Directions for advancing innovations as well as research and development activities

The expansion directions adopted and implemented at TAURON Group are a response to the current challenges of the power sector, including the tightening climate and environmental policies of the EU in a changing macroeconomic environment. The priority is to decarbonize TAURON Group and strive to achieve climate neutrality while maintaining a stable financial position.

TAURON Group’s activities are focused on continuing the Green Turn while participating in the government solutions for the coal mining and coal fired energy.

Implementation of the strategic investment (CAPEX) projects

Key strategic investment (CAPEX) projects under way

The below table presents the activities carried out by TAURON Capital Group in 2022 and by the date of drawing up this report in connection with the implementation of the key strategic investment (CAPEX) projects.

Key strategic investment (CAPEX) projects’ work progress in 2022 and by the date of drawing up this report

Investment project Investment project’s work progress
1. Construction of 910 MW supercritical parameters power generation unit in Jaworzno

Contractor: Consortium of RAFAKO S.A. and MOSTOSTAL WARSZAWA S.A. (RAFAKO – Mostostal Warszawa)

The unit started operation on November 13, 2020

Planned end of transition period depends on the results of the mediation procedure

Work progress: 99%

Expenditures incurred: PLN 6 128.37 million

(the amount increased by, among other things, training, fast wearing parts)

Due to start of the unit’s operation, President of Energy Regulatory Office issued permission to produce energy for the period from November 20, 2020 to December 31, 2030.

After fire incident that occurred on June 11, 2021 the unit was in emergency shutdown. As a result of inspections carried out during the shutdown, it turned out that works should be performed at several elements of the unit.

On April 14, 2022, following the fixing of the defects and malfunctions, the 910 MW unit was re-synchronized with the National Power System (Krajowy System Elektroenergetyczny).

From August 6 to September 2, 2022, the unit was placed in an emergency shutdown, during which the additional work was carried out to repair the boiler funnel.

The ongoing operation of the unit is currently underway. The occurring emergency shutdowns of the unit are caused, among other things, by the failures occurring in the ash removal system and the mill systems. On the other hand, the temporary power losses during the operation of the unit are caused by the works related to the unit’s tune-up and the optimization of equipment operation. Due to the fact that the work scheduled to be performed during the transition period had not been completed by the deadline provided for in the contract (i.e. October 30, 2022,), the tune-up, testing and optimization phase has not, up to now, been carried out after the restart of the unit,

The parties are taking part in a mediation process before the Court of Arbitration at the General Counsel of the Republic of Poland, covering all of the issues related to the Contract.

The agreement on conducting the mediation process between the Nowe Jaworzno Grupa TAURON subsidiary and the General Contractor of the investment project with the participation of the General Counsel of the Republic of Poland was signed on August 5, 2022.

As of the date of drawing up this information, the mediation process had not been completed.

2. Low Emission Elimination Program (PLNE – Program Likwidacji Niskiej Emisji) on the territory of the Silesia and Dąbrowa conurbation

Contractor: Contractors are being selected to carry out specific work (project) stages

Planned project completion date: Q4 2023

Work progress: 52 %

Expenditures incurred: PLN 45.9 million

The PLNE program is carried out on the territory of the following metropolitan areas: Będzin, Chorzów, Czeladź, Dąbrowa Górnicza, Katowice, Siemianowice Śląskie, Sosnowiec and Świętochłowice.

In the third quarter of 2022, the works related to installing the network connections had been continued under the network connection agreements concluded. Cumulatively, from the beginning of the Program’s implementation, the agreements have been concluded for the total volume of 23.05 MWt – the program’s target was achieved in terms of the contracted capacity (22 MWt).

The construction part of the task, i.e. the physical connections of the heat consumers, is currently being implemented.

