Environmental responsibility

The ORLEN Group pays particular attention to the protection of natural resources across all areas of its operations. The same is true for water resources, which are always used in a prudent manner. The Company has in place a ‘System for recycling wastewater as industrial water’, which consists in looping the water and wastewater systems, converting wastewater into industrial water (tertiary treatment − coagulation and flocculation accelerators, and quaternary treatment − algae and reed ponds), and using an inhibitor node, in which treated wastewater is inhibited and sanitised by chlorine water. Treated wastewater is used as utility water for washing, cleaning and fire-fighting applications. To make the water fit for feeding into utility and fire-fighting systems, the plants are controlled for cleanliness during leakproof testing. Water carried to the utility and fire-fighting systems is sourced from blowdown of circuits. Condensate from steam circuits is treated and used as high-quality water.

Due to the use of substantial quantities of water, we recycle as much of it as possible for further use.

Water management across the ORLEN Group includes a number of elements.

Surface waters were the main water source for Group companies. They are abstracted by the ORLEN Group’s largest companies, namely ANWIL, IKS Solino, PKN ORLEN, ORLEN Południe, Česká rafinérská, Paramo, ORLEN Lietuva, Unipetrol RPA, and Spolana, and then distributed through water mains to their own production facilities and to other companies’ installations.

The amount of water abstracted from the environment by ORLEN Group companies depends primarily on their production demand; in 2015, it exceeded 86m cubic meters.

The amount and quality of abstracted water is closely monitored.

The following table presents the amount and type of water abstracted by the ORLEN Group’s largest production unit – the Płock Production Plant.

Increased year-on-year amount of water drawn from the Vistula River (up 9.75%) was due to higher crude processing volumes (up 9.7%) at the Płock Production Plant. The exceptionally long and hot summer of 2015 accelerated evaporation of water from the cooling systems. As large amounts of water evaporated, salinity levels in the system increased accordingly; as a result, bleedback of salinated water to the utility and fire-fighting systems increased by 48.01% on 2014. Higher bleedback of water from cooling systems to utility and fire-fighting systems reduced the demand for recirculated wastewater by 25.81%, which, in combination with higher crude processing volumes, increased the amount of wastewater discharged to the Vistula River by 2.71% year on year. Due to higher discharge of wastewater to the Vistula River, the chemical oxygen demand (COD) load was up 2.55% on 2014, and phenol load increased by 3.7%.

The water consumed by the Włocławek PTA Plant for its operational purposes is delivered by ANWIL’s external supplier.

Higher consumption of industrial water was caused by more intensive repair works (including hydrodynamic cleaning of installations, pressure tests). Higher consumption of decarbonised water was caused by the strong evaporation and blowdown of process water due to high ambient temperatures.

Lower consumption of sanitary and drinking water was due to a change in work organisation, following transition from a five-shift to four-shift system.

Air emissions of pollutants are monitored through periodic or continuous measurements, so that actual emissions can be compared against emission limits defined in the relevant integrated (IPPC) permits on an ongoing basis.

Management approach to the Emissions aspect includes several components.

Substances accounting for the largest percentage of total air emissions from the ORLEN Group’s installations include: sulfur dioxides, nitrogen oxides, carbon monoxides and dioxides, as well as particulate matter.They are generated mostly from the combustion of fuels to produce electricity and heat, as well as in the refining and chemical processes.

Overall emissions of these substances by the ORLEN Group in 2015 fell compared with 2014, with the most significant reduction achieved in carbon oxides.

The reduction in emissions was achieved on reduced consumption of oil in favour of gas fuel, installation of SCR (Selective Catalytic Reduction) and FGD (Flue Gas Desulfurisation) systems, enhanced control of combustion processes and energy efficiency improvements.

For example, in 2015 periodic measurements of air emissions from the petrochemical, refining and CHP units in Płock and the PTA Plant in Włocławek revealed no exceedance of the permitted emission levels from integrated permits. Similarly, data from the continuous monitoring system installed at the emission sources of the on-site CHP plant were in line with the Minister of Environment’s Regulation on Emission Standards for Installations.

