Famur will operate within the TDJ Group’s new business structure, renamed Grenevia. This is intended to signal a faster transition toward green energy and a stronger focus on solar and wind energy, as well as batteries for electric vehicles. However, the mining sector has not been forgotten.
Famur, after changing its name to Grenevia, will integrate and develop the operations of four business segments: large-scale photovoltaics and photovoltaic solutions for businesses, concentrated in Projekt Solartechnik; battery systems, energy storage, and electromobility under Impact Clean Power Technology; industrial automation equipment, as well as solutions for the energy distribution sector, based on Elgór+Hansen; and technologies and products for the mining and wind energy sectors will remain within Famur.
Accelerating the implementation of the green transformation
“The new structure and name are the result of accelerating the Group’s green transformation. Grenevia’s long-term goal is to support the development of a low-emission and sustainable economy,” explains the group. The group also announced its Sustainable Development Strategy for 2023-2030. By 2030, Grenevia will reduce greenhouse gas emissions from its current operations by 40% and, through the development of new business segments, avoid emissions of up to 2.3 million tons of CO2. By the end of 2024, the company also aims to generate approximately 70% of its revenue from sources other than thermal coal and to change its energy mix, which will be approximately 35% based on renewable energy sources.
The transformation of the Famur group has been going on for several years now
Based on the new strategic directions announced in 2021, the Famur Group diversified its business activities, transforming itself into a holding company investing in the green transformation. The first step was to enter the large-scale photovoltaic sector and provide photovoltaic solutions for the B2B sector in 2021. In 2022, it entered the wind energy sector, drawing on its extensive experience and expertise in designing and building industrial equipment. That same year, the group also invested in another promising renewable energy sector: battery systems, electromobility, and energy storage. 2022 also marked Elgór+Hansen’s business diversification. The company entered the field of solutions for the energy distribution sector, building, among other projects, transformer stations for renewable energy sources. This resulted in the creation of a multi-disciplinary holding company, the development of which required the definition of a new organizational framework.
“The new structure and name of the holding company mark the beginning of the next stage in our history, one we are entering with a clear vision of who we want to be and how we intend to achieve our goals. Within this clear structure, we want to focus on building the value of individual segments and thus actively support the development of a low-emission economy. The name, in turn, directly alludes to the green road (Grene) we are taking as a company in connection with the new direction announced in May 2021,” says Mirosław Bendzera, CEO of Famur S.A.
An attractive platform for investors
“We are aware of the organization’s social, environmental, and economic responsibilities, as well as the current macroeconomic situation. Therefore, the announced Sustainable Development Strategy is an expression of our ambitions and a declaration of active sustainable development activities, which remain consistent with our Group’s business strategy,” adds Mirosław Bendzera.
Grenevia aspires to be an attractive platform for stock market investors to invest in projects benefiting from the green transformation trend. At the same time, the Group will continue to secure green financing, utilizing optimal solutions available on the market. Grenevia will place particular emphasis on implementing further transformation that balances economic, environmental, and social aspects. Operating based on the principles of sustainable investing, it will support portfolio companies financially, organizationally, and in the implementation of further acquisitions and mergers. An example of this is the acquisition and launch of project finance for the construction of photovoltaic farms for Projekt-Solartechnik.
“As a stable and long-term investor in the Famur Group, TDJ has successfully supported it in achieving a leading position in the mining machinery market for years. The time has come for new goals. For two years, we have been supporting the company in its green transformation process. Today is the symbolic day when we give this new, green path a name – Grenevia. We want the company to become a model example of a planned and implemented transformation, where, with respect and care for existing customers, we focus on building a completely new business, benefiting the environment, employees, and shareholders,” commented Tomasz Domogała, chairman of the supervisory board and owner of TDJ.
Sustainable development strategy
The implementation of the Sustainable Development Strategy is intended to help achieve goals such as avoiding emissions of up to 2.3 million tons of CO2 by 2030 through the development of new business segments. A 40% reduction in greenhouse gas emissions by 2030 (compared to 2021) is planned, and the Group’s energy mix is also expected to change – approximately 35% of energy used by the end of 2024 is to come from renewable energy sources. The revenue structure is also expected to change – by the end of 2024, approximately 70% of revenue is to be unrelated to the thermal coal sector, primarily through the development of new business segments. As explained, the selection of these goals is a consequence of an in-depth analysis of global megatrends, primarily the paradigm of reducing emissions and responsible use of resources, which are catalysts for the energy transformation of the global economy. The strategy directly supports the UN Sustainable Development Goals, strengthening the Group’s commitment to addressing global challenges. Twenty-two implementation projects have been defined as part of the strategy. The consulting firm EY was involved in the development of the Grenevia Group’s Sustainable Development Strategy for 2023-2030.