3. TAURON Internet (POPC) – implementation of the project in the selected areas awarded (7 projects on the territory of the following areas: Rybnik, Katowice-Tychy, Oświęcim, Kraków, Wałbrzych A, Wałbrzych B, Sosnowiec)

Contractor: Atem Polska sp. z o.o. (Katowice-Tychy), MZUM sp. z o.o. (Sosnowiec), Atem Polska sp. z o.o. (Wałbrzych A), Mediamo Sp. z o.o. (Oświęcim), MX3 sp. z o.o. (Rybnik), MZUM sp. z o.o. (Wałbrzych B), ZICOM sp. z o.o. (Kraków-Tarnów)

Project completion date: December 2022

Work progress: 100%

Expenditures incurred: PLN 268.4 million

The Digital Poland Operational Program (POPC – Program Operacyjny Polska Cyfrowa) involves deploying an infrastructure to enable high speed internet connections for households (min 30 MB/s). The final product of the project will be the provision of the wholesale services enabling connecting of the end users by the retail service operators.

All of the contractors had been conducting the works related to the deployment of the fiber optic network in the third quarter of 2022. The works related to switching over of the education facilities from the temporary subscriber lines to the optical fiber were completed. The deployment of the fiber optic network in the areas covered by the project is currently continued.

As of the end of 2022, all the works in all areas, i.e. the Katowice, Tychy, Kraków, Tarnów, Sosnowiec, Rybnik and Oświęcim areas as well as in Wałbrzych, had been completed.

4. Construction of the 30 MW Piotrków wind farm.

Contractor: Consortium of MEGA S.A. and P&Q sp. z o.o.

Project completion date: September 30, 2022

Work progress: 100%

Expenditures incurred: PLN 230.2 million

The construction of the wind farm had been completed in the third quarter of 2022. The wind farm was handed over for operation (commissioned) on September 30, 2022.
5. Construction of the 6 MW Majewo wind farm.

Contractor: HIUB Wróbel sp. z o.o.

Project completion date: September 29, 2022

Work progress: 100%

Expenditures incurred: PLN 47.3 million

The construction of the wind farm had been completed in the third quarter of 2022. The wind farm was handed over for operation (commissioned) on September 29, 2022.
6. PV Choszczno II – construction of the photovoltaic installations with a total capacity of 8 MW

Contractor: MGM Projekt sp. z o.o.

Project completion date: July 31, 2022

Work progress: 100%

Expenditures incurred: PLN 19.9 million

The farm was handed over for operation (commissioned) on July 31, 2022. After the merger with the Choszczno I PV farm (6 MW), the total capacity of the farm reached 14 MWp.
7. Construction of the 58.5 MW Mierzyn wind farm.

Contractor: Consortium EL PROFESSIONAL Sp. z o.o.

Planned project completion date: Q4 2024

Work progress: 16%

Expenditures incurred: PLN 78.06 million

In the third quarter of 2022, the construction of the wind farm had been commenced, the technical and detailed engineering documentation had been agreed upon and the project site had been surveyed.

In the fourth quarter of 2022, the construction works at the construction site had been commenced.

8. Construction of the 19.6 MW Nowa Brzeźnica wind farm

Contractor: E-Wind S.A.

Planned project completion date: Q2 2025

Work progress: 6%

Expenditures incurred: PLN 17.7 million

In late Q3 / early Q4 2022, the corporate approvals for the investment project’s implementation had been obtained and the key contracts for the project’s implementation had been signed. The construction site had been handed over to the Contractor on December 19, 2022.
9. Construction of the 33 MW Gamów wind farm

Contractor: E-Wind S.A.

Planned project completion date: Q4 2024

Work progress: 8%

Expenditures incurred: PLN 29.3 million

In the fourth quarter 2022, the corporate approvals for the investment project’s implementation had been obtained.

The notice to proceed was issued to the Contractor on December 27, 2022.

10. Construction of the 30 MW Warblewo wind farm

Contractor: E-Wind S.A.

Planned project completion date: Q4 2024

Work progress: 6%

Expenditures incurred: PLN 31.2 million

In the fourth quarter 2022, the corporate approvals for the investment project’s implementation had been obtained the notice to proceed had been issued to the Contractor.

The development of inter-industry technical and engineering documentation, as well as the mobilization of construction facilities is under way.

