One of the goals set in the PGNiG Group’s Strategy is to step up innovation by effective implementation of R&D and innovation projects.
To this end, three key strategic aspirations were set, that is, increasing commitment to and efficiency in the execution of R&D and innovation projects, improving the PGNiG Group’s operating efficiency, and building the Group’s image. The Corporate Centre comprises the PGNiG Head Office with 16 Departments and two Offices.
The Corporate Centre comprises the PGNiG Head Office with 16 Departments and two Offices.
At the PGNiG Head Office, the R&D&I activities (solution identification, development, implementation/commercialisation), including cooperation with research and development institutions, as well as intellectual property matters are managed by the Research and Innovation Department The relevant organisational units are the Research and Innovation Department, the Business Development Department, and Central Measurement and Research Laboratory (CLPB).
Read more about Corporate Center and other Group’s activities here.
In 2020, the Department oversaw work on 150 research, development and innovation projects. In 2020, the PGNiG Group spent a total of approximately PLN 515m on R&D&I and hydrocarbon identification and exploration projects, of which at the PGNiG Group companies: approximately PLN 151m, at PGNiG: approximately PLN 364m (including approximately PLN 30m on R&D&I projects and approximately PLN 334m on hydrocarbon identification and exploration projects (at the Geology and Production Branch)).
The programme is part of the PGNiG Group’s Strategy for 2017-2022. Its objective is to start implementation (pilots/demonstrations) of hydrogen technologies in specific areas of the PGNiG Group’s business, including in particular in the distribution segment as well as the storage and production segment, on the basis of identified technological competencies and experience gained through successive R&D&I projects. The programme also aims to involve a team of specialists from all areas of the PGNiG Group’s business where a business case for implementing hydrogen technologies can be identified. Co-operation between stakeholders from different areas of the Company’s operations, while creating a single, coherent value chain, will contribute to the PGNiG Group’s commitment and increased responsibility for development and innovation growth, reduce project implementation costs, improve profitability of potential investments, and enhance the allocation of capital (financial, material and human).
The following projects are implemented under the Program:
An island research network to add green hydrogen to natural gas and to test the impact of hydrogen on the gas infrastructure of the distribution network;
Expanding CLPB’s laboratory competence to include alternative fuel quality testing
Construction of a research hydrogen refuelling station.
Was launched in the third quarter of 2020. The project is carried out by GSP and focuses on large-scale hydrogen storage in the Mogilno and Kosakowo salt caverns.
As part of the Programme, PGNiG is initiating further ventures related to the development of the Company’s proprietary hydrogen technologies (such as fuel cells or hydrogen-fuelled engines). Activities in the Programme also include efforts not directly related to R&D&I projects. In September 2020, PGNiG joined the Hydrogen Europe Association, and in October – the European Clean Hydrogen Alliance (ECH2A). These are key platforms for broad cooperation in the development of the entire hydrogen value chain to build a hydrogen ecosystem in Europe over three decades.
In the Exploration and Production area, the AQUA project was launched in the third quarter of 2020, with the objective to investigate the feasibility of producing geothermal energy from existing (negative) oil wells and to verify the viability of using wells nearing depletion for geothermal energy extraction purposes.
As part of the Joint Venture INGA (Innovative Gas Industry) organized in cooperation with NCBiR and GAZ-SYSTEM S.A. in 2020, 8 research and development projects were continued in the area of: „Hydrocarbon exploration, extraction and production of gaseous fuels” and „Gas networks” – selected in the 1st Competition.
In connection with the periodic verification of R & D & I projects in terms of their business viability, in December 2020 a corporate decision was made to close three R & D projects (SILESIAFRAC, COKEPROP, MIGASLIDRILL) implemented under WP INGA on methane drainage of mines or hard coal seams implemented as part of the area „Exploration, extraction of hydrocarbons and production of gaseous fuels” and one project in the area of ”Gas networks” (VELA-GAZ). The decision was made based on the recommendations of the Main Users of the projects, i.e. the Geology and Exploitation Department of PGNiG and PSG, who reported a real risk of the inability to implement the results of the above-mentioned projects in the future. projects for the operations of companies and generating benefits related to them, which is a requirement for the implementation of R & D & I projects, both financed from own and public funds, as part of tools implemented by the National Center for Research and Development.
