Puławy, 7 August 2006

Agreement on Collection of Ashes from the CHP Plant

Zakłady Azotowe Puławy S.A. concluded an agreement with ENERGO Mineral Sp. z o.o. concerning the construction of a storage and loading unit for the fly ash produced during coal combustion by Centrum Energetyczne ZAP.
Under the agreement, the Katowice-based company will build at its own expense a container with the capacity of 2,000 m3, loading facilities, compressed air pipelines, and all ancillary equipment necessary to launch the unit. The investment will cost EUR 1.3m. The term of the agreement is ten years.

 The agreement is doubly important to us. Firstly, it will allow us to utilise the ashes without the need for costly storage. Secondly, it will help solve the recurring problem of dusting, which in the past caused considerable nuisance to the surrounding areas, said Ms Małgorzata Iwanejko, President of the Management Board of Zakłady Azotowe Puławy S.A.
 
The unit launch has been scheduled for May 2007.

During the first year of the unit operation we will collect at least 60 thousand tonnes of ash, estimates Ulrich Mehls, President of ENERGO Mineral.

The final objective behind the project is to enable ENERGO Mineral to collect and utilise virtually all dry ash generated by Zakłady Azotowe Puławy S.A., which will subsequently be put to a variety of uses in the building industry. Zakłady Azotowe Puławy S.A. burns 700 thousand tonnes of coal annually, thus producing also 150 thousand tonnes of ash.

 ENERGO Mineral Sp. z o.o. of Katowice is wholly-owned by STEAG Entsorgungs-GmbH, member of the STEAG AG concern, with registered office in Essen (Germany). STEAG AG is part of the RAG concern, engaged primarily in specialty and basic chemistry (Degussa) as well as in the power industry.