“The Energy of Tomorrow Starts Today” marks the most ambitious and largest developmental investment program in ORLEN’s history. The initiative aims to bolster energy security, increase gas production, and build four offshore wind farms, large-scale energy storage systems, and at least two small nuclear power plants.
“We will contribute to building energy independence for Poland and the regional economy. We aim to be secure, competitive, and modern. We will invest up to PLN 380 billion. This is the largest development program in Poland’s energy history. Our strategy is ambitious and responsible, a commitment to our customers and all Poles,” said Ireneusz Fąfara, President of the ORLEN Management Board, during the presentation of the “The Energy of Tomorrow Starts Today” strategy. “Our sector has much catching up to do. This is the decade of last chances for energy, which is why we are accelerating.”
Fąfara added, “At the same time, we are intensifying the integration of group companies, establishing and consolidating corporate governance standards, and implementing modern and transparent management practices. We are optimizing projects and processes to steadily increase ORLEN Group’s value for our shareholders.”
Direct Consumer Benefits and Strategic Investments
Beyond large-scale investments, modernization, and the development of energy production assets and infrastructure, ORLEN’s strategy includes initiatives that directly impact consumers. These investments are expected to make energy more affordable than it would be without the planned projects. ORLEN also plans to introduce innovative solutions and expand its offerings for customers.
The VITAY program will be expanded to include up to 10 million customers, who will benefit from a unified ecosystem for purchasing energy for households and transportation. A significant part of the updated strategy is the extension of ORLEN’s fuel portfolio, with over 25% of it based on zero-emission sources by 2035.
Key Investment Goals
“The Energy of Tomorrow Starts Today” includes precise investment plans, data, and economic indicators that ORLEN commits to achieving within the next decade:
- 27 billion m³ of natural gas – enough to fully meet Poland’s needs, supplied through increased production in Norway, Poland, and North America, as well as trade agreements.
- 4.3 GW of gas-powered energy capacity – sufficient to supply 7.5 million households.
- 1.4 GW of energy storage capacity – enabling 300,000 households to access power for 24 hours.
The strategy also includes the construction of four offshore wind farms and at least two small nuclear power plants. Recycling capacities within the ORLEN Group will increase from 35,000 tons to 250,000 tons annually by 2035. Products manufactured from renewable and circular materials will account for 10% of all petrochemical sales.
Shareholder Value and Environmental Responsibility
ORLEN’s new strategy also focuses on sharing profits with shareholders through steady dividend growth. The guaranteed dividend level for 2025 will increase from PLN 4.3 to PLN 4.5 per share. The progressive dividend policy envisions an annual increase of PLN 0.15 per share. Additionally, the Management Board may recommend a higher dividend payout of up to 25% of the year’s operational cash flow, minus financing costs.
By implementing these plans, ORLEN is set to lead Poland’s energy transition while ensuring energy security, modernizing infrastructure, and meeting ambitious environmental goals.
Source: ManagerPlus