ORLEN and KGS join forces to expand biomethane production in Poland

Two of Poland’s largest state-backed companies have announced plans to develop a nationwide biomethane portfolio, in a move designed to cut emissions, enhance energy security, and strengthen the circular economy.

Energy group ORLEN and agri-food giant Krajowa Grupa Spożywcza (KGS) have signed an agreement to work together on the construction and operation of biomethane production plants across the country.

The collaboration will focus on using agricultural and post-production waste as feedstock, as well as identifying suitable sites for new facilities — starting with land already owned by KGS.

The project aims to scale up domestic biomethane output as a low-carbon alternative to natural gas, helping to decarbonise sectors such as transport while supporting local economies.

The companies also plan to ensure that digestate, the nutrient-rich by-product of biogas production, is put to use as fertiliser on farmland.

As part of the partnership, ORLEN and KGS will jointly manage the permitting, certification and distribution of biomethane, and explore opportunities to integrate their logistics and supply chains to optimise operations.

The announcement aligns with ORLEN’s wider strategy to lead the region in alternative fuels, including HVO, bioethanol and biomethane.

By 2035, the company aims to produce up to 240 million cubic metres of biomethane annually through a combination of its own plants, joint ventures and offtake agreements.

ORLEN is already building Poland’s first biomethane facility with an integrated bio-LNG unit in Głąbowo, with expected annual output of over 7 million cubic metres of biomethane. It also operates several agricultural biogas plants and continues to expand its renewable energy portfolio.

KGS, Poland’s largest state-owned agri-food group, brings to the partnership extensive biomass resources, processing expertise and nationwide farmland, allowing for efficient integration of energy production with agricultural operations.

The cooperation between the two firms is expected to accelerate Poland’s energy transition, reduce reliance on imported fossil fuels, and create jobs in rural communities while promoting sustainable resource use.