Polish utility Tauron plans to increase coal production by 50pc by 2012 to reduce its dependence on external suppliers, the company said its initial public offering (IPO) prospectus.
Tauron is investing in coal production because it envisages that the fuel will remain its key feedstock, despite the planned shutdown of some of its ageing coal-fired power plants.
The company produced 4.9mn t of coal last year through its coal-producing subsidiary Poludnowy Koncern Weglowy (PKW), including 3.3mn t consumed by its power stations. It bought 5.9mn t from domestic coal producers, mainly Kompania Weglowa.
Tauron plans to invest 1.5bn zlotys (?70mn) to expand coal production capacity to 7.5mn t/yr by 2012. To achieve this, the utility will expand its existing mines as well as acquire one mine from Kompania Weglowa.
The company plans to shut down more than 1,500MW or 30pc of its installed coal-fired generation capacity by 2018 as part of a major infrastructure upgrade.
The closed generators will be replaced by new units mainly coal fired, but also gas and biomass fired Tauron said in its IPO prospectus. By the end of 2012, the company plans to start construction of new generation units totalling 3,000MW.
Tauron is investing in coal production because it envisages that the fuel will remain its key feedstock, despite the planned shutdown of some of its ageing coal-fired power plants.
The company produced 4.9mn t of coal last year through its coal-producing subsidiary Poludnowy Koncern Weglowy (PKW), including 3.3mn t consumed by its power stations. It bought 5.9mn t from domestic coal producers, mainly Kompania Weglowa.
Tauron plans to invest 1.5bn zlotys (?70mn) to expand coal production capacity to 7.5mn t/yr by 2012. To achieve this, the utility will expand its existing mines as well as acquire one mine from Kompania Weglowa.
The company plans to shut down more than 1,500MW or 30pc of its installed coal-fired generation capacity by 2018 as part of a major infrastructure upgrade.
The closed generators will be replaced by new units mainly coal fired, but also gas and biomass fired Tauron said in its IPO prospectus. By the end of 2012, the company plans to start construction of new generation units totalling 3,000MW.