“We are proud to have supported the company in its groundbreaking transformation process. This is one of the first projects in the region to so comprehensively and unequivocally embed sustainability into the DNA and operations of the organization. At the same time, it clearly demonstrates how the Group aims to build long-term value for its business and stakeholders, contributing to improving the quality of the environment we live in. We believe that the implementation of the Sustainable Development Strategy, which has already begun, will solidify the Group’s position as a leader in the green transformation and serve as a benchmark for others,” says Dr. Marcin Witkowski, EY Manager.
Good financial results despite Russia’s problems
The Famur Group has not yet presented its financial results for the full year 2022. Their presentation is scheduled for April 2023. For now, we can review Famur’s results for the first three quarters of 2022. During this period, the group generated PLN 857 million in revenue, an 18% increase compared to the same period in 2021. The vast majority – PLN 818 million – came from the mining machinery segment (12% year-on-year growth). The group also generated PLN 39 million in revenue from the photovoltaic segment. 2022 is the first full period of segment consolidation. In the first nine months of 2022, the Famur Group generated PLN 283 million in EBITDA, a 22% increase compared to the previous year. However, net profit declined: from PLN 99 million in the first three quarters of 2021 to PLN 70 million in the same period of 2022. Famur explains that the decline in net profit is the result of a loss from discontinued operations, primarily due to the loss of operational control over its Russian subsidiary, OOO FAMUR, in the second quarter of 2022.
Dariusz Ciepiela
The author is a journalist with the WNP.PL portal and Nowy Przemysł magazine.
Throughout Silesia, investors are trying to avoid plots affected by mining damage, though they don’t always succeed. At least, that’s been the case until now. Recently, however, a company has emerged searching for just such a “shaky” property across the region. It found it in Bytom, and the story may end in distant Iceland. What could such a scenario mean for Silesia, the local construction industry, and the mining companies themselves?
“The applicant (…) is interested in entering into a lease agreement for a property located in an area affected by mining damage, for the purpose of conducting a research and development project involving the construction of a multi-apartment building with a wooden frame structure in this area, using structural solutions that ensure stability and resistance to stresses caused by seismic shocks,” reads the first sentence of the justification for the resolution adopted in December by the Bytom city council. Resolution under which the local government of Bytom leased a plot of land occupying 2,000 square meters in the Miechowice district to the Kraków-based company Modular Wood for a period of 15 years.
A Krakow-based company was looking for a “shaky” plot of land throughout Silesia.
If anyone still doubts the quote from the resolution’s justification, we hasten to clarify and dispel any doubts – yes, the Krakow investor intended to build a residential building on land exposed to mining damage.
“As part of the project, we would like to construct two three-story residential buildings: the first prototype in Silesia in seismically loaded areas to test how the structure works, and the second reference building in areas free of seismic activity,” confirms Agnieszka Theuer, an architect from the Krakow-based firm. She adds that the company has sent inquiries to virtually all mining municipalities in the region, requesting the identification of potential properties suitable for such a project. Only Bytom responded positively, suggesting a plot of land classified as category II or III mining damage, located on Elektrownia Street in Miechowice (the Bobrek-Piekary mine, owned by the Węglokoks Group, is located in this area).
“In Miechowice, we have an active mining area, and mining impacts are and will continue to occur,” explained Włodzimierz Drogoś, head of the real estate department at Bytom City Hall, during the December session.
Indeed, the effects of mining impacts in this part of the city are visible, for example, in the form of warning signs along national road 88, floodwaters forming after rain, and cracked tenement walls. However, if someone expects to find barely-standing buildings, supported by shoring, on the aforementioned Elektrownia Street, they might be a bit disappointed. On one side of the street, they’ll find multi-story apartment blocks devoid of such “decoration” and operating production plants, while on the other, they’ll see wasteland. Nothing to immediately label “Bytom crumbling into ruins.” However, it is worth noting that the concession for coal extraction from the Bobrek-Miechowice 1 deposit, issued a decade ago, is valid until 2040. Therefore, the landscape in the area of the plot selected for testing may still change.