11. Construction of the 140 MWt gas fired boiler at ZW Katowice (Katowice Generation Plant) for the district heating market needs

Contractor: Mostostal Warszawa S.A.

Planned project completion date:
Q2 2024

Work progress: 52%

Expenditures incurred: PLN 27.9 million

In 2022, the works related to the laying down of the foundations for the boiler house and the electrical bay had been completed.

The prefabrication works related to the steel structure, stack and the boiler heating surfaces are under way.

12. Construction of the peaking and backup boiler house at ZW Bielsko Biała EC 2 (Bielsko Biała Generation Plant Combined Heat and Power Plant 2)

Contractor: Erbud Industry sp. z o.o.

Planned project completion date: Q3 2023

Work progress: 60%

Expenditures incurred: PLN 29.4 million

The construction works and the design works related to the gas network connection had been under way in 2022. The decision on the environmental conditions had been obtained. The roofs on the boiler house building and the electrical building had been completed. The construction of the fuel oil tanks had been completed.
13. 37 MW Mysłowice PV farm part II construction

Contractor: TAURON Serwis

Planned project completion date: Q3, 2023

Work progress: 38%

Expenditures incurred: PLN 56 million

The agreement with TAURON Serwis for the construction of the farm had been concluded in 2022. The works related to the construction of the fencing and the internal roads had been carried out and completed in 2022. Currently, the works related to the piling of the support structure for the PV panels and the installation of the panels are being carried out.

As of the date of drawing up this report, 99% of the support structure had been built and more than 76% of the photovoltaic panels had been installed. The works have begun on the construction of the PV Farm Substation (grid connection point) and excavation work for the electrical installations. The inverters have been delivered to the construction site.

14. Proszówek PV farm construction (stage I 45.6 MW)

Contractor: TAURON Zielona Energia

Planned project completion date: Q4, 2023

Work progress: 1%

Expenditures incurred: PLN 11.4 million

In late Q3 / early Q4 2022, the corporate approvals for the investment project’s implementation had been obtained. The construction site had been handed over at the beginning of January 2023, and the construction works related to the PV farm were commenced in March 2023. The technical and detailed engineering documentation is being agreed upon.

Budowa szybu „Grzegorz”

In 2022, TAURON Group was also implementing the project Construction of the ”Grzegorz” shaft, including the infrastructure (above the ground and underground) and the accompanying longwall faces (headings), which, due to the transfer of the ownership of the shares of TAURON Wydobycie to the State Treasury that took place on December 31, 2022, is currently being implemented outside TAURON Group’s structure.

The following activities had been carried out in 2022:

  1. The mediation proceedings with the General Contractor, with the participation of the General Counsel of the Republic of Poland, had been completed in April 2022. A draft settlement agreement had been agreed between the parties. On December 1, 2022, the court approved the wording of the mediation settlement agreement. The court’s decision became legally binding on December 21, and on December 22, 2022, the annexes were signed with the General Contractor and the Design Engineer with respect to further implementation of the project,
  2. The General Contractor resumed the works related to the shaft sinking (deepening) from the depth of 80.5 m, down to the depth of 591.2 m, in June 2022.

As of December 31, 2022, the depth of the shaft was 196 meters, and the headings excavation works were continued in accordance with the schedule. The work progress on the investment project stood at 42%, and the capital expenditures incurred in connection with the investment project clocked in at PLN 329.9 million.

Other investment projects in the RES line of business

As part of the investment projects in the renewable energy sources (RES) line of business, the program of building the photovoltaic (PV) farms on TAURON Capital Group’s land that was not utilized for business purposes (TAURON PV Program) was continued in 2022. The Program provides for the construction of the photovoltaic (PV) farms at several locations, with the total capacity of up to 150 MWp.

The works include obtaining the required administrative permits and decisions, with the final decisions on the projects’ implementation to be made in the event there is a business case. Work is also under way on changing the scope of the TAURON PV Program in connection with the possibility of extending the program to cover the new sites.

