Environmental management
Environmental management is an integral component of the integrated management system adopted by the Group.
Environmental management systems in place at the four key Group companies conform to the ISO 14001:2015 standard for environmental protection and pollution prevention. These systems also require the companies to assess compliance of their activities with the legal regulations and other standards and to constantly enhance their methodologies for environmental protection.
In 2022, Grupa Azoty S.A. implemented the Environmental Policy with a primary focus on promoting clean production, reducing the consumption of natural resources, ongoing initiatives to curtail the use of raw materials and utilities, minimising pollutant emissions, and efficiently managing waste, while ensuring industrial process safety through effective accident prevention measures.
See our Environmental Policy.
Given the extensive scale and scope of our operations and capabilities, our commitment is to go beyond what is required by law. Decarbonisation of production and energy efficiency underpin our roadmap for climate transition until 2030. A more detailed description is presented in the Group’s business strategy and ESG strategy, as well as in the Green Azoty project, the crucial initiative in this context. The Group aims to reduce its coal-based electricity consumption to less than 50% by 2030.
BEST PRACTICE
Inland waterway transport
In 2022, Grupa Azoty Kędzierzyn and Trans International Logistic Centrum signed a letter of intent to execute certain logistics projects and restore transport via inland waterways. The letter announces plans to restore inland navigation on the Kędzierzyn and Gliwice Canals forming part of the Oder Waterway, and construct an intermodal terminal on the premises of the Kędzierzyn-Koźle plant. Plans also include the launch of a river transport system spanning the Kędzierzyn-Koźle Port Azoty – Wrocław section.
Initiatives to mitigate environmental impacts of products and services implemented or commenced in 2022
Grupa Azoty S.A.
- Construction of a turbo generator set using steam from the Sulfuric Acid Department and the Dual-Pressure Nitric Acid Unit, and a 4 MPa steam pipeline. Once completed, the project will harness waste heat to generate electricity.
- Upgrade of power generation facilities at the parent. The project will provide Grupa Azoty S.A. with a peak-load/reserve source that would meet the emission requirements arising from BAT conclusions, while allowing it to maintain a sustained generation capacity of the process heat source.
- Adapting the flue gas desulfurisation unit to BAT conclusions. Upon completion, the project will adjust the FGD unit of boiler K-5, which is the main source of heat for Grupa Azoty S.A., to the new requirements set out in Commission Implementing Decision (EU) 2017/1442 of July 31st 2017 establishing best available techniques (BAT) conclusions for large combustion plants.
- Upgrade of the hot water network. The project will reduce heat losses in transmission pipelines and ensure security of heat supplies to internal customers and the City of Tarnów.
- Neutralisation unit (for ammonium nitrate). Once completed, the project will reduce steam heat consumption in the production process and mitigate its negative environmental impacts.
- Construction of a neutralisation and precipitation unit. Once completed, the project will reduce steam heat consumption in the production process and mitigate its negative environmental impacts.
- Construction of a sludge drying unit. The project will reduce the amount of waste generated in the treatment of industrial wastewater, while mitigating odour impacts.
Grupa Azoty Puławy
- Since the RSM®, Pulaska® and RSM®S liquid fertilizers sold to customers are loaded into rail and road tankers, they do not require disposable packaging, which reduces the quantity of materials used (plastic film, bags, pallets) and waste volumes.
- A new product was placed on the market: urea with a urease inhibitor (Pulrea + INu), designed to reduce ammonia emissions during its application as a fertilizer. The new product facilitates compliance with the national environmental requirements mandated by Directive 2016/2284 of the European Parliament and of the Council of December 14th 2016 on the reduction of national emissions of certain atmospheric pollutants (the ‘NEC Directive’). The Directive establishes reduction commitments for the member states’ anthropogenic atmospheric emissions of a number of pollutants, including ammonia (NH3).
- Upgrade of the circulation water system at the Ammonia Plant was completed.
- The stripper at the Urea 2 synthesis section was upgraded, which will enhance the unit’s energy efficiency.
- Construction of an ammonium nitrate melt production unit was completed. Construction of an accompanying nitric acid unit is in progress, which will not only reduce the emissions of nitrogen compounds, but will also improve the energy efficiency of nitrate fertilizer production.
- The continued, gradual modernisation of lighting systems, cable ducts and switchgears is also indirectly improving energy efficiency and environmental performance.
Grupa Azoty Police
- Replacement of absorption tower WAII at Line 7 of the Sulfuric Acid Department was completed. The purpose of the project was to maintain uninterrupted operation of the sulfuric acid and steam production unit and to avoid a major accident that could result in environmental contamination (leakage of sulfuric acid into the soil).
- Construction of pumping station P5 at the drainage ditch of the iron sulfate landfill site was completed for a more effective process of intercepting contaminants from drainage ditches, leading to increased protection of groundwater from contamination.
- Further progress on the project to make production of demineralised water independent of variable salinity of the Oder River and increase the capacity to produce treated water for special applications. The aim is to safeguard Grupa Azoty Police against periodic spikes in the Oder salinity levels, allowing it to use the river as the sole source of water treated for special applications.
