Posejdon (ORLEN Neptun) + HyFly2 (PKN ORLEN)

EU Electricity Market Integration Strategy (strategic goals):

• Integration of renewable energy sources with green hydrogen production (especially offshore wind power);

• Development of hydrogen industrial clusters that will generate demand for green hydrogen (e.g. chemical factories);

• Adaptation of natural gas pipelines to transport hydrogen admixtures and construction of dedicated hydrogen pipelines within the EU;

• Positioning hydrogen as a strategic energy carrier for sector coupling and alternative fuel.

EU Strategy for Offshore Wind Energy (strategic goals):

• Within the framework of the Offshore Strategy, the Electricity Market Integration Strategy and the Hydrogen Strategy, the European Commission stresses the great importance of energy sector coupling (so-called sector coupling), where the main energy carrier will be hydrogen;

• The Offshore Wind Strategy emphasizes that the development of transmission networks should also take into account the possibility of connecting electrolyzers to offshore wind farms under construction;

• Offshore wind sector is an opportunity for a large-scale and high-volume hydrogen production.

EU Hydrogen Strategy:

• 6 GW of electrolyzer capacity installed by 2024, 1 million tons of annual green hydrogen production volume;

• 40 GW of electrolyzer capacity to be installed in the EU by 2030, 10 million tons of green hydrogen production volume. An additional 40 GW of electrolyzers to be installed in North Africa and Ukraine (EU imports);

• 180 - 470 billion euros of investment in green hydrogen in the EU by 2050.

In order to secure Europe`s commitment to climate change, energy security and a low carbon economy, offshore wind should be considered as a crucial component to the power mix.

The project will result in:

• reduction of CO2 emissions into the atmosphere ( minimum 0.5 million tons/year);

• reduction of fossil fuels consumption (a minimum of 130 thousand tons/year);

• improving the region's energy security;

• development of local infrastructure;

• increasing fertilizer production.

The project bears the following hallmarks of innovation:

• The project is the first of its kind in the EU, the distinguishing feature will be the synthesis process of CO2, CO and H2 selected in such a way that the resulting hydrocarbons can be utilized simultaneously in two areas of industry, i.e. in refinery processes and in petrochemical processes. The selection of the parameters of the synthesis process represents the know-how in terms of the type of catalysts and process parameters, selected in such a way as to meet the optimal boundary conditions of fossil fuel substitutes at the molecular level, in terms of the quality of the petrochemical and refinery feedstock.

• The results of the implementation and the end result of the project differ significantly from the processes and technologies currently offered on the market. This is an innovative way of combining several existing technologies together with a significant change in the parameters of these technologies, there is currently no such project in the EU.

• The project is characterized by a high degree of innovation, as it involves the use of significantly changed technologies and manufacturing and conversion processes.

• As a result of project implementation, there will be a significant reduction in CO2 emissions as well as a reduction in fossil fuel consumption.

The project includes the construction of new infrastructure.

Posejdon + HyFly2 will connect the transmission systems of Poland, Lithuania, Latvia and Estonia.

Promoters and implementing entities are:

ORLEN Group - Polish fuel and energy company;

Transmission system operators: PSE S.A. (Poland), Litgrid AB (Lithuania), AS "Augstsprieguma tīkls" (Latvia) and Elering AS (Estonia);

Other beneficiaries: Republic of Poland, Republic of Lithuania, Republic of Latvia and Republic of Estonia.