They want to start the project in Bytom and end it in… Iceland.
Why build a house on a plot of land damaged by mining? Many of us (especially those who have lived in a building where crooked walls and floors were the norm, and an occasional chandelier and shaking glasses in a cabinet were no surprise) might give such an idea a serious shake of the head.
The key to answering this question lies in the profile of the company interested in the “shaky” plot. As its representatives explain, it specializes in the construction of prefabricated wooden houses for Scandinavian countries. Importantly, it originates from Yabimo, a company that has been known for many years, primarily in Iceland, Norway, and Sweden, specializing in steel structures. Both of these entities (Modular Wood, in collaboration with the Yabimo Group) are seeking European funding for a research and development project involving the construction of multi-story residential buildings. –
– The aim of the project is to develop technology for the production of wooden or mixed-frame modules intended for residential purposes, using structural solutions that ensure stability, resistance to seismic stresses, and their optimization for land and sea transport – informs Agnieszka Theuer.
As the company reports, the houses tested in Bytom, if they passed this practical “exam,” could then be put up for sale in Iceland. And this is where everything begins to fall into place. Located in the North Atlantic, Iceland is known not only for its beautiful, rugged landscapes, the Northern Lights, culinary curiosities, and the songs of the eccentric singer Björk, but also for its high seismic activity. This is due to the island’s location at the junction of two tectonic plates – the Eurasian and North American. The result? The number of tremors there can reach several hundred a week, and several thousand a year. Although there are also periods when the earth is even more tremors – suffice it to say that in the winter and spring of 2021, tens of thousands of tremors were recorded in Iceland in just a few weeks, the strongest of which had a magnitude of over 5 on the Richter scale. Such strong movements are marginal, most are much weaker (some of them are only able to be registered by Seismographs), making them similar to the quakes known from the “Silesian backyard.”
Considering these conditions, there is reason to believe that the results obtained during the Bytom pilot (the media-generating quakes that occurred in that city in 2008 and 2019, which reached 3.7 on the Richter scale) may indeed generate some interest in Iceland. Perhaps not only there, either. Wooden frame house structures are also used in Japan, and during earthquakes occurring there, they reportedly withstand small and medium-sized tremors relatively well. Research into structural solutions that provide buildings with seismic resistance is also underway in California, Italy, and Taiwan.
The pilot will be closely monitored not only by scientists
Construction of the pilot house on a “shaky” plot in Miechowice is expected to begin next year, as the coming months will be devoted to finalizing the necessary formalities and awaiting the announcement of competitions for the programs where EU funds will be distributed. Once this is completed, scientists from the Kraków University of Technology will closely monitor the performance of the three-story structure.
“Depending on how the project is implemented and how it ends, the investor intends to hand over the building to us after the lease period ends, with the possibility of occupancy if the test results are positive,” Chief Drogoś told the councilors during the December session.
It can be assumed that scientists from the Kraków University of Technology will be monitoring the building’s performance. The idea of creating an earthquake-resistant house in Silesia must also attract interest from those outside the scientific community: builders, architects, property managers, and, of course, the media and ordinary residents. It would be difficult, however, to be otherwise. This is by no means an “academic” topic. Less than a decade ago, areas affected by mining operations accounted for approximately 22 percent of Bytom’s area, which had obvious consequences. A few years ago, over 40 buildings in Miechowice were placed under special surveillance due to mining damage. Residents wondered at the time whether they would be subject to the same fate that unfolded in the Karb district, adjacent to Miechowice, at the beginning of the previous decade. Several hundred people had to be relocated from buildings damaged by mining (walls cracked and shifted, and chimneys were damaged). The incident was widely reported across Poland. Every news station and news service in the country reported on the events in Bytom, and the Supreme Audit Office began to investigate the repair of mining damage in the city. Today, there is no trace of the buildings evacuated at that time – given the scale of the deformation, they were simply demolished. However, the issue of mining-related nuisances has not disappeared. Since November, renovations have been underway in Karbiu on the historic Church of the Good Shepherd, built in the early 20th century and which has been struggling with mining damage for years.