In 2015, despite the larger volumes of crude processed and inclusion of the ORLEN OIL and ORLEN Asfalt installations in the PKN ORLEN refinery, there was an over 2% year-on-year decrease in total emissions (excluding carbon dioxide).

2015 was the fourth year of operation of the terephthalic acid production plant (PTA Plant) in Włocławek. In 2015, there was an overall decrease in air emissions compared with 2014.

Besides PKN ORLEN, ambient air quality is monitored by three companies: ANWIL, ORLEN Lietuva and Česká rafinérská.

At ANWIL, off-site periodic measurements are taken at two locations to measure the concentrations of vinyl chloride (C₂H₃Cl) and 1,2-dichloroethane (C₂H₄Cl₂), while on-site measurements additionally cover ammonia (NH₃) and nitrogen dioxide (NO₂).

ORLEN Lietuva monitors ambient concentrations at four off-site locations, within the so-called sanitary zones. Measurements are taken once a day to monitor the levels of VOCs, benzene (C₆H₆), toluene (C₇H₈), ethylbenzene (C₈H₁₀), carbon monoxide (CO), hydrogen sulfide (H₂S) and nitrogen dioxide (NO₂).

Monitoring at Česká rafinérská covers ambient concentrations of sulfur dioxide (SO₂), nitrogen oxides (NO₂) and benzene (C₆H₆). Ambient concentrations are monitored on a continuous basis by an automatic station.

A comparison of monitoring data with permissible levels indicates compliance with legal requirements.

In 2015, air quality monitoring in the vicinity of the Płock Production Plant covered the same substances as in the previous year: O₃, CO, SO₂, NO₂ and BTX, and was carried out from an automatic monitoring station located outside the plant’s premises − at Junior High School No. 5.

Analysis of the 2015 measurement readings indicates that the Company complied with the environmental standards for all measured pollutants, as laid down in the Minister of Environment’s Regulation of August 24th 2012. There were no instances of the maximum annual average concentrations being exceeded for any substance.

At the Junior High School No. 5 station, the average annual concentrations in 2015 were 10% lower in the case of NO₂ and 5% higher in the case of SO₂ relative to the year before. The higher SO₂ concentrations may be attributable to temporary removal from service (for about three months) of a large stack at the Claus sulfur recovery unit, which was replaced during that time by a much lower emergency stack, leading to increased pollution spreading.

At ANWIL, off-site periodic measurements are taken at two locations to measure the concentrations of vinyl chloride (C₂H₃Cl) and 1,2-dichloroethane (C₂H₄Cl₂), while on-site measurements additionally cover ammonia (NH₃) and nitrogen dioxide (NO₂). ORLEN Lietuva monitors ambient concentrations at four off-site locations, within the so-called sanitary zones. Measurements are taken once a day to monitor the levels of VOCs, benzene (C₆H₆), toluene (C₇H₈), ethylbenzene (C₈H₁₀), carbon monoxide (CO), hydrogen sulfide (H₂S) and nitrogen dioxide (NO₂).

Monitoring at Česká rafinérská covers ambient concentrations of sulfur dioxide (SO₂), nitrogen oxides (NO₂) and benzene (C₆H₆). Ambient concentrations are monitored on a continuous basis from an automatic station.

A comparison of monitoring data with permissible levels indicates compliance with legal requirements.

In 2015, greenhouse gas emissions were balanced on a monthly basis for PKN ORLEN’s refinery, CHP plant, Olefins II, Ethylene Oxide and Glycol, and PTA units, all of which participate in the Emissions Trading Scheme (ETS). The extent to which the allocated CO₂ emission allowances were utilised was monitored on an ongoing basis for each unit. In addition, forecasts were made as to the level of CO₂ emission allowances vs annual production targets.

