Polish firms to build $1.2 billion coal gasification project

Zaklady Azotowe Pulawy S.A., Poland's largest fertilizer maker, is planning to build a $1.2 billion coal gasification installation in cooperation with state-owned coal miner Lubelski Wegiel Bogdanka S.A., which operates in the "Bogdanka" coal mine region in eastern Poland.

Zaklady Azotow currently uses about 1 million cubic meters of natural gas per year to produce fertilizers. The new installation, which will take a coal feed of up to 1.3 billion tons per year, is expected to satisfy about 50% of the company's demand.

Coal for the installation will come from the Bogdanka mine, which produces about 5 million tons of coal per year. Recently, Zaklady Azotow and Lubelski Wegiel discussed prospects for the coal gasification project in order to cooperate in the area of coal processing for application in chemical production and power generation. The timeframe is about five years, and a project feasibility study would be prepared in coming months to determine details and financing.

Such coal gasification is one of the key projects included in Zaklady Azotow's business strategy for 2007-17, helping the company to diversify its supply raw material sources. The company has been the leader in Poland's fertilizers sector for more than 40 years and has products in the American market.