“We will begin by completing two basic tasks: a reinforced concrete surround around the church to stabilize it somewhat, and repairing and stabilizing the church walls,” Father Konrad Krzyż, pastor of the Good Shepherd Parish, explained to the congregation as renovation work began. Subsequent stages include strengthening the foundations to protect the church from potential future mining damage, repairing the towers and roofs, and culminating in investments aimed at ensuring the church’s energy independence. The scale of the entire project is best demonstrated by the fact that it could take four to five years to complete.
The structure will last as long as the foundations are properly constructed.
To what extent could the potential success of the pilot project announced by the Krakow-based company change the realities of residential construction in Upper Silesia and the surrounding area? The vision of earthquake-resistant homes is incredibly tempting given the vast areas where mining damage occurs and the fact that even the definitive cessation of mining operations in a given location doesn’t necessarily mean the cessation of surface deformation. It’s tempting for developers and those dreaming of their own home, but also tempting for mining companies themselves, which regularly spend considerable sums on mining damage remediation. Suffice it to say, in 2020, the mines of Jastrzębska Spółka Węglowa alone spent PLN 100 million on this purpose. The Polish Mining Group (PGG) allocated even more, over PLN 130 million, in the same year to repair mining damage and protect buildings from the impacts of mining operations. This amount increased further in subsequent years, reaching PLN 152.5 million in 2022 (in total, PGG spent nearly PLN 421 million on this purpose in 2020-2022).
Of course, the art of protecting buildings from the negative effects of hard coal mining has been flourishing for decades. It primarily involves analyzing the slope of the terrain and designing the structure accordingly (with particular emphasis on symmetrical shape and constant height, and ensuring expansion joints where necessary), as well as installing additional reinforced concrete foundations, ring beams, and lintels. Therefore, it’s not as if construction has been carried out so far without attempting to protect buildings from the effects of underground mining. The effects of these measures are certainly debatable. When asked whether timber-frame structures could open a “new chapter” in this art, experts are (unsurprisingly) quite cautious.
“Yes, it is possible to use such a structure in areas affected by mining damage, as the wooden structure is flexible enough to easily adapt to deformations, but this requires the use of appropriate foundations. These limitations must be taken into account,” explains Professor Leszek Szojda from the Department of Structural Engineering, Faculty of Civil Engineering, Silesian University of Technology. He clarifies that the foundations would have to be sufficiently massive in such a situation, because while the timber structure itself can withstand significant stresses without risk of deformation, the finishing elements of such a building could prove susceptible to shocks.
“Which, in itself, would not pose a threat to the structure, but it would not be tolerated by the building’s occupants,” says Professor Szojda.
Simply put, it could turn out that from a potential tenant’s perspective, living in such a building would entail the same everyday inconveniences faced by residents of buildings constructed using traditional technologies located in areas affected by mining damage (e.g., scratches on plaster or plasterboard in rooms). Determining how massive the foundation of such a modular building would need to be would likely be one of the practical challenges designers would face. Especially since, as the scientist explains, the aforementioned fragility of wooden structures makes it more difficult to “cooperate” with large, rigid foundations. This, by no means, rules out the idea, but it inevitably forces the question of the economics of such an investment. So, as in many cases, the question ultimately arises: who is willing to pay for a given solution and how much?
Over a thousand earthquakes a year. Reducing production hasn’t changed anything.
The scale of earthquake activity in the Upper Silesian Coal Basin is best demonstrated by data collected by the Upper Silesian Regional Seismological Network (composed of more than a dozen measurement stations located throughout the Silesian Voivodeship and western Małopolska). These data indicate that over 65,000 earthquakes with energy E ≥ 105 J were recorded between 1974 and 2006. These phenomena were particularly intense in the 1970s and 1980s, when the number of high-energy earthquakes averaged 3,500 per year (with over 20 rock bursts causing damage to infrastructure). Later, until the end of the 20th century, these numbers declined, reaching approximately 1,100-1,200 earthquakes and 3-4 rock bursts at the turn of the 21st century. Subsequent years, however, brought no further decline, even though the volume of production in the Polish mining industry itself was systematically declining. In fact, there were years when the number of these events increased significantly, such as in 2014, when 1,765 such earthquakes were recorded (a record since the beginning of this century), or in 2020, when the number reached nearly 1,600 in the area of Polish hard coal mines, almost 22% higher than the previous year (to this number must be added approximately 500 earthquakes in copper mines). Experts attribute this to the fact that production from seams at risk of rockbursts was increasing, so earthquakes did not decrease, and the overall number of earthquakes increased, with the highest energy levels.