Two exploration and production projects (SYNERGA and INNKARP), one post-exploitation methane recovery project (AMMUSCB) and one alternative fuels project (DME) are under way. In the first quarter of 2020, the recruitment for the 2nd WP INGA Competition was launched. The total budget of the projects for the PGNiG Group for the 1st and 2nd WP INGA calls was PLN 266 million. The goal of the INGA Joint Venture is to increase the innovativeness and competitiveness of the PGNiG Group’s enterprises in Poland and on the global market in the long term through the implementation of research and development projects focused on commercialization and cooperation with scientific units.
In 2020, the R & D & I area initiated a systemic approach to obtaining preferential financing in the Capital Group. Procedures have been developed to organize the issues of identification of aid programs, division of responsibilities when applying for preferential funds and external communication with ministries. As a result, the companies of the PGNiG Group regularly verify the sources of financing in the current and future EU financial perspective and undertake application activities for the most interesting R&D, innovative and investment projects.
Activities were also continued within the Committee for Strategic Projects in the Research, Development and Innovation Area of the PGNiG Group. The Committee is an important forum for strategic R & D & I activities, knowledge exchange and discussions to achieve synergies in key areas of activity.
In 2020, four new patent decisions were obtained for applications resulting from ongoing R&D projects.
In 2020, the Business Development Department worked on a total of 21 development projects, focusing on the following four key areas: Renewable Energy Sources, Alternative Fuels, Energy Efficiency and the Inn-Vento Start-up Centre.
In 2020, the „Photovoltaics Business” project was established, as part of which, in the first stage, analytical work was carried out and a long-term business development plan (with economic parameters) for the use of photovoltaic technologies at the PGNiG Group was prepared. As part of the developed concept, a business model was prepared, assuming PGNiG’s entry into the prosumer photovoltaic market in Poland for retail and institutional customers, and implementation of this model was initiated.
In parallel, the „Photovoltaic Installations” project was established, as part of which an inventory was made of roofs and own land that meet the criteria for the construction of photovoltaic installations and farms at PGNiG and the PGNiG Group. Also the first photovoltaic installation was built and put into operation on PGNiG’s properties. A concept for the development of large-scale photovoltaic farm projects has also been developed, involving the conditional acquisition of special purpose vehicles developing such projects. Technical and commercial criteria for target projects were formulated and preliminary discussions were initiated with developers of such projects.
The „WIND” project was also launched, focusing on measures to achieve economic benefits and diversify the Group’s revenue streams through PGNiG’s entry into a new RES business segment, i.e. wind farm. The project explores acquisition opportunities for ready-to-build and operational wind farms, and as a result, PGNiG has started selective acquisition processes that will continue in 2021
In 2020, looking for new business development opportunities in the area of alternative fuels, with a focus on the use of LNG, bioLNG, and CNG:
In addition, in the „Geo-Methane II” project, a final decision was taken in July 2020 to cease work at the Budryk stream, and in view of the inability to carry out work also in the other streams (Bielszowice/ PGG, Brzeszcze/ Tauron Wydobycie, Murcki-Staszic/PGG, Pniówek and Szczygłowice/ JSW); a decision was made to work towards closing the project.
In 2020, work was completed on the „ESCO” project – a business concept was developed for solutions and products for the energy-related services market (in particular, energy management solutions), as well as an implementation plan and economic parameters for possible entry models of the PGNiG Group in individual market segments for current and potential customers of the PGNiG Group.
In 2020, a programme entitled „Improvement of Energy Efficiency at the PGNiG Group” was launched to coordinate measures aimed at achieving benefits in energy management at the PGNiG Group. Under the Programme, the first systemic solutions were launched whose expected effect will be to improve the energy efficiency. These include the 'Debno 4.0′ project, launched in 2020, which involves implementing a system for monitoring and managing utilities at the Dębno Oil and Natural Gas Extraction Facility; as well as the „BMP (Building Management Platform)” project to prepare and implement the concept of a platform for monitoring and systemic management of energy at the Company’s Head Office.
PGNiG was certified in 2020 for implementing an Energy Management System compliant with the ISO:50001:2011 standard. The Energy Management System documentation was updated to meet the requirements of the ISO 50001:2018 standard.