GTAURON Capital Group is looking for the opportunities to acquire advanced wind farm projects ready for the construction and the operating onshore wind farm assets on the market. As part of such efforts, the internal analyses and due diligence studies of further potential acquisition projects had been carried out in cooperation with the developers in 2022.

In October of 2021 TAURON and PGE concluded a letter of intent with respect to undertaking the bilateral cooperation in the development of the offshore wind energy in Poland, and then signed a contingent agreement for the sale of the shares in a project (SPV) company whose task would be to obtain siting permits for the construction of the offshore farms in the Polish Exclusive Economic Zone of the Baltic Sea. The clearance of the Chairman of the Office of Competition and Consumer Protection (Urzędu Ochrony Konkurencji i Konsumentów (UOKiK)) had been a condition precedent for the preliminary agreement, and it was obtained in January of 2022. On September 28, 2022, TAURON (as the buyer) and PGE (as the seller) concluded an agreement disposing of the sale of the shares in the above mentioned special purpose vehicle (SPV) company, i.e. PGE Baltica 4. The detailed information related to the above topic is provided in section 1.3 of this report. On January 9, 2023, the Minister of Infrastructure disclosed the information that in the adjudication proceeding for the issuance of a permit for the construction or use of the artificial islands, structures and devices in the area located on Słupsk Shoal (Ławica Słupska), designated as 43.E.1, for the construction of an offshore wind farm, the company PGE Baltica 4 was awarded the highest number of points.

In January and February of 2022, the Minister of Infrastructure disclosed the information on the possibility of submitting further applications for issuing of the permits for the construction or use of the artificial islands, structures and devices in the Polish maritime areas. In April 2022, the applications were submitted by TAURON Group’s project special purpose vehicle (SPV) companies: En-Energia I sp. z o.o., En-Energia II sp. z o.o., En-Energia III sp. z o.o. and En-Energia IV sp. z o.o., to obtain the above mentioned permits in the areas located in the vicinity of Ławica Odrzana, designated as 14.E.1, 14.E.2, 14.E.3, 14.E.4.

In September 2016, in accordance with  TAURON Group’s Strategy for the years 2016-2025, as part of the priority of ensuring  TAURON Capital Group’s financial stability, the 413 MWe CCGT unit construction project including a heat production unit at TAURON Wytwarzanie Łagisza Power Plant Branch in Będzin (TAURON Wytwarzanie Oddział Elektrownia Łagisza w Będzinie) was halted due to the loss of its business case. On March 22, 2022, the Management Board of the Company approved the purchase order award procedure to be conducted by TAURON Wytwarzanie, the planned effect of which was supposed to be the obtaining of the bids from the potential contractors. The procuring of the bids was supposed to enable – after taking into account the other premises of the investment process, including the precondition of the favorable outcome of the capacity market auction scheduled for December 2022, as well as the market conditions mentioned below – the completion of the analyses of the project in terms of the long term profitability thereof. As a result of the organized procedure, no bids have been received by the company. The lack of the bids for the construction of the unit makes it impossible to participate in the capacity market auction in 2022, therefore further corporate decisions regarding the continuation of the project, a change of the scope thereof or a resignation from the implementation thereof are required. The decisions will be made taking into account the market conditions, including the demand for electricity and heat and, inter alia, the situation with respect to the terms of a long term contract for the supply of the gas fuel and the availability thereof, and such conditions should guarantee the project the expected level of profitability and the objective assessment of the possibility of completing the implementation of the project. As of the date of drawing up this information, the analytical works are under way on further project implementation scenarios.

Capital expenditures (CAPEX)

TAURON Capital Group’s capital expenditures came in at PLN 3 962 million in 2022 and they were higher by 35% than the investment outlays incurred in 2021, when they stood at PLN 2 932 million (excluding the equity investments). This is, first and foremost, due to the increase of the capital spending in the RES Segment, the Generation Segment, the Mining Segment, the Other Operations Segment and the Distribution Segment.