- Replacement of absorption tower WA I with a new absorption tower on Line 3 is under way. The purpose is to maintain uninterrupted operation of the sulfuric acid and steam production unit and to avoid a major accident that could result in environmental contamination (leakage of sulfuric acid into the soil).
- Recycling of hydrogen originating from the propylene unit to be used at the ammonia unit. The objective behind the project is to lower the consumption of natural gas in ammonia production and thus reduce carbon dioxide emissions.
- Construction of facilities and infrastructure for the processing and treatment of ferrous sulfate is in progress. Once completed, the project will significantly reduce the volumes of ferrous sulfate landfilled as waste through its utilisation.
- Roof replacement on facility 363 – removal of asbestos. The project was undertaken in view of the need to remove asbestos cement roofing panels to comply with the applicable laws requiring that all products containing asbestos be removed from buildings and other structures.
Grupa Azoty Kędzierzyn
- Extension of the ammonia liquefaction unit and upgrade of the ammonia compression unit at the Ammonia Department Cooling Centre.
- Modification of the catalytic high-pressure partial combustion unit for natural gas, with upgrade of the E-102 boiler and E-117 superheater to adapt them to the new technological conditions.
- Construction of a peak-load/reserve boiler house with a 100 Mg/h gas-fired steam generator – replacement of obsolete Pauker coal-fired steam boilers with a gas-fired reserve/peak-load boiler.
- Increased control over separation of the aqueous and organic phases in the production of special esters by improving the cooling of condensate entering the separators on leaving the condenser.
- Construction of a 1 MW solar PV system in the field and a 30 kW system on the roof of an office building.
- Continued land remediation at the site of the decommissioned semi-hard wax and chromopol unit in accordance with the amended decision issued by the Regional Environmental Protection Directorate.
Poland is Europe’s third largest producer of hydrogen, with the Grupa Azoty Group’s production accounting for over 35% of all domestic output.1 Hydrogen is used by the Group as a feedstock for its internally-produced ammonia.
Since 2021, the Grupa Azoty Group has been a member of the European Clean Hydrogen Alliance, a platform for networking with the leading energy sector players through which we can contribute to developing the European hydrogen market. Our aim is to produce green hydrogen through the electrolysis process powered by renewables.
Hydrogen and ammonia produced using renewable energy have the potential to become a fuel of the future for railway transport. Given the size of demand that would be generated by hydrogen-powered rail vehicles, we believe this industry could be a major catalyst of accelerated uptake of hydrogen as a fuel across all transport modes.
In 2022, Grupa Azoty S.A., Grupa Azoty Police, Grupa Azoty Polyolefins and the seaport operator Port Morski Police were among the signatories of a letter of intent to establish the West Pomeranian Hydrogen Valley. The companies expressed their intention to forge a partnership aimed at advancing the hydrogen economy, with a particular focus on the Province of Szczecin. The parties agreed they would promote the use of renewable energy sources in the region both in terms of the scale of deployment and the use of surplus energy for the production of green hydrogen. The signatories will strive for hydrogen-supported optimisation of the energy system and creating the best conditions to foster the hydrogen economy in the Province of Szczecin.
Grupa Azoty S.A.
In 2022, Grupa Azoty S.A. received a decision from the Kraków Provincial Inspectorate for Environmental Protection concerning a new amount of the ongoing fine for exceeding the permitted night-time noise levels identified during an inspection in 2021. The amount of the fine for 2022 was set at PLN 23,462.
Grupa Azoty Police
In 2022, no administrative sanctions were levied against the company for non-compliance with environmental protection laws or regulations.
Grupa Azoty Puławy
An analysis of the results of continuous measurements taken at the on-site CHP plant showed instances of exceeding the permitted emission levels for sulfur dioxide, nitrogen oxides and particulate matter in 2022. As at the date of this integrated report, no decision was issued to impose a fine on the company for excessive emissions in 2022.
Grupa Azoty Kędzierzyn
- No administrative or judicial sanctions were imposed in 2022 against Grupa Azoty Kędzierzyn for non-compliance with environmental protection laws or regulations. Following an inspection by the Provincial Inspectorate for Environmental Protection (WIOŚ) held in November and December 2022, two fines were imposed on specified individuals for a breach of certain terms of the Power Business Unit’s integrated pollution prevention and control permit and for failure to comply with the requirement to perform the relevant analysis and amend certain documents, and a caution was received in connection with failure to submit the required notification to WIOŚ in Opole.
- The company received a decision of the Marshal of the Province of Opole postponing the payment of charges in a total amount of PLN 4,240,590, which had been increased for 2021 due to the extended service life of coal-fired boilers, until May 31st 2024. The postponement was granted in view of timely implementation of the project to construct of a peak-load/reserve boiler house with a 100 Mg/h gas-fired steam generator.
- In 2022, Grupa Azoty Kędzierzyn reported a significant extension of the service life of boilers covered by time derogations, but no financial consequences have been incurred to date. In 2022, the company did not pay any penalties for non-compliance with environmental protection regulations, but recognised an increased charge (PLN 2,366,587.00) for the extended service life of boilers covered by time derogations. Its payment was postponed until May 31st 2024 by the decision of the Marshal of the Province of Opole in connection with the ‘Construction of a peak-load/reserve boiler house with a 100 Mg/h gas-fired steam generator’ project.
