Current reports
Current report no. 6/2020
Information on the conclusion of a significant contract for the reconstruction of the boiler at Konin power plant
Legal basis:
Art. 17 item 1 MAR – inside information
Contents of the report:
Zespół Elektrowni Pątnów-Adamów-Konin SA ("Company") informs about the conclusion of an agreement on 27 March 2020 with the company Valmet Technologies ("General Contractor") regarding the implementation of a “turnkey” contract for the design and implementation of reconstruction K-7 boiler for fluidized bed boiler working in BFB technology ("Agreement").
The subject of the Agreement is the adaptation of the existing K-7 coal boiler, located at Konin power plant, to a BFB type fluidized bed boiler with stationary, bubble fluid bed, using biomass. The modernized 50 MWe installation will produce electricity and act as a backup for the currently operating biomass block supplying the city of Konin with heat. After the modernization of K-7 boiler, a power generation of approx. 100MWe (2x50MWe) using biomass as the basic fuel will be available at Konin power plant.
Pursuant to the concluded Agreement, the General Contractor's remuneration for performing the subject of the Agreement was set at the net amount of PLN 89.8 million, and the implementation period was set at 18 months from the date of conclusion of the Agreement. The total limit of all contractual penalties for any reason is up to 25% of the net contract price.
Reconstruction of K-7 boiler is the main element of the entire project consisting in the adaptation of the installation previously used for the production of electricity from lignite for biomass combustion. The total estimated cost of the project is approximately PLN 180 million.
The implemented project was submitted to the capacity market auction and obtained a 17-year contract, starting from 2024.
Signatures of persons representing the Company:
Henryk Sobierajski – President of the Management Board
Maciej Nietopiel – Vice President of the Management Board