Michał Wroński, journalist of the regional website SlaZag.pl
The year 2023 will be a period of significant changes in the ownership structure of the Polish coal mining and energy sectors. These changes affect, among others, Tauron Wydobycie and coal-fired power plants belonging to the Enea, Energa, PGE, and Tauron groups.
These changes have already affected Tauron Wydobycie. As of December 31, 2022, ownership of Tauron Wydobycie shares was transferred from Tauron Polska Energia to the State Treasury. As a reminder, Tauron Wydobycie comprises the Sobieski, Janina, and Brzeszcze mines.
Three mines for 1 złoty
This transaction is the result of a conditional agreement signed on October 21, 2022, between Tauron Polska Energia and the Ministry of State Assets for the sale of 100% of Tauron Wydobycie shares. The sale price was 1 złoty and takes into account long-term financial projections covering the years 2022-2049. The valuation was established following a valuation of the mining company’s shares by an external, independent advisory firm. For now, the company will operate under the name Tauron Wydobycie, but consent has been granted to use this name for only one year. The company’s name will be changed later. Among the proposed new name is the old name, Południowy Koncern Węglowy (Southern Coal Concern), which was established in 2005. Południowy Koncern Węglowy comprised the Sobieski and Janina mines, and later, when the group operated as Tauron Wydobycie, it was joined by the Brzeszcze mine, also purchased for one złoty. Tauron Wydobycie is intended to operate independently and has no plans to merge with Polska Grupa Górnicza (PGG). Rumors of such a merger have been circulating in the mining community. Tauron has not yet released its results for the full year 2022. These results will also include Tauron Wydobycie’s results. For now, we can only rely on the results for the first nine months of 2022. Commercial coal production in the first three quarters of 2022 at Tauron Wydobycie amounted to 3.4 million tons, an 8% decrease compared to the same period in 2021, when it reached 3.7 million tons. Coal sales volume was 13% lower at 3.47 million tons, compared to 3.99 million tons a year earlier. In the third quarter, Tauron Wydobycie’s three mines produced only approximately 0.7 million tons of coal. For comparison, in the third quarter of 2021, they produced 1 million tons. In the first three quarters, Tauron Wydobycie’s revenue amounted to PLN 1.63 billion, compared to PLN 990 million a year earlier. EBITDA reached PLN 271 million (a loss of PLN 174 million the year before), and operating profit for the first three quarters of 2022 was PLN 57 million (a loss of PLN 460 million the year before). Tauron Wydobycie spent PLN 311 million on investments in the first three quarters of 2022 (of which PLN 144 million in the third quarter alone). The largest expenditures were allocated to production preparation (PLN 241 million), modernization and replacement projects (PLN 58 million), and the construction of the Grzegorz shaft at the Sobieski mine (PLN 8 million).
A new giant will emerge in the Polish energy market
Another change, currently planned, is the establishment of the National Energy Security Agency (NABE). The agency will be established on the foundation of PGE Mining and Conventional Energy (PGE GiEK). This is one of the largest companies in the PGE Group, and includes, among others, The Bełchatów, Turów, Opole, Rybnik, and Dolna Odra coal-fired power plants, as well as the Bełchatów and Turów lignite mines, were planned to be purchased by the State Treasury, which would then purchase the coal-fired power plants spun off from the Enea, Energa, and Tauron groups. It was then assumed that the State Treasury would first purchase the coal-fired power plants spun off from the Enea, Energa, and Tauron groups, and then increase the capital of PGE GiEK and contribute shares in Tauron Wytwarzanie, Enea Wytwarzanie, Enea Połaniec, and Energa Elektrownia Ostrołęka. A holding company would then be established. NABE was initially scheduled to be established by the end of 2022, but the deadline was postponed to the end of the first quarter of 2023. The agency is scheduled to commence operations on April 1, 2023. It will be a company wholly owned by the State Treasury. It will be the largest electricity generator in Poland, with an approximately 50% share in the power generation segment, and employing just over 30,000 workers. The creation of NABE is intended to free energy groups from coal-based assets and facilitate their access to financing for investments in energy distribution and renewable energy sources, among other areas. Many financial institutions are reluctant to finance energy groups that generate energy from coal.
Dariusz Ciepiela
The author is a journalist for the WNP.PL portal and Nowy Przemysł magazine.
