Ško-Energo, which supplies energy to the Mladá Boleslav carmaker, is now waiting for the project to be approved by its partners. In addition to Škoda Auto, among them are the Volkswagen Group or the energy companies E.ON and ČEZ Esco. “For the final decision, we need to have a completed economic balance sheet, which will also depend on the possibility of drawing subsidies. We want to use the Heat program from the Modernization Fund, “project manager Milan Poddaný told the E15 daily.
He did not state how much the company counts. However, the available information suggests that the Heat program can cover 45 to 80 percent of the total investment costs. “We are working on applications for subsidies from the Modernization Fund and we are selecting the general designer of the building,” he added, adding that the construction should start in 2023.
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The Mladá Boleslav heating plant will have a completely new boiler and the other two will undergo modernization. All three will then burn only biomass, which in the current fuel mix accounted for 30 percent. On the contrary, the coal that the heating plant now burns from 70 percent will end up as fuel. The heating plant will thus reduce annual carbon dioxide emissions by 360 thousand tons per thousand units, which will be generated by burning gas while covering peak power peaks.
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The company preferred biomass as a fuel because, according to the valid legislation, it has zero carbon dioxide emissions, unlike gas. “The transition to biomass instead of gas is more radical. The advantage is that this fuel has a zero emission factor, thanks to which the heating plant will not need emission permits. In addition, it has already partially burned biomass, so it has built relationships with business partners, “says Jiří Gavor, an analyst at ENA. The disadvantage is that the biomass may not be enough for all players in the collection distance and there is a risk that they will be forced to overpay the competition.
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Energy companies are accelerating their exit from coal due to the European Commission’s increasingly stringent climate targets, which are making emission allowances more expensive. To this is added the ESG (Environmental, Social and Governance) rating, which quantifies the company’s risks to the environment, its social responsibility and the quality of management, and which may ultimately make loans and insurance more expensive for insufficiently “green companies”.
All large domestic energy groups ČEZ, EPH, Sokolovská uhelná and Veolia have announced a withdrawal from coal. On the contrary, the energy group Sev.en is counting on coal in the longer term. Although it is planning to invest in renewable sources, it is also preparing a billion-dollar modernization of the Počerady coal-fired power plant.
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