The below table presents the selected, highest by value, capital expenditures incurred by TAURON Capital Group’s Lines of Business in 2022.

The highest by value, capital expenditures incurred by TAURON Capital Group’s Lines of Business in 2022

Item Capital expenditures (PLN m)
Distribution
1. Installation of the new grid connections 1 138
2. Existing grid assets’ upgrades (refurbishments) and replacements 852
Generation
3. CAPEX on replacements and upgrades (refurbishments), as well as components at TAURON Wytwarzanie 129
4. Construction of a 910 MWe super critical parameters generation unit in Jaworzno 56
5. Connecting of the new facilities to the grid 30
6. Construction of the peaking and back-up boiler houses at ZW Bielsko 29
7. Construction of the gas fired boiler house at ZWK with a capacity of 140 MWt 23
8. Investment projects related to the development (expansion) and maintenance of the district heating networks 17
9. Low Emission Elimination Program conducted by TC 17
RES
10. Construction of the 30 MW Piotrków wind farm 162
11. Construction of the 58.5 MW Mierzyn wind farm 78
12. Construction of the 37 MW Mysłowice photovoltaic farm 78
13. Construction of the 6 MW Majewo wind farm 35
14. Construction of the 30 MW Gamów wind farm 29
15. Refurbishment of the hydroelectric power plants 20
16. Construction of the 19.6 MW Nowa Brzeźnica wind farm 18
17. Construction of the 45.6 MW Proszówek stage I photovoltaic farm 11
18. Construction of the 30 MW Warblewo wind farm 8
19. Construction of the 8 MW Choszczno II photovoltaic farm 3
Mining
20. Preparation of the future production 337
21. Refurbishment and replacement tasks at the Coal Mines (ZG) 130
22. Construction of the “Grzegorz” shaft at the Sobieski Coal Mine (ZG Sobieski) 44
Supply and Other Operations
23. IT related investment projects at Tauron Obsługa Klienta (Tauron Customer Service) 291
24. Construction of the broadband Internet access network as part of the Digital Poland Operational Program III (Program Operacyjny Polska Cyfrowa III – POPC III) project and CUB 78
25. Maintenance and development of the street lighting 68

Evaluation of the capability to complete the intended investment projects

TAURON Capital Group’s strategic investment projects and the financing thereof are centrally managed at the Company level.

Based on the completed analyses with respect to the planned investment outlays and the resources the Company’s Management Board assesses that TAURON Capital Group is able to finance the current and future intended investment projects included in the Strategy using the funds generated from the operating activities and by obtaining debt financing, both the corporate as well as the project financing.

The Company is pursuing a policy of diversifying financing instruments and strives to secure the financing and maintain the ability of TAURON Capital Group's subsidiaries to meet both the current as well as the future obligations in the short and the long term, including the ones related to the capex plans. Steps are taken to acquire the new sources of financing, resulting in the concluding, in 2022, of the syndicated loan agreement worth PLN 4 000 million.


Major achievements in in the field of research, development and innovation

The research and development as well as innovations related activities (R+D+I), the importance of which is highlighted in the new Strategy, are reflected in the Strategic Research Agenda (SAB), adopted in 2018 and updated in 2022.

As part of its activities in the Research and Innovation Area, TAURON Capital Group is applying portfolio based management of the research and development projects, ensuring a comprehensive approach to the implementation of the tasks in line with the innovative solutions indicated in the Strategy in support of TAURON Group’s transition towards climate neutrality.

SAB is a document that describes in a precise manner the directions of innovations pursued and it is a detailed extension of the Strategy. The document includes four research portfolios:

  1. Customer and His / Her Needs,
  2. Smart distribution,
  3. Green energy,
  4. Sustainable heat.

Each portfolio sets the directions for the research and development projects. As part of the directions the problem areas have been defined for the selected detailed research areas that are important from the point of view of TAURON Group’s development plans. Such a structure of the SAB supports the selection of specific projects and the rejection of others, as well as allows for an optimal allocation of the financial resources. This way, TAURON Capital Group’s research and development as well as innovations related activities are carried out and developed based on the complete and detailed assumptions of the strategic nature – with the clearly defined goals and ambitions.