In line with the Act on Trading in Greenhouse Gas Emission Allowances, by February 28th 2015 free emission allowances, in amounts calculated by adjusting the initial allocation quotas with a cross-sectoral correction factor, should have been transferred to companies in Europe. The allocated allowances were transferred in March 2015.

Following inclusion into PKN ORLEN of an organised part of the businesses of ORLEN OIL and ORLEN Asfalt (in January 2015), in February 2016 PKN ORLEN was required to verify the annual CO₂ emission reports with regard to those installations for one day in 2015. Since January 2nd 2015, emissions from the ORLEN OIL and ORLEN Asfalt units have been monitored together with emissions from units of the PKN ORLEN refinery.

Pursuant to Directive 2003/87/EC of the European Parliament and of the Council, in order to obtain transitional free allocation of allowances to modernise the power sector, PKN ORLEN applied for additional allocation of free CO₂ emission allowances for the power sector under a derogation request included in the National Investment Plan. The investment projects undertaken by PKN ORLEN, i.e. construction of the K8 boiler and TG-7 turbine generator at the CHP plant, as well as construction of the CCGT plant in Włocławek, are covered by the National Investment Plan, which is why PKN ORLEN is eligible to apply for additional allowances for the power sector in 2013−2020.

Key elements of managing the Waste aspect:

Overall, the ORLEN Group generated more than 160, 000 tonnes of waste in 2015.

Non-hazardous waste generated by the ORLEN Group includes mainly bottom ash, slag, boiler dust, waste from water treatment for industrial purposes and from wastewater treatment. The largest component of hazardous waste was production waste, including post-distillation and post-reaction residue.

In 2015, the ORLEN Group recycled more than 980 000 tonnes and disposed of more than 27 000 tonnes of waste. The largest amounts of waste were recovered by Inowrocławskie Kopalnie Soli Solino through brine concentration. The most frequently used recovery method were regeneration or re-refining of waste oils.

In 2015, 12 companies were obliged to meet the reporting requirements concerning waste, under the European Pollutant Release and Transfer Register (E-PRTR). Total weight of transferred waste was 105, 752 tonnes.

Largest groups of waste generated by the Płock Production Plant in 2015:

In 2015, the amount of waste generated by the Płock Production Plant went down by 19.57% year on year. This change was mainly attributable to a larger amount of scrap generated in 2014 in connection with demolition work and new projects, scrap being the kind of waste whose volumes are likely to fluctuate the most. Under applicable agreements, PKN ORLEN is the scrap producer.

In 2015, 5 639.648 Mg of hazardous waste and 677.045 Mg of non-hazardous waste was sent for recycling abroad.

Under its permit, the Płock Production Plant is allowed to store certain waste in storage facilities which are a part of the establishment. The weight of waste collected in 2015 was 10, 717.6 Mg, of which 10 491.2 Mg was gypsum from the flue gas desulfurization unit.

In 2015, the Włocławek PTA Plant generated 18.09% more waste than in 2014. Waste was managed in compliance with the relevant integrated permit. The largest groups of generated waste was waste code 070108* (spilled terephthalic acid − 529.9 Mg) and 070110* (filter cakes − 5 773.2 Mg). These are residual wastes from the recycling and regeneration of catalysts used in the production of terephthalic acid. In 2015, they were transferred to a third party.

Both the Płock Production Plant and the Włocławek PTA Plant stayed well within the limits specified in their respective integrated permits.

In 2015, the Płock Production Plant carried out segregated collection of municipal waste. Pursuant to a resolution of the Council of the Town of Płock, on July 1st 2015 the municipality of Płock took over municipal waste management.

PKN ORLEN submits its PRTR reports, with information on the release and transfer of pollutants to the air, water and soil, as well as on waste transferred to specialised waste disposal contractors or to landfill sites, to the Provincial Environmental Protection Inspector.

