PGE Polska Grupa Energetyczna and Gas Transmission Operator GAZ-SYSTEM selected the preparation of the “Feasibility study of the construction of a Power-to-Gas installation” from among the list of basic development projects of a common area of interest. The study will be prepared in 2015.

In accordance with the initial assumptions, the intention of the Power-to-Gas installation will be to store surplus electricity produced by wind farms by converting the excess electricity into the fuel of the future, namely hydrogen. This will be made possible through the process of electrolysis, while the hydrogen obtained in this way can be pumped into the gas network and will be further used as a zero-emission energy medium. The storage of surplus electricity is one of the main challenges currently faced by the electricity sector. Other than the ability to assure uninterrupted supplies of natural gas to consumers, the national network of gas transmission pipelines also has the capability to store energy in the form of other gaseous fuels, including hydrogen.

“The PGE Group is the leader on the electricity market in Poland and sets itself the objective of searching for innovative projects which increase the value of the business. The establishment of the cooperation with GAZ-SYSTEM will enable the electricity and gas infrastructure to be operationally connected to the benefit of both partners and will improve the level of the country’s energy security,” says Marek Woszczyk, President of the Management Board of PGE Polska Grupa Energetyczna. “The successful construction of the Power-to-Gas installation could lead to the production of low-emission fuels of the future and therefore perfectly suits the PGE Group, which is rapidly diversifying its energy mix. The Power-to-Gas installation is also attractive to us, because it can enable the utilization of surplus electricity from the PGE Group’s wind park, which will grow by more than 200 MW of new capacity by the end of this year and will amount to more than 500 MW."

"The construction of a Power-to-Gas installation is one of the elements of creating an intelligent gas network. GAZ-SYSTEM S.A.’s cooperation with the electricity sector will enable the development of our company in completely new areas. The implementation of this project will make it possible to offer new services, while improving the efficiency of the infrastructure used. As a leader in initiating new solutions and actively shaping the gas sector in Poland, we want to achieve synergy by working with other energy companies in order to strengthen the whole of the energy sector.” says Jan Chadam, President of the Management Board of GAZ-SYSTEM S.A.

In accordance with the provisions of the letter of intent, the companies will hold a tender to contract for the preparation of the “Feasibility study of the construction of a Power-to-Gas installation.” At the same time, a Working Party consisting of representatives of PGE Polska Grupa Energetyczna and Gas Transmission Operator GAZ-SYSTEM S.A. will be appointed, which will be responsible for organizing and coordinating the work related to the preparation of the Feasibility Study. After it is complete, a decision will be made on the next steps regarding possible cooperation in the implementation of selected projects.