 

PLN 40 million was allocated to the functioning of the R+D+I area in 2022. 6 projects (including 1 start-up) were launched in various lines of business.

As part of four portfolios of the Research and Innovations Area, 24 projects with the total value of more than PLN 85 million were carried out. For the implementation of some of these projects TAURON Capital Group obtained funding from the external sources in the total amount of almost PLN 31 million.

The below table presents the selected R&D projects carried out in 2022 by TAURON Capital Group’s subsidiaries, co-financed from the external sources.

Selected R&D projects carried out in 2022 by TAURON Capital Group’s subsidiaries, co-financed from the external sources

Projects / programs / tasks Co-financing source
1. Development and testing of an adaptive electricity storage system based on the second life of batteries from electric vehicles. National Research and Development Center (Narodowe Centrum Badań i Rozwoju – NCBR)
 2. Development of the industrial design of the carbonate fuel cells and ceramic electrolyzers enabling integration with the power-to-gas installations.
3. Flexibility of the existing power generation units with limited capital expenditures.
4. Development and demonstration of a computer system to be used for the operation control as well as availability and reliability management of industrial infrastructure based on artificial intelligence algorithms.
5. Distributed energy solutions model 2.0 – self-balancing power grid areas..
6. Development of an innovative system for effective monitoring and supporting of the protection devices compliant with the DMS (Distribution Management System). assumptions
7. Development of the hybrid system for reducing the emission of acid components and fly ash from the flue gases.
8. Development of advanced technology for monitoring and predictive analysis of the technical condition of the boiler in order to increase the reliability of the boiler unit
9. Impact of the extreme weather conditions on the mining operations. European Union’s Coal and Steel Research Fund
10. Assessment of the environmental management and the measures aimed at the protection and repair thereof using the tools to analyze the state of the ecosystem.
11. Energy storage systems for the DSO needs. Operational Program Infrastructure and Environment

As part of the project, a pilot installation of a power microgrid was prepared, with the ability to independently cover the local demand for electricity. The pilot installation is composed of the renewable generation sources, energy storage facility, gas engine and the management system, along with the advanced network automation solution. In 2022, the assumptions were developed for a micro-grid offering for TAURON Capital Group’s customers. In addition, the tests of the built pilot installation were carried out, involving a verification of the micro-grid in terms of its functionality, security, failures and communications between the various components of the installation.

The scope of the project covers high efficiency electrolysis of water vapor supported by fuel cells, in order to increase the efficiency of the green hydrogen storage in the form of synthetic natural gas, with the use of CO2 captured from the power generating units’ flue gas. The technology is a promising solution for storing electricity from the non-controllable (intermittent) energy sources – wind farms (in particular, the planned off-shore wind farms) or photovoltaic cells. The testing (research) campaign based on the pilot installation completed at the Łaziska Power Plant was conducted in 2022.

The goal of the project is to reuse the lithium-ion cells previously used in the urban transportation vehicles. As part of the project, the laboratory tests of the battery packs were carried out in 2022 in order to assess their condition and suitability for the stationary electricity storage facilities. In view of the satisfactory results of the tests, the construction of a prototype energy storage facility was commenced. In 2023, it is planned to test the prototype storage unit in the real life conditions.

The project is related to the development and demonstration of a computer system for controlling the operating parameters of the critical industrial infrastructure devices, as well as the construction of the models allowing for the dynamic management of their availability (dispatchability) and reliability. The solutions developed as part of the project, in line with the assumptions of the so-called Industry 4.0, will allow for, among others, predicting potential failures within the critical industrial infrastructure devices with an appropriate lead time (in advance). In 2022, the tests aimed at an empirical verification of the correctness of the models developed and the comprehensive predictive diagnostics system were conducted. In this regard, among other things, an electrical module, including the diagnostics of the transformer of the 460 MW unit at the Łagisza Power Plant, was installed and tested.

