Green industrial districts are emerging in Europe. In Poland, too, they should
The transformation of the energy industry has set in motion the process of creating new industrial centers. So it’s no longer just the market, transportation accessibility and access to skilled labor that matter – what matters above all is access to renewable energy sources free of CO₂ and transmission fees, which will ensure energy prices that can compete with other producers.
The direction of building industry in the immediate vicinity of the sea and RES has already begun in the world
Sweden has adopted a program to decarbonize industrial production and is becoming one of the leaders in greening steel, aluminum, or battery chemistry production. At the plant in Boden, northern Sweden, the H2 Green Steel start-up will produce from 2025. green steel, reducing CO₂ emissions by 95% compared to traditional production. Production and achievement of the targeted rates will be possible thanks to the Norrbotten region – rich in non-fossil energy sources, high-quality iron ore and the large port of Luleå.
The company aims to build the world’s first green steel plant. By 2030. H2 Green Steel will produce 5 million tons of green steel. Leading European companies – even before the plant is commissioned (including BMW and Mercedes) have already signed supply contracts with Boden.
In recent days, H2 Green Steel closed another financing round from private funds in the amount of €1.5 billion. Another interesting project has been announced by the Norwegian company Blastr Green Steel, which will build a new green steel plant in the town of Inkoo in southern Finland using Scandinavian renewable energy resources. Starting in 2026. The company plans to produce 2.5 million tons of steel per year – top-quality products requiring sophisticated digital manufacturing processes for segments such as automotive and construction with ambitious CO₂ reduction plans.
Blastr Green Steel is backed by the owners of Vanir Green Industries, a Nordic investment company that develops the green businesses needed to accelerate the energy transition.
Green and competitive
Industrial investors in Poland are also keeping an eye on the latest megatrends. New capacity in steel, aluminum, copper, or batteries are capital-intensive investments that, in light of today’s EU regulations, require deeper insight into the cost structure of energy and the level of “greening” of production. The price and color of energy today determine the effective sale of products in Western European markets.
The development of RES in Poland bypassing the industrial consumer is devoid of logical justification. If we want to be competitive, the price must fall below 450 PLN /MWh by 2026, and this is only possible if we eliminate the CO₂ fee. What can be assumed today for 2024 or 2025? A question with a large margin of error. And this margin of error determines the choice of a new location.
In futures contracts, energy is priced using 630 PLN (2024) and as much as 695 PLN (2025). These are prices more than 30% higher than the market environment and market expectations.
The construction of wind power plants in the Baltic Sea and planned nuclear units in northern Poland, and therefore access to cheap green energy, prompts consideration of locating new green industrial zones in northern Poland.
Reducing fees is not enough
And here comes the project to create special energy zones to be located in northern Poland. An investor who builds his industrial plant in such a zone will be able to count on a reduction in the quality charge and the variable network charge, so his electricity bills will be lower than outside the energy zone. In some locations, investors will also be able to obtain a connection to the Gaz-System gas network.
The preliminary locations of the special zones are around Slupsk, Suwalki, Ostaszewo (two zones near Toruń), Szubin (near Bydgoszcz) and Olsztyn. The zones will be designed for large electricity consumers with annual consumption of more than 100 GWh and those planning to build energy storage facilities. The location of large electricity consumers near generation sites, combined with the construction of energy storage facilities, will improve the efficiency of transmission infrastructure use and reduce the need for grid investment.
The industry is calling for the creation of such zones and special treatment for them. Reducing the transmission fee, or power fee, however, is far from enough. The new system must be based on access to zero-carbon energy, with no CO₂ fees. The overarching goal must be to go below 450 PLN/MWh. Only then will green industrial production enter the path of dynamic development, providing the opportunity to build production centers wherever access to RES power generation is provided, especially from wind and hydrogen, and in the future from nuclear power plants.
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Mikolaj Budzanowski
Boryszew Green Energy & Gas Member of the Management Board of Boryszew Group S.A.