The main role of the European Pollutant Release and Transfer Register (E-PRTR) is to inform the public of the emissions and transfers of waste and pollutants outside the site where they were generated, to help reduce and prevent their release.

Key elements of managing the Effluents aspect:

Effluents from all ORLEN Group companies are directed to industrial and rain water sewage systems and then undergo treatment. The total effluent discharge in 2015 was 53.9m m³.

The bulk of effluents (90%) are discharged to surface waters, and the balance is discharged to the sewage system. Substance load in effluents is reduced mainly at the wastewater treatment plants owned by the ORLEN group companies. The substance load in effluents discharged into the environment totalled almost 53, 000 tonnes.

PKN ORLEN operates a highly-efficient Central Wastewater Treatment Plant (CWTP), which treats wastewater from offices and social facilities, industrial wastewater and rainfall runoff from the premises of the Płock Production Plant, including that coming from third-party companies operating within the Plant’s premises. All wastewater funnelled to the CWTP is subject to a multi-step treatment process which includes mechanical, physical, chemical and biological treatments. Treated wastewater, meeting the criteria specified in the Company’s water permit, is discharged into the Vistula River. The quality of effluents that may be discharged from any specific installation is precisely defined in a quality/quantity standard, which is updated annually. At PKN ORLEN, some treated wastewater is reused to produce water suitable for various uses on the plant’s premises (other than for human consumption) or for fire-fighting purposes, which considerably reduces the quantity of water abstracted from the Vistula River and pollutant loads discharged into the river with effluents.

Reduced demand for recirculated wastewater and higher crude processing volumes increased the amount of wastewater discharged to the Vistula River by 2.71% compared with 2014. Due to higher discharge of wastewater to the Vistula River, the chemical oxygen demand (COD) load was up 2.55% on 2014, and phenol load increased by 3.7%.

At the PTA Plant in Włocławek, all wastewater associated with the production of terephthalic acid is discharged into the individual sewage systems of ANWIL S.A. in accordance with the decision of the Governor of the Province of Bydgoszcz. The Governor grants a water-law permit to discharge, into the sewage system owned by Zakłady Azotowe ANWIL of Włocławek, industrial wastewater containing substances particularly harmful to the water environment from the purified terephthalic acid (PTA) plant.

The lower COD and 5-day BOD load in effluents is related to the much lower COD and 5-day BOD load in effluents from the PTA and CAT plants following the metal recovery process, as a result of intensified monitoring of the S-2522A/B filter.

The rules of managing the aspect of compliance with environmental regulations are as follows:

In 2015, four ORLEN Group companies (Paramo, Českárafinérská, ORLEN Lietuva, and ORLEN OIL) were fined for breaching the conditions for the economic use of the environment. The fines were a consequence of industrial accidents, such as unsealing of the sewage system and a leakage during the filling of a tank with petroleum products and higher air pollutant emissions. The fines amounted to EUR 58,739.

The ORLEN Group companies pay fees for the economic use of the environment under applicable laws. The total amount of fees paid in 2015 exceeds EUR 12m. The fees for air pollution emissions paid by 17 ORLEN Group companies have the largest share in the total amount of environmental fees. The largest drop in the amount of fees occurred in the case of fees for discharge of effluents into the environment. Higher fees for waste storage are a consequence of higher amounts of waste placed in the landfill owned by ANWIL.

The Płock Production Plant and the Włocławek PTA Plant hold all relevant legally required permits based on which they operated in 2015.

Integrated permits and sectoral permits need to be updated on an on-going basis in keeping with the evolving legal environment and business needs.

In 2015, new administrative decisions were obtained or existing decisions were amended (12 decisions for the Płock Production Plant and 4 decisions for the Włocławek PTA Plant).

At the regional structures of PKN ORLEN, comprising:

Obligations resulting from the environmental law are performed by ORLEN Eko under an agreement supervised by the Environmental Protection Office.

