The updated ORLEN Group's Strategy 2030 was published after the completion of mergers with the Energa Group, Grupa LOTOS and PGNiG, A process that created a European multi-utility group with diversified revenue streams and sufficient resources to lead the energy transition in the region.
Strategic objectives until 2030
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The updated strategy assumes maximising value in the segments and business areas in which ORLEN already enjoys a strong strategic position, major capital expenditure projects in new growth areas (such as renewable energy), and investing in the future by exploring new promising areas. The current strategy sets more ambitious green targets for decarbonisation and installed renewable energy capacity, which align with ORLEN’s ambitions as the region's energy transition leader, reflect global trends, and put the Group on a path to achieve carbon neutrality by 2050.
We have aligned our strategy with the new market context
New asset configuration within the Group
- Integration with Grupa LOTOS, PGNiG and Energa opens up new growth opportunities
- Support for the energy transition through coordinated transformation of a broad group of assets
Long-term trends
- New regulations, including Fit for 55, REPowerEU, RED III and extended EU Taxonomy; rising prices of emission allowances (EUAs)
- New funding opportunities (e.g., sustainable financing) with a change in the availability of capital
Geopolitical changes and economic cycles
- War in Ukraine and constraints on energy and commodity flows
- Disruptions on fuel and commodity (crude oil, gas) markets; price volatility of energy and commodities
New business opportunities
- Petrochemicals: including advanced recycling
- Low-carbon fuels: biofuels and synthetic fuels
- Electric mobility: EV charging infrastructure
- Renewable hydrogen in transport, industry and energy generation
Everything we do at the ORLEN Group is underpinned by our values
Our 2030 aspirations
In response to trends and challenges facing the energy sector, the ORLEN Group intends to become the leader of the energy transition in Central Europe. In 2030, the ORLEN Group will be:
- a leading player in Europe with a presence along the value chain and cumulative EBITDA in excess of PLN 400 billion in 2023–2030;
- a leader of the energy transition in the region, with more than 9 GW of installed renewable energy capacity;
- a provider of integrated services for customers that meets their fuel, energy and convenience shopping needs, relying on existing and new channels and on digital technologies;
- a responsible corporate citizen investing in sustainable development, energy transition, decarbonisation, recycling and community initiatives;
- a stable source of value creation stemming from a responsible financial policy and a focus on maximising returns on investments combined with efforts to maintain a stable balance sheet.
Strategic logic behind ORLEN Group’s growth
By 2030, we plan to spend a total of PLN 320 billion on investment projects. The Group’s growth is based on a diversified portfolio of investments in its existing and future business areas.
Maximising value in the segments and business areas in which the ORLEN Group already has a strong strategic position: refining, gas-fired power generation, conventional power generation, gas distribution, fuel retail and oil production. These strategic directions will account for approximately 35% of total capex.
The key investment directions in this strategic field will be:
- Refining: emissions reduction through the use of carbon capture, utilisation and storage (CCUS) technologies and energy efficiency projects;
- Gas-fired power generation: expansion of CCGT units to balance the Polish electric power system and replace high-emission coal-fired power plants and CHP plants;
- Gas distribution network: extension of gas source connections (including biogas and biomethane plants).
Strategic development. Most of the capital expenditure will be allocated to segments that align with the Company’s strategic ambitions. Around PLN 180–200 billion will be spent on new prospective growth areas, including mainly renewable energy and advanced petrochemicals.
The key investment directions in this strategic field will be:
- Petrochemicals: increasing the share of advanced and speciality products in the product portfolio, including through projects implemented with international partners and growth of the share of olefins;
- Renewable energy: implementation of onshore wind power, solar PV and hydropower projects;
- Biogas: Expansion of the biogas and biomethane plants portfolio;
- Electric mobility: expanding the EV charging network to 10 thousand points in Poland, the Czech Republic and Germany.
Investing in the future. Growth directions where the ORLEN Group plans to strategically position itself to prepare for market challenges expected to have a major impact after 2030: hydrogen technologies, synthetic fuels, CCUS (for own needs and as a service for third-party clients), SMR, recycling.
The key investment directions in this strategic field are:
- Hydrogen technologies: development of renewable hydrogen production and distribution assets;
- Synthetic fuels: construction of assets for the production of synthetic fuels;
- SMR: construction of a 300 MW small nuclear reactors.
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ORLEN Group 2022 Integrated Report
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