The main goal of the Home Energy Management System (HEMS) program is to is to develop, within a few years from the program’s launch, innovative, specialized solutions in the field of the building energy systems, in order to increase the revenue stream from the sales of the high technology products and services. The goal of the program is also to tailor the sales and customer service tools and channels to their needs by creating digital consulting and communications tools to enable providing support for the customers in the process of planning and implementing building thermal insulation upgrade and energy saving projects.

As part of the program, the works related to the following projects were carried out in 2022:

  1. Web site and e-consulting,
  2. Thermal Comfort Management,
  3. Energy storage facility for a photovoltaic installation.

The task aimed at implementing pilot solutions for the selected services for the smart city area was continued in 2022. The results of the research work will make it possible to assess the business case, the technical capabilities and organizational readiness of TAURON Capital Group to commercialize and develop the smart city services b based on the use of the Group’s energy infrastructure. This way, the possibility of introducing the new products to the cities and municipalities, stemming from the digitalization and the transition of the global economy towards sustainable development, will be determined. The operational works on the migration of the analytics platform, as well as the activities aimed at providing the missing element of the developed IT architecture, which is the basis for providing the comprehensive services in the smart city area, were carried out in 2022.

The project works aimed at developing a prototype of a decision support tool for purchasing of the flexibility services, based on the analytical and forecasting methods, were continued in 2022. In cooperation with the selected research unit, the prototype forecasting and analytical methods were produced and will be implemented in the prototype IT tool. The methods indicate the forecast loads of the high voltage grid elements over three time frames and perform the verification thereof against the current load parameters of these elements. The information obtained this way will make it possible to identify such areas in the distribution grid where it will be advisable to use the planned flexibility services, and it will enable performing of a preliminary cost analysis that would allow for  determining the economic viability (business case) of purchasing the services.

The project combines the scientific (research) and industrial potential of a number of entities with their competences representing the entire cycle of the circular hydrogen economy – the tasks related to research and development, implementation, production, application, conversion to other fuels and storage based on the new generation technologies, applicable in the large energy installations, prosumer installations and in transportation. The project was submitted to the IPCEI (Important Projects of Common European Interest) program. The works are underway on the preparation of the project documentation required at the pre-notification stage. Among other things, a feasibility study was prepared for the Hydrogen Poland project in 2022.

Cooperation with start-ups

With respect to the cooperation with start-ups the year 2022 was the time of the further development of the TAURON Progres proprietary accelerator program.

The introduction of the new rules for the program in 2021, had a positive impact, in 2022, on the interest in the cooperation among the members of the start-up community and led to an increased flow of applications to the program.

The information and promotional activities were intensified, including with respect to the presence and involvement of TAURON Group’s experts in the events organized for the participants of the start-up ecosystem. Developing greater market awareness of TAURON Group’s innovation activities and openness to the cooperation also with the young technological entities will allow for the successive development of the activities and strengthening of the position of the TAURON Progres program in this ecosystem.

A pilot project was launched, in 2022, with Green CEnergy Sp. z o.o. – a spin-out company of the Warsaw University of Technology. The subject of the launched cooperation is the development of the OptyMator PV system, which supports the construction, maintenance and operation of the photovoltaic farm installations. The task of the artificial intelligence based IT solution, supported by drones, will be to collect data from the photovoltaic farm. This comprehensive system, fed with the reliable data, will allow for a verification and prediction of the condition of the photovoltaic farm infrastructure, as well as for the optimization of the electricity production and will enable comprehensive management of the photovoltaic installation operation.

Continuing to build the strategic position of TAURON Capital Group with respect to the startups, TAURON carried out, in 2022, further investments as part of EEC Magenta – a CVC (corporate venture capital) type fund created in 2018. EEC Magenta increased its investment portfolio to the amount of PLN 103 million in 2022 and currently has 13 innovative startups therein.

The below table presents the projects with the startups carried out in 2022 as part of the accelerator programs, and which are the subject of EEC Magenta’s investments.

