Energy Policy of KGHM Polska Miedź S.A.

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The primary objective of KGHM Polska Miedź S.A. in respect to energy management, as well as with respect to pro-climate activity, is to engage in rational energy management while ensuring the security of energy supply to facilities and installations within the Company’s production line. It was and it is implemented on the basis of best European and international standards, mainly on the basis of the ISO 50001 standard. The process of implementing the international standard of energy utility management in accordance with the ISO 50001 standard began with the adoption of the Energy Policy of KGHM Polska Miedź S.A. by the President of the Management Board on 28 November 2016. At present, the second edition of the policy, approved on 28 February 2019, is in effect.

It is the ambition of KGHM Polska Miedź S.A. to continually grow the share of renewable energy sources and in-house energy production in covering our energy demand. KGHM has its own low-emission generation sources powered by gas.

Currently KGHM Polska Miedź S.A. has two GasSteam Blocks in Polkowice and in Głogów with the capacity of 42 MWe each and a Surface-based Central Air Conditioning Station located next to shaft R-XI in Grodowiec, which has natural gas powered engines with the total capacity of 8.8 MWe. The Company is in the process of advancing further investments to increase electricity generation, with nitrogen-rich natural gas used as fuel. In 2022, two more natural gas powered engines with a total capacity of 8.8 MWe will be commissioned at the Surface based Central Air Conditioning Station at the GG-1 shaft in Kwielice, and by 2030 two more such Stations will be built (with a total capacity of 17.6 MWe).

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KGHM will build the first small modular reactors (SMR) in Poland.

In collaboration with NuScale Power, the supplier of the technology, KGHM plans to build the first power plant by 2029. In 2021 KGHM Polska Miedź S.A. established the Nuclear Energy Department and in February 2022 a contract was signed with NuScale to commence the work on implementing the technology in Poland.

As part of this contract KGHM and NuScale will implement SMR technology in Poland. The first power plant will be built by 2029. This will allow Poland to avoid some 8 million tonnes of CO₂ emissions a year. Clean energy will power the copper company’s production divisions. This project is modular, and that means that the size of the project can be grown seamlessly.

Building small modular reactors by 2029 is directly associated with the KGHM Polska Miedź Climate Policy and the Company’s new strategic direction – energy.

This signed commercial contract is an important milestone towards commercializing and developing clean, reliable and affordable energy.

The modular nuclear power plant designed by NuScale Power with a light-water reactor supplies energy to generate electrical energy and heat, for desalination, produce hydrogen and for other applications related to process heat. This landmark solution is the only technology among small modular reactors to be approved by the U.S. Nuclear Regulatory Commission. KGHM, the leader in copper and silver production will be the first entity to implement SMRs in Poland.

The Company is also developing renewable energy sources. Currently, projects of photovoltaic power plants are carried out in the areas owned by KGHM, i.e. at the Głogów Copper Smelter and Refinery, at the Cedynia Copper Wire Rod plant and the Obora Sandpit area. Other projects are also being prepared on KGHM’s own land. The Company is also active on the M&A market for renewable energy sources and is engaged in several due diligence and valuation processes for assets that are available for purchase. KGHM has also taken steps leading to the construction of offshore wind farms.

The Energy Policy stipulates the most important principles of energy management in KGHM Polska Miedź S.A. By observing these principles, the Company’s management undertakes to:

  • ensure resources necessary to achieve the planned energy objectives and outcomes,
  • operate in accordance with the law and other energy requirements relating to energy use,
  • create desirable attitudes, build awareness and continually improve the skills of the Company’s employees and partners performing tasks for KGHM Polska Miedź S.A.,
  • prevent waste in the area of energy consumption,
  • cooperate with partners and suppliers in the procurement of material goods and services having regard to energy efficiency as an important selection criterion.

The principles adopted in the Energy Policy of KGHM Polska Miedź S.A. are complied with by all employees of the Company, as well as other persons and entities performing tasks needed for its operation. As a result of the Energy Policy, the Company pursues activities designed to manage the energy used by KGHM rationally and in compliance with the law, including:

  • specification of procedures for the investment and procurement process,
  • energy overhauls in KGHM Divisions and the Head Office, performed in accordance with the approved methodology,
  • actions to achieve the approved energy objectives,
  • implementation of the regulations: Legal and other requirements in the field of power generation and evaluation of their conformity for the purposes of the Energy Management System at KGHM Polska Miedź S.A.
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Energy consumption in 2021 in KGHM Polska Miedź S.A. [GJ]

 2021
KGHM Polska Miedź S.A.
Consumed non-renewable fuel 7,811,422
Consumed renewable fuel 0
Electricity, heating, cooling and steam purchased for consumption 10,403,786
Electricity produced in-house, heating, cooling and steam that are not consumed 3,883,984
Sales of electricity, heating, cooling and steam 2,952,244
Total energy consumption within the organization 19,146,948
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Energy consumption by the Organization

2021
KGHM S.A. Group KGHM Polska Miedź S.A.
Electricity consumption [kWH] 3,584,717,074 3,014,585,000
Consumption of thermal, cooling energy and steam [GJ] 4,175,066 3,435,264
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