Orlen commissions renewable diesel production facility in Płock, Poland

Photo: Orlen

The Polish multinational energy company Orlen announced May 27 that it has significantly expanded its biofuel production capacity with the launch of a state-of-the-art hydrotreated vegetable oil (HVO) plant in Płock, Poland, with a rated annual output of around 300,000 metric tons.

Orlen first announced the project in 2021.

The investment strengthens a domestic value chain based on locally sourced feedstocks while supporting the decarbonization of transport.

Valued at more than 800 million Polish zlotys (USD$219.7 million), the facility will also reduce the group’s reliance on third-party suppliers of biofuel-blending components.

“The HVO plant will materially bolster Poland’s fuel security,” said Ireneusz Fąfara, the CEO and president of Orlen’s management board. “Its launch will give Orlen greater control over a strategically important segment of the biofuels market. We’re increasing in-house production of advanced biofuels, improving cost efficiency and reducing our exposure to external market volatility. This investment is further proof that professional management can generate tangible benefits for Orlen, its shareholders and suppliers. We have corrected past mistakes so that this facility can help build a domestic value chain—from feedstocks to finished fuels—while supporting the Polish economy.”

Output from the HVO plant will initially be directed to the domestic market.

The facility can process rapeseed oil, used cooking oil (UCO) and blended feedstocks to produce high-quality renewable components for road-transport fuels.

HVO production can reduce greenhouse-gas emissions by 65 percent or more compared with conventional fuels.

The commissioning of the plant will increase the Orlen Group’s total biofuel production capacity to approximately 700,000 tons annually, with plans to expand the output to 1.1 million tons by 2030.

The investment supports compliance with Poland’s national biofuel quota set at 10 percent for 2026, while reducing the need to import biofuel components under the EU’s RED III regulatory framework.

The project forms part of Orlen’s strategy to maximize the utilization of its existing refining assets through the processing of biobased feedstocks.

The group has also upgraded two diesel hydrodesulfurization (HDS) units in Płock for the coprocessing of vegetable oils (including rapeseed oil and UCO), thus increasing annual processing capacity by more than 100,000 tons.

Orlen is implementing Poland’s largest biofuels-investment program to secure access to key biofuel-blending components.

In parallel, the group is developing its “Catch Crops for Biofuels” program, based on a local-content model and the creation of a domestic value chain.

The initiative brings together farmers, industrial partners and technology providers to support the development of domestic feedstocks, particularly for second-generation biofuels that are ultimately intended to supply the HVO plant.

This is expected to strengthen supply security, support Polish agriculture and reduce the carbon footprint of the overall production process.

Orlen already spends approximately 5 billion Polish zlotys (USD$1.37 billion) annually on the purchase of feedstocks from Polish farmers for domestic biofuel production.