Energy generation and consumption

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After purchasing the raw material, the cost of energy is the second highest variable cost in the refining industry. Therefore, continuous optimization of energy costs of crude oil processing and improvement of energy efficiency of production facilities is an important aspect of managing refinery operations. Due to market and environmental factors, optimization of energy consumption is becoming increasingly important. Therefore, a specially established unit within the organization -Energy Efficiency Department, together with the production plants and process engineers, focus primarily on searching for and implementing measures to improve the energy efficiency of the production installations, which also translates into thepossibility of obtaining white certificates, i.e. energy efficiency certificates issued by the Energy Regulatory Office. Thismeasure reduces environmental costs incurred by the refinery.

In 2021, 23 optimizations were identified and implemented. The effect of implementing 22 optimizations from 2020 was maintained. It is also worth noting that once again the LOTOS Group refinery was ranked among the most energy efficient refineries in the region according to the Solomon Associates ranking. This ranking lists refineries around the world and evaluates their performance in many aspects such as technology, and costs of energy and operations.

The total energy consumption of the LOTOS Group in 2021 was 9 042 362,72 MWh.

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Thanks to the optimizations implemented at the LOTOS Group refinery installations, energy consumption of almost all energy carriers has been reduced (reduction calculated in relation to the base state – before optimization).

Energy reductions achieved directly as a result of consumption reduction and energy efficiency initiatives in 2021 [MWh] 42,952

Source: LOTOS Asfalt Sp. z o.o.

Data on energy generation and consumption are reported only at the consolidated level, for the entire LOTOS Group.

Energy consumption reductions are for steam, electricity and process furnace fuel. The energy consumption reductions are a direct result of implementing 16 refinery optimization measures in 2021. Additionally, the effects of optimizations implemented in 2020 reported in the prior year were maintained.

Among the activities completed by the LOTOS Group in 2021, further optimization of steam consumption accounts for a large share.

Eight of the 22 measures involved reducing steam demand for heating purposes (maintaining constant temperatures of agents and media) and processes (maintaining proper operation and flow of physical and chemical processes). One of the producers of the steam that powers the refinery's facilities is a combined heat and power plant. The reduction in steam consumption also translates into a reduction in fuel demand in the boilers of the cogeneration unit. Electricity is also an important medium in the optimization process. In this case, 9 of 22 measures involved restricting the operation of electrical equipment, mainly pumps and compressors.

The identified areas for improvement and implemented changes are continuously monitored and verified by the Energy Efficiency Department, which identifies significant potential for optimization of energy utilities. Care for environmental protection and reduction of utilities and equipment operating costs is achieved by searching for, testing and implementing optimization solutions.

In 2021, the organization received white certificates in the amount of 1,626 toe, from the post-completion measure -announcement under Article 15 of the Law on Energy Efficiency (Journal of Laws 2021, Item 468) reported to the ERO.

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Energy consumption within the organization

Total energy consumption from non-renewable sources (from the purchased sources and own sources – generated within the organization’s own operations) and types of fuels used

Consumption (MWh) 2020 2021
Coal 73,117.80 78,125.36
Natural gas 2,461,762.77 2,566,088.70
Diesel oil 28,084.56 33,293.33
Heating gas 4,129,895.06 3,395,573.05
Tail gas, special 1,106,442.82 958,011.35
Light fuel oil 16,472.05 72,886.11
LPG 8,131.08 9,523.33
Diesel 55,572.45 55,518.78
Refinery fuel oil 158,172.22
Gasoline 2,954.01 2,986.57
Total energy consumption 7,882,432 7,357,278.81

Source: LOTOS Asfalt Sp. z o.o.

MWh 2020 2021
Electricity 1,825,485.42 1,743,937.66
Thermal energy 27,345.48 24,673.04
Total consumption 1,852,830.9 1,768,610.70

Source: LOTOS Asfalt Sp. z o.o.

MWh 2020 2021
Electricity 21,537.57 21,818.41
Steam 34,588.18 32,142.22
Heat (in water) 28,992.66 29,566.15
Total 85,118.42 83,526.79

Source: LOTOS Asfalt Sp. z o.o.

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Energy intensity ratios

The decrease in the energy intensity indicators was influenced in 2021 by the half-overhaul, which included 10+ Program installations, i.e. relatively new part of the refinery. Despite the cost optimization involving withdrawal of natural gas from the 250 and 270 hydrogen installations as of August 2021 (due to high natural gas prices) it was possible to reduce primary energy demand by 10%.

Grupa LOTOS 2020 2021
Primary energy consumption per ton of crude oil processed in MWh/t 0.90 0.84
Primary energy consumption per ton of product in MWh/t 1.18 1.11

Source: LOTOS Asfalt Sp. z o.o.

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