French technology constructor company Technip reports that it won a contract to build a 5 tons/hour capacity hydrogen plant for PKN Orlen in Plock. The facility, which represents an overall investment of approximately EUR 50m is scheduled to be operational in 1Q09.
Our view: The hydrogen is used in the refinery to upgrade products and remove sulfur. Last January, in the lack of natural has and sufficient hydrogen capacity PKN had significant problems as to produce fuels in compliance with the European norms. With this investment PKN tries to lower dependence on outside hydrogen suppliers. While we do not see the return on this investment as outstanding, it definitely lowers operational risk of the Plock refinery. Overall, we consider the news as slightly positive.