September 29, 2022

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MRiT announces its support for companies producing fertilizers and nitrogen compounds

MRiT announces its support for companies producing fertilizers and nitrogen compounds

The green light to establish direct power lines and help companies whose electricity and gas purchase costs exceed 3% of the value of production and that operate in industries designated by the European Commission. These are the components of the Entrepreneur Support Package prepared by the Ministry of Development and Technology.

The first aid scheme will target energy-intensive companies that have been particularly affected by the crisis.

Government aid announced for energy-intensive companies

The package for energy-intensive companies is very important from a supply chain point of view. Many of the raw materials that are produced in these enterprises are part of the entire economy – Minister Waldemar Boda at a press conference in the Prime Minister’s Chancellery.

In the ministry, we are working on a program that mitigates the effects of high electricity and gas prices among companies. We will allocate about 5 billion PLN to it. The money will be disbursed later this year. We expect about 250 companies to benefit from government assistance – confirms Valdemar Boda.

What agricultural companies will the MRiT support cover?

Energy-intensive companies whose purchase of electricity and gas costs at least 3% of the value of production and operate in industries designated by the European Commission will be able to apply for support.

These include:

  • steel products production,
  • ceramic tiles and tiles
  • fertilizers and nitrogen compounds,
  • Flat and domestic glass.

It covers the implementation period of the program 2022. It is possible to extend it for the next year. The requirement to pay compensation for 2023 is an extension or modification of the temporary framework.

Government assistance to energy-intensive companies is complementary to the indirect cost compensation program for energy-intensive industries. The budget for 2022-2031 will amount to approximately 45.4 billion PLN. The expected number of entrepreneurs who may apply for support is 200 entities from energy-intensive sectors and sub-sectors.

direct power lines

Another form of assistance to the business would be to accelerate the construction of so-called direct power lines that connect power generation units, particularly from renewable sources (eg wind farm, hydroelectric dam, solar farm) directly with the recipient.

The establishment of direct lines is mainly to contribute to the development of the distributed energy model, where energy is produced by small units or production facilities for local use. It also aims to encourage investments in small generation units based on renewable energy sources, which will supply the facilities with local energy. Hence the energy law amendment.

The development of direct lines allows entrepreneurs, especially in energy-intensive sectors (such as cement plants, paper mills, chemical plants) to obtain green energy and reduce energy costs. All this thanks to the abolition of many additional fees currently incurred by users of the global electricity network. This includes power charges (charged on readiness to secure electricity supply), cogeneration (used to promote greener electricity generation technologies) or grid variant.

Planned changes to the regulations include, among others:

  1. Clarify the definition of a beeline, clarify that the receiver connected to it can also be connected. In conjunction with the National Energy System (KSE)
  2. A direct line exemption from the obligation to obtain the approval of the head of the ERO office in three cases when:
  • Beeline provides electricity only from renewable energy sources; A beeline is established on real estate for which the entity applying for a permit to build a beeline has a legal title;
  • The line will only supply the facilities belonging to it or the facilities of its subsidiaries,
  • The direct line supplies power to the facility or to the consumer not connected to the NPS.

Mandatory issuance of connection conditions for a direct line (within 14 days) if power is not fed to the NPS.

Thanks to the introduction of Beeline, the value of new investments in Poland (only in the case of new investments in renewable energy for industrial recipients and new investments under PSI) may reach about PLN 37 billion.

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