Energa to seek damages for failed Ostroleka C project

Energa S A

14/11/2024 16:17

Nov 14 (Reuters) - Energa  ENGP.WA , a unit of Polish
refiner, Orlen  PKN.WA , is seeking to pursue compensation
claims for damage caused by persons involved in the decision
related to the construction of a coal-fired unit, the 1,000 MW
Ostroleka C project, the company said on Thursday.
    The decision was made by the management board of Energa
after analysing the opinions from external law firms, which
indicate the project caused the company significant financial
damage.
    Energa will request that the general meeting adopts
appropriate resolutions so the company has the right to take, in
court or out of court, all steps to pursue its claims.
    In 2020, Elektrownia Ostroleka sp. z o.o. informed that it 
booked write-downs on the company's fixed assets to the amount
of 1.03 billion zlotys.
   Initiated by Energa in 2009 and revived in 2016, the project
faced financial issues and criticism over potential misuse of
public funds. The fuel source was reconsidered to be gas,
instead of coal, following Orlen's takeover of Energa in 2020
due to increasing carbon permit prices. This has led to
financial ramifications and ongoing disputes.
    

 (Reporting by Anna Banacka and Rafal W. Nowak)
 ((anna.banacka@thomsonreuters.com; +48 58 769 65 65;))