Polish Coal Producer to Help with Power Plant Expansion

Bloomberg reported that PGE SA, Poland’s largest utility, and Kompania Weglowa SA, the largest coal producer in the nation, have signed an agreement to continue a $3.5-billion expansion of the Opole power plant.

As quoted in the market news:

‘Coal will again find its place in the Polish energy mix,’ [Prime Minister Donald] Tusk said. ‘We have to build a model for Opole that will make the project profitable or at least safe for PGE. It’s not about business for the company but the national interest of all Poles.’

Kompania, based in Katowice, may sign a long-term deal to supply coal to the Opole plant and may also consider investment in the project, PGE said in an e-mailed statement later today.

Click here to read the full Bloomberg report.