In 2015, 145 required water-law permits for service stations were obtained. With respect to 14 service stations, applications and water-law surveys were filed with relevant environmental protection bodies and proceedings are pending to issue appropriate decisions.

In 2015, compliance of our operations with the environmental laws was verified by representatives of the Płock and Włocławek Units of the relevant Provincial Inspectorates of Environmental Protection (WIOŚ) during the following environmental inspections:

Three follow-up instructions were issued and subsequently accepted for implementation. Measurements taken during the inspections showed that the benzene emissions for ASN V and ASN III exceeded the permitted limits. Results of measurements performed by PKN ORLEN again, after the necessary actions were taken, were within the limits, so the penalty was stopped being charged.

Overall, 62 inspections were carried out at PKN ORLEN regional units by the Provincial Inspectorates of Environmental Protection, County Councils and Municipal Offices.

Provincial Inspectorates of Environmental Protection performed 47 inspections at service stations and issued 3 follow-up instructions. Identified irregularities included:

At fuel terminals, Provincial Inspectorates of Environmental Protection performed 11 inspections. One follow-up instruction was issued for the operation of a unit discharging wastewater to the river in accordance with the relevant water permit. The instruction required that the conditions of carrying out quality control of the wastewater be met.

In 2015, the Katowice Municipal Office and the Regional Directorate for Environmental Protection performed an inspection of the BM 42 Katowice Separate Asset.

Other companies of the ORLEN Group were also inspected by external bodies for environmental protection, mainly the Environmental Protection Inspection Authority. The inspections focused on whether the environmental requirements imposed by regulations and administrative decisions were complied with. In 2015, 46 inspections at subsidiaries and 13 distribution facilities of Benzina (7 inspections) and ORLEN Paliwa (6 inspections) were carried out.

They focused on:

Project reviews were also performed on various facilities at the final stage of their commissioning.

In 2015, administrative authorities performed a total of 131 environmental inspections at the ORLEN Group companies and their distribution facilities and issued 13 follow-up instructions, which were complied with by the relevant companies.

Capital expenditure

Total spending on environmental protection projects by the companies of the ORLEN Group (PKN ORLEN including) amounted to nearly EUR 76.8m. It was mainly internally generated funds of the companies. Capital expenditure by the Group companies was EUR 21.36m, and by PKN ORLEN − EUR 55.5m.

In 2015, environmental protection spending at the Płock Production Plant reached PLN 237.04m, down by more than 50% year on year. Expenditure on environmental protection represented 12.68% of PKN ORLEN’s total capex budget in 2015.

In 2015, several projects were completed. Additionally, the Company continued a very important pro-environmental investment, namely construction of flue gas denitrification and dust removal units on individual boilers of the CCGT unit, as well as construction of a flue gas desulfurization unit common for all boilers. In effect, the emissions of SO2, NOx and dust will be reduced, while the heat and power source used by the Company will reach compliance with the requirements of the Directive on Industrial Emissions (IED), effective from January 1st 2016. By the end of 2015, denitrification and dust removal units were installed on six boilers.

Spending on environmental protection at service stations amounted to PLN 6, 714 221.12 in 2015, down 33% year on year. It covered both capex and non-capex projects, primarily the upgrading of fuel tanks at service stations to protect soil and water against contamination, as well as proper water and wastewater management.

In 2015, other companies of the ORLEN Group also implemented a range of projects aimed at reducing energy intensity of the processes and greenhouse gas emissions, and at preventing environmental pollution. The most significant ones took place at Basell Orlen Polyolefins, Inowrocławska Kopalnia Soli SOLINO, and UNIPETROL RPA and Česká rafinérská in the Czech Republic. Such projects were also carried out by ORLEN Centrum Serwisowe, ANWIL and ORLEN Lietuva.

Environmental fees

Businesses using the environment are required to pay environmental charges, as provided for in the Environmental Protection Law of April 27th 2001. The Płock Production Plant pays environmental charges for air emissions, abstraction of water, and discharge of effluents to water and soil. The Włocławek PTA Plant pays only for air emissions since its abstraction of water and discharge of effluents are subject to a civil law agreement.

