Bumech S.A., a Silesian company listed on the Warsaw Stock Exchange (GPW), has secured up to PLN 25 million in financing to launch a new business activity focused on biomass production. The funds were provided in the form of an investment and working capital loan by Bumech’s main shareholder, Marcin Sutkowski.
Just days earlier, the company signed a biomass supply and sales agreement with an energy-sector partner. The contract covers the delivery of agro biomass and wood biomass, with an estimated total value of up to PLN 160 million net, and will remain in force until the end of April 2027.
Strategic shift toward biomass
The newly signed 200,000-ton biomass supply contract (valued at up to PLN 160 million), together with Bumech’s previously announced investment into in-house biofuel pellet production, marks a strategic milestone in the implementation of the Group’s long-term development plan.
The company aims to expand its product portfolio to include solid biomass fuels — a highly desirable resource for the professional energy sector, district heating companies, and individual consumers. Through the bundled sale of energy coal and biomass, Bumech intends to address evolving market demand and regulatory trends.
“We know this market extremely well and operate a nationwide distribution network for solid fuels — we fully intend to leverage that advantage, especially given the favourable outlook for ecological solid fuels,” said Marcin Sutkowski, main shareholder of Bumech S.A.
“Both the signed biomass contract and the launch of pellet production are natural steps in Bumech’s sustainable transformation. This project will not only strengthen our position in the alternative fuels market, but also supports our strategy of building independent, cycle-resistant revenue streams.”
Investment timeline and production targets
In early October, Bumech announced its intention to launch its own biomass fuel production plant, including packaging and distribution infrastructure. The initial investment outlay is estimated at PLN 11–15 million. The company plans to reach a target production level of 300,000 tons per year, with full implementation expected within 24 months from the acquisition of the property where the plant will be located.
“In the current regulatory environment, institutions that should be supporting entrepreneurship have limited ability to finance this type of project. That is why I have personally taken on the responsibility of funding this new, complementary and green business initiative,” added Sutkowski.
“I strongly believe in Bumech’s continued development and diversification — not only toward renewable energy, but also into the defence sector. Part of the funds will be allocated to that direction, while the remainder will strengthen the company’s working capital. We expect to announce further progress as early as November, with production planned to start in Q1 2026.”
Biomass as a pillar of long-term diversification
The investment in biomass is another move toward business diversification and financial stability for the Bumech Group. The company continues to execute a development strategy based on operational synergies between its established mining and maintenance activities and new environmentally oriented projects.
However, Sutkowski pointed out the unequal competitive environment in the Polish market:
“Unfortunately, the Polish state still treats private mining companies unfairly — offering no support, leaving them entirely on their own, while state-owned entities benefit from exceptionally generous — and unlawful — public aid and advantages stemming from subsidies. These create highly distorted competitive conditions, which PG Silesia has to battle with every day,” he said.
“Despite this, thanks to the team’s efforts, the restructuring process is moving in the right direction, and we remain focused on stabilisation, diversification, and long-term growth.”
