a 100-MW electrolyzer plant in Gdańsk, powered by renewable energy, to produce hydrogen for refining operations. ORLEN is collaborating with Norwegian company Hystar to develop high-efficiency electrolyzers, aiming to produce 1.5 GW of electrolyzers annually by 2027. This partnership not only provides ORLEN with the necessary equipment but also access to technological know-how and opportunities for further development.
Hydrogen Eagle, launched in 2022, plans to establish nine hydrogen hubs across Poland, the Czech Republic, and Slovakia. These hubs will utilize renewable energy sources, including solar and wind power, and some will also utilize municipal waste to produce hydrogen fuel. ORLEN is also expanding its network of hydrogen refueling stations, with plans to have 111 operational stations by 2030, half of which will be in Poland. The company has already invested in building facilities for the production and distribution of hydrogen for the transportation sector, with plans to invest at least €150 million in the coming years.
This significant investment in hydrogen infrastructure could reshape the energy landscape in central Europe. As ORLEN and other companies like PGE Polska Grupa Energetyczna and Polskie Sieci Elektroenergetyczne receive substantial funding for clean energy projects, Poland is positioning itself as a leader in the region’s energy transition. The EU’s requirement for member states to allocate at least 37% of recovery funds to climate-related projects is driving this shift, with Poland having already signed contracts worth nearly 60 billion zloty for various renewable energy and infrastructure projects.
The development of hydrogen infrastructure could also spur innovation and collaboration within the sector. ORLEN’s partnership with Hystar and its plans to build hydrogen refueling stations highlight the potential for technological advancements and increased adoption of hydrogen fuel. As more companies and countries invest in hydrogen, the technology could become more accessible and affordable, further accelerating the transition to cleaner energy sources.
However, challenges remain. The success of these projects will depend on the effective integration of renewable energy sources, the development of efficient hydrogen production and storage technologies, and the establishment of a robust infrastructure for distribution and refueling. Additionally, policy support and regulatory frameworks will be crucial in fostering a favorable environment for hydrogen adoption.
As ORLEN and other companies in the region move forward with their hydrogen projects, the energy sector will be watching closely. The outcomes of these investments could provide valuable insights into the future of hydrogen as a clean energy source and its potential to decarbonize various industries. The developments in Poland and the broader EU could set a precedent for other countries looking to transition to cleaner energy sources and reduce their carbon footprints.