In 2015 the charges for air emissions paid by the Płock Production Plant decreased by 4% year on year. The change was an effect of using better quality fuels and operating walled off units for treating flue gas from the CHP plant.

In 2015, total fees for the economic use of the environment at PKN ORLEN’s regional units dropped by 2.89%. As regards individual components of the fees, charges for air emissions and abstraction of water went down, while fees for waste water discharge went up.

In 2015, PKN ORLEN recorded an overall drop in the total amount of fees for the economic use of the environment, down 1.8% compared with 2014. This was mainly due to the reduction of charges for substance emissions to the air at the Płock Production Plant, and for abstraction of water at regional units.

The ORLEN Group companies pay fees for the economic use of the environment under applicable laws. The total amount of fees paid in 2015 exceeded EUR 12m. The fees for air emissions paid by 17 companies of the ORLEN Group had the largest share in the total amount of environmental fees. The largest drop in the amount of fees occurred in the case of fees for discharge of effluents into the environment. Higher fees for waste storage are a consequence of higher amounts of waste disposed of in the landfill owned by ANWIL.

Responsible Care Programme

As in the previous years, in 2015 PKN ORLEN completed the required questionnaires, surveys and reports, and delivered them to the Programme’s Secretarial Office. The information is then used to assess the condition of the environment and the progress of the Responsible Care implementation by chemical industry companies that have subscribed to the initiative and are members of the Polish Chamber of Chemical Industry.

Other ORLEN Group companies participating in the Responsible Care Programme include Inowrocławskie Kopalnie Soli Solino, Basell Orlen Polyolefins, ORLEN Asfalt, and ORLEN Eko.

PKN ORLEN also performed its obligations under the Responsible Care Framework Management System. In January 2015, an audit conducted to assess compliance of the System at PKN ORLEN confirmed its correct implementation. The RCMS certification received for the second time will be valid for the next four years.

Furthermore, in 2015 PKN ORLEN signed the revised Responsible Care Global Charter.

Under the Programme, PKN ORLEN implemented the projects declared for 2015 in the area of Health, Safety and Environment (HSE). It completed 36 out of the 51 declared projects, while 15 are under way and will be continued in 2016.

Besides reporting and mandatory tasks, the Company continued an initiative to increase employees’ involvement in learning and expanding their knowledge about the ideas behind and guidelines of the Responsible Care Programme, and to raise their awareness of the nature around us. Once again PKN ORLEN joined the Programme’s projects, including a range of competitions for employees organised in connection with important events in the area of environmental protection such as the Baltic Sea Protection Day, the World Day for Safety and Health at Work, the European Car-Free Day, and the Catch the Hare photo competition.

Management of the Environmental Grievance Mechanisms aspect includes the following elements:

In 2015, 213 cases were reported to the Environmental Inspection System, including 97 planned events, 53 unforeseen events, and 63 interventions.

In 2015, there were 63 interventions related to odour nuisance, including 51 cases reported by the inhabitants of the city of Płock, and 12 cases identified on the premises of the Płock plant. The growing number of complaints shows the raised environmental awareness in local communities arising from observation of the plant’s environmental impact. Such awareness stimulates initiatives to identify more effective routes towards sustainable development, and thus more effective ways to care for the environment.

Each external and internal intervention was considered on a case-by-case basis and with utmost care. In the areas where odour nuisance was identified, substance concentrations were measured, and ongoing monitoring of weather conditions and substance concentrations in automatic air monitoring stations was undertaken. The technical services took steps to check whether the production, repair and maintenance processes were run correctly and to minimise the nuisance.

Nine grievances concerning environmental impacts were filed with ORLEN Group companies other than PKN ORLEN. They were resolved in accordance with systemic internal procedures, and the filing persons received relevant feedback.