Projects with the startups carried out in 2022

Projects Programs and activities related to cooperation with the startups
1. Green CEnergy Sp. z o.o. that is offering a system to support the construction, maintenance and optimization of energy production from the photovoltaic installations. The goal of the project is to develop a universal solution that will improve the efficiency of the operation and use of the photovoltaic installations. It is planned to develop a method for a location assessment based on the local ecosystem parameters, supported by an unmanned aerial vehicle operating in an autonomous or an operator controlled mode. The data provided by the drone will allow for a verification of the production anomalies and damage, detected based on the IoT sensors’ feed or on the data processed. TAURON Progres
2. Reliability Solutions sp. z o.o. that is offering a solution responding to the problem of maintaining the process (operation) continuity in the manufacturing industry and the high costs of production downtime, i.e. the predictive maintenance system, which, through the use of artificial intelligence algorithms analyzing the data collected from the devices, predicts the possibility of an occurrence of a failure. EEC Magenta-
Companies in the investment portfolio of the CVC-EEC Magenta fund
3. Take Task S.A. that is offering a solution responding to the problem of managing the dispersed groups of employees, i.e. a platform for the mobile communications, creating and distributing tasks, as well as collecting feedback at the enterprises where the numerous groups of employees do not use computers every day.
4. Sinterit S.A. that is manufacturing advanced, high-precision 3D printers operating based on the SLS technology, which are offered at the price of a consumer product. This way Sinterit S.A. fills a niche in the additive manufacturing market. Sinterit S.A. printers are a unique solution in the field of prototyping and production of short series of the spare parts.
5. Challengerocket sp. z o.o. that is offering a solution that responds to a market problem with respect to recruiting top-class computer programmers, i.e. a platform. made available under the SaaS formula, used for the automatic evaluation of the programmers using the tests with a self-adapting level of difficulty. Based on the artificial intelligence technology the system enables a quick and reliable assessment of the candidates’ skills.
6. ICsec S.A. that is offering the Scadvance system, enabling the monitoring of the process control networks and the detection of the potential threats and anomalies in the traffic among the devices of such network using the big data, machine learning and artificial intelligence mechanisms for this purpose.
7. Cash Director S.A. that is digitizing the accounting processes in the small and medium-sized companies. The product replaces traditional accounting services and makes it easier for the entrepreneurs (businessmen) to make the optimal financial decisions by acting as a digital CFO. The platform is integrated with a bank account.
8. Waste24 Sp. z o.o. that is offering a platform for effective management of the municipal waste, which is addressed to the enterprises and municipalities
9. DBR77 Sp. z o.o. that is offering a unique marketplace for the industrial robots. The B2B platform enables the previously non-robotic companies to configure their production lines on their own and to select the optimal integrator that will implement the project. The platform uses the advanced 3D tools to visualize the projects.
10. Lekta Sp. z o.o. that is offering a virtual consultant that automates the contact with the customer. Lekta Sp. z o.o. develops advanced speech and text intention recognition algorithms.
11. GeoFusion Sp. z o.o. that is offering the comprehensive services with respect to the exploration and cleaning of the seabed of the unexploded ordnance and chemical weapons. The most prospective innovation offered by the company is the technology used for the extraction from the seabed and the utilization, on the ship at the site of the extraction, of the poisonous warfare agents. The technology is based on the destruction of the plasma.
12. Glopack Sp. z o.o. that is a producer of an innovative pro-ecological stretch film, which, due to its physical properties, is more effective than a standard product. The advanced production technique ensures higher film efficiency and allows for an up to 66% reduction in the plastic consumption in transportation and trade.
13. Solwena Sp. z o.o. that is developing the Percee system for managing energy in the buildings (BEMS) and acting as a virtual operator using the dedicated algorithms and scenarios. By implementing Solweny’s solution, the customers can reduce the energy consumption in the buildings by up to 30%.
14. SmokeD Sp. z o.o. that is offering customers a fire monitoring system for the forests, plantations and other vast areas. SmokeD develops deep learning algorithms for detecting fires by analyzing the camera images.

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