In 2020, InnVento’s activity focused on cooperation with the Huge Tech accelerator, operator of the IDEA Global acceleration programme, co-financed with public funds (Measure 2.5 POIR Acceleration programmes). As part of this cooperation, PGNiG can carry out pilot projects with selected startups in business areas that have been identified as promising for the implementation of technologies from small technology companies. In 2020, three pilots were ultimately implemented in PGNiG in the following areas:
In addition, another 6 technological solutions were identified, which will be analysed in terms of their test implementation at the PGNiG Group, i.e.:
The main objective of CLPB is to maintain and increase its market position as a leading calibration and testing laboratory accredited by the Polish Centre of Accreditation and a verification point for measuring equipment and systems used in the natural gas industry as well as a natural gas quality control laboratory for all types of natural gases and its forms (CNG, LNG). In this area, CLPB continues to provide services such as testing the correctness and reliability of natural gas quality and quantity measurements, testing of metering equipment and systems, and preparation of technical analyses, opinions and technical expertise. Its services include validation of gas chromatographs for the purposes of natural gas settlements, calibration of measurement systems at gas infrastructure units, etc. CLPB’s key customers are both internal and external customers from Poland, Including the PGNiG Group companies, GAZ-SYSTEM, EuRoPolGaz S.A. and Polskie LNG S.A. as the largest accounts
The Branch provides metrology services for natural gas quality measurement equipment and quality assessment of natural gas. The largest customers in this respect are PGNiG Branches, PSG and GAZ-SYSTEM, as well as industrial companies using natural gas in their business.
In order to enhance efficiency and the ability to take on new R&D challenges, a new dedicated unit was established within the Branch in 2020, namely the Research, Development and Innovative Technology Office. The key projects launched by the Office are:
PGNiG’s activities are primarily aimed at strengthening the PGNiG Group’s position in the area of hydrogen technologies, executing and commercialising further R&D projects, actively acquiring and implementing innovative projects, and adapting the Group’s model of R&D&I activities to the evolving market environment and the Group’s strategic objectives. At the same time, new business areas that can increase the competitiveness of companies and strengthen their market position will be constantly analysed. These activities will be implemented over two time horizons:
Short-term horizon (until end 2021):
Medium-term horizon (2022–2023):
commercialisation/implementation into the PGNiG Group’s business of the results of R&D projects, including products and technologies developed from INGA projects – verified on an ongoing basis in terms of the commercialisation viability
In 2021, steps will be taken primarily to ensure efficient implementation of new business products at the PGNiG Group, based on business concepts, implementation plans and financial models prepared in 2020. New projects will also be gradually identified and developed.
In the area of renewable energy, in 2021 PGNiG will implement its concept to enter the prosumer photovoltaic market based on the developed business model, which will expand PGNiG’s offer for residential and institutional customers. Efforts will be stepped up to build and operate a portfolio of renewable electricity sources, including in the photovoltaics segment: development of photovoltaic installations on own land, acquisitions of photovoltaic farms and development of large-scale photovoltaic farm projects in accordance with the developed business concept. In the wind farm segment: acquisition of wind farm projects: ready for construction and operational wind farms.
The second stage of the “Magellan” project is planned to be completed by the end of 2021, which includes developing the infrastructure through procurement of innovative equipment that meets the actual needs of the shipping market, based on MTTS solutions (Multiple Truck-to-Ship, a multiplying technology that increases the volume and speed of bunkering). Also, the TANK BioLNG project is planned to be implemented in 2021-2022.
In the Energy Efficiency area, in 2021:
it is planned to obtain ISO 50001:2018 certification for the Energy Management System.
In 2021, the PGNiG Group plans to increase the scale of test projects with start-ups, building on cooperation with external partners (accelerators). To this end, steps will be taken to identify and verify the technological and business needs of PGNiG and key Group companies, as well as to support effective management of such projects within the PGNIG Group.
In 2021, CLPB plans to expand its measurement and testing activities by acquiring new customers, expanding the service offer, increasing the use of its expertise potential and existing infrastructure, and to intensify marketing efforts through such activities as campaigns targeted at entities that use infrastructure requiring certification. Other business development initiatives will include building CLPB’s competences and infrastructure to offer qualitative and quantitative testing and analytical services for alternative fuels.
Short-term plans provide for expanding CLPB’s competences to include analysis and quality testing of hydrogen as a low-emission vehicle fuel. Currently, there is no such laboratory in Poland, and the prospect of organising one becomes a very important element in the development of CLPB in the context of the emerging market for hydrogen fuel, as well as the quantitative and qualitative testing of natural gas-hydrogen mixtures and biomethane.
2021 is expected to see the launch of innovative hydrogen technology projects as part of the Hydrogen Programme in order to acquire broadly-defined know-how related to the operation of small-capacity co-generation systems based on fuel cells, and to implement gas engine technologies for safe and low-emission combustion of natural gas-hydrogen mixtures.