Puławy, October 10th 2009

Press Release

ZAP Receive Support to Reduce SO2 Emissions

Zakłady Azotowe Puławy S.A. and the National Fund for Environmental Protection and Water Management entered into an agreement on subsiding one of ZAP’s key environmental investment projects, namely the construction of the wet flue gas desulphurisation unit using ammonia. The agreement was executed as part of the Infrastructure and Environment Operating Programme for 2007-2013. The subsidy amounts to PLN 20m, which is 11.11% of qualified spending on the project. The planned overall cost of the project is almost PLN 224m.

The installation is expected to benefit the environment by reducing the SO2 annual emissions by 8,589 Mg and maintaining a specified content of SO2 in the CHP stack (below 400 mg/Nm3). The construction of the wet flue gas desulphurisation unit using ammonia will not only reduce the SO2 emissions from the CHP plant to 200 mg/Nm3, but will also increase the Company’s fertiliser production potential with respect to ammonium sulfate. In this way, in addition to benefits related to avoiding fines in the future or using more expensive coal (with lower sulphur content), ZAP will increase its potential with respect to ammonium sulfate production.

The investment is planned to be completed in 35 months. The unit will be located on the CHP’s plot. The investment represents another area of the Company’s environmental efforts, whose completion will substantially reduce ZAP’s environmental impact.