There will be less and less coal in the energy mix; To manage this better, consolidation of coal companies that are beneficiaries of public aid is needed, said Łukasz Deja, president of Polska Grupa Górnicza, on Monday in Katowice.
These are companies covered by the so-called New Support System: Polska Grupa Górnicza, Południowy Koncern Węglowy and Węglokoks Kraj. Under the Act on the Operation of Hard Coal Mining, these companies receive state subsidies to reduce mining capacity.
The head of PGG participated in the conference “Sovereignty begins in Silesia”, co-organized by, among others, by the local government of the Silesian Voivodeship and the local Business – Science – Local Government association “Pro Silesia”. As he declared, PGG understands this sovereignty as responsibility for people, property and the transformation of the region.
When asked how long coal will be needed, Deja pointed out that it determines the country's energy security. He emphasized that decarbonization is taking place, but the question is about the pace of moving away from coal.
– Just a few years ago, especially after the outbreak of the war in Ukraine, everyone said that coal would be a transition fuel and that coal would be needed for a long time. Today we have gas in the energy mix. We know there will be less coal. And here the question is about strategy – and it is not a question of whether, but when the consolidation of public aid beneficiaries will take place – Deja pointed out.
– That's the direction. However, we should know this future, because then we will manage it better – he added.
He emphasized that Polska Grupa Górnicza is a stabilizer of coal prices in Poland, just like Bogdanka or Południowy Koncern Węglowy. He estimated that as long as these companies continue to mine, prices will be stable and predictable, and the energy sector will have fuel “on the shelf.”
– However, when we are gone, this product will no longer be on the shelf and it will have a completely different price – said Deja. In his opinion, coal should be in the mix until there are new, stable sources.
He referred to the discussion about nuclear energy, which – according to global and European experience – often experiences various, sometimes significant, delays. – I encourage there to be a model like in France, in which we will say goodbye to mining once the nuclear energy sector is launched, well-functioning and proven – added the president of PGG.
Three coal companies covered by the New Support System concern the so-called social agreement for the hard coal mining industry of May 2021, which regulates, among others, rules and pace of phasing out of thermal coal mines in Poland. The mine closure schedule included in the agreement reaches 2049.
Earlier, during the conference “Sovereignty begins in Silesia”, an expert of the “Pro Silesia” association, Piotr Wawrzynowicz from the Kearney consulting company, proposed the creation of a Polish “chaebol” – a strong and profitable steel concern that would be an impulse for reindustrialization.
Wawrzynowicz pointed out that the starting point of this proposal is to show the steel market that will be needed in Poland if all large infrastructure investments announced in Poland by 2040 are implemented. This means demand for steel products of up to 24 million tons with expenses of PLN 60-120 billion (assuming 60% local content).
Expert Kearney said that according to data for 2024, production capacity in Poland is approximately 67% used, with the increase in demand being covered by growing imports. Domestic steel production may reach approximately 10.6 million tons.
Wawrzynowicz pointed out that the Polish response to any external threats related to sovereignty could be the creation of a Polish concern, the so-called chaebol, based on a coal-to-steel value chain.
According to his presentation, such a reindustrialization flywheel could include several companies related to the industry – from JSW and JSW Koks, through other coking plants, the Polish assets of ArcelorMittal, to companies from the steel processing industry, such as Węglokoks, Alchemia, Cognor, Ferrum or the Polish assets of CMC.
– We are not talking about combining all these companies into one holding company, but rather that a huge number of off-take agreements (purchase agreements – PAP) could ensure a value chain that would work completely differently. Because, for example, JSW would be a completely new company if it operated as part of the value chain, and not in isolation, on a market where it is very difficult to compete – said expert Kearney. (PAP)
mtb/mmu/
