Natural capital

We are reducing our negative impact on the environment

One of the pillars of our strategic approach to sustainable development is responsibility for the state of the natural environment. The impact of LOTOS on the environment is part of the specificity of our business. Therefore, the pursuit to maximally reduce this impact became one of the most important goals in this scope.

We try to constantly monitor and analyze the scope of our impact. Due to the large variety of market segments in which we operate, we influence various components of the ecosystem. In the scope of production, our impact is primarily related to the emission of pollutants into the air, which we try to limit year by year. On the other hand, in the scope of extraction, we try to rationally manage the issue of extraction waste as well as water and wastewater management.

Due to the scale of our activity, the issue of the energy consumed by the Group is an equally important environmental aspect for us. We strive to responsibly manage its consumption throughout the entire value chain. We do it by taking care of its rational use, maintaining good technical condition of devices and undertaking effective investment activities. 

In order to act more efficiently in the scope of environmental protection, in June 2017, we joined the partnership for the 2030 UN Sustainable Development Goals (SDGs). Thus, we have committed ourselves to take actions that will contribute, among others, to protecting the planet, underwater life and life on earth. We are already trying to implement them at every stage of our business operations and we take into account the establishing new programs for environmental protection.

We comply with high standards

The main value of the LOTOS Group’s liability towards the natural environment is the purity, understood as a commitment to comply with the highest environmental standards. It is related to our environmental policy, which is mainly focused on the clean production. In the Integrated Management System policy, we have committed ourselves to ‘environmental protection, including minimising environmental footprint and raising environmental awareness of our employees and trading partners’. We are constantly striving to reduce the consumption of materials and raw materials, reduce emissions, manage waste in an efficient way, carry out complete wastewater treatment, as well as create safety in the area of ​​industrial processes in such a way as to effectively prevent failures.

As a member of the United Nations Global Compact society we declare, that in our environment policy we follow the established principles:

• Preventive approach to the natural environment.
• Undertaking initiatives aimed at promoting the attitudes of ecological responsibility.
• The use and dissemination of environmentally friendly technologies.

Through efficient environmental protection management, we try to ensure that all LOTOS Group companies meet the conditions of environmental consents granted to them.

In the scope of ​​reducing energy consumption, we undertake numerous pro-efficiency actions. We identify the savings potential and places where undertaking organizational, renovation or investment activities will bring the best energy and economic effects. Through ongoing activities in all the above-mentioned areas of the organization’s operation, we have been implementing initiatives, bringing measurable energy benefits for a number of years.

In 2017, we carried out further preparatory work to adapt the two companies of our Group (Grupa LOTOS S.A. and LOTOS Asfalt) to the, so-called, BAT conclusions for the refining sector, taking effect from October 2018. The BAT conclusions are an EU standard, defining a catalog of the best possible techniques and technologies to be implemented in each of the processes
taking place in the refinery, which will limit the impact of a given plant on the environment. The obligation to use these solutions is combined with the obligation to comply with rigorous emission parameters, such as pollutant concentrations in waste gases and wastewater. Installations in these companies are in the majority of cases adapted to new requirements, but they still require further adaptations in two areas.

The first of which is the obligation to extend the way of monitoring pollutant emissions to air from refinery installations of Grupa LOTOS S.A. So far, national law has obliged the refinery to measure emissions from emitters twice a year – in summer and in winter. These measurements concern four basic energy pollutants: sulfur dioxide (SO2), nitrogen oxides (NOx), carbon monoxide (CO) and particulate matter (PM). Meanwhile, new legal requirements oblige the Gdańsk refinery to introduce continuous measurements of SO2, NOx, CO and PM emissions on two technological emitters; introduction of continuous SO2 emission measurements on exhaust gas emitters
of Claus installations and for installing measuring stands for periodical measurements of polychlorinated dibenzodioxins and furans (PCDD/F) emissions at outlets from two reforming plants.

The second scope regulated by the BAT conclusions and requiring implementation at the Grupa LOTOS S.A. and LOTOS Asfalt refinery is the leak detection and removal program within the production facilities, the so-called the LDAR program (Leak Detection and Repair Program). It will cover all elements of refinery installations where leaks may be caused as a result of operation, in particular pumps, manual and automatic valves, gate valves, flanges, etc.
The essence of the program is based on such control of said devices, that will allow the fastest possible detection and removal of leaks created in them, while ensuring the highest possible cost effectiveness of such measures. The biggest challenge in creating this type of program is the inventory of all elements of the installation in which leaks may potentially occur and the organization of collected information in IT databases. It is estimated that there are over 100,000 such devices at the Gdańsk refinery of Grupa LOTOS S.A. and LOTOS Asfalt. For obvious reasons, it was also decided that the requirement to monitor the unorganized emissions described above will be implemented as part of the LDAR program.

We feel responsible for our activities, in case of any grievances related to our impact on the environment, we try to understand their reason and eliminate the cause if necessary. Last year, we received 4 formal grievances. All of them concerned the discomfort of the refinery neighbors associated with odors or noise and were quickly clarified.

In 2017, we also paid the environmental penalty imposed on us for exceeding the limits for noise at one of our fuel stations (which reports to LOTOS Paliwa). By the decision of the Silesian WIOŚ, it was decided that the penalty should be included in the cost of constructing a acoustic shield next to the station.

We invest in environmental protection

For many years, we have been conducting activities aimed at actively reducing our environmental impact. The total amount of expenditure on environmental
protection in 2017 amounted to PLN 96.1 million.

Expenses allocated by the LOTOS Group to environmental protection

• PLN 69.5 million – costs and capital expenditures incurred by the LOTOS Group companies to prevent damage and manage environmental protection.
• PLN 26.5 million – costs of waste treatment, emission reduction and remediation.

Environment friendly education

Environmental protection and ecology – especially when it comes to ​protection of biodiversity of the Baltic Sea due to the coastal location of our refinery and in relation to valuable natural areas located in the immediate vicinity of the Company.

The „LOTOS helps Baltic nature” program

Since 2009, we have been cooperating with the Development Foundation of the University of Gdańsk and the Marine Station of the Institute of Oceanography at the University of Gdańsk in Hel, implementing the program „LOTOS helps Baltic nature”. Joint actions shall help stopping the process of extinction of the most endangered species of marine fauna living in the Baltic Sea, primarily porpoise called the Baltic cousin of dolphin, which number is currently estimated at 100 pieces, as well as the gray seal.
We try to increase our positive impact on the environment by cooperating with experts in the field of environmental protection, active nature protection and ecological education.

Main partner of the UN Global Compact „Baltic Program”

Since 2015, we have been the main partner of the UN Global Compact „Baltic Program”, aiming to ensure the sustainable development of this one of the most heavily-laden maritime areas in the world.

More about the Program HERE

We focus on employee education

At LOTOS, we also care about the education of employees in the field of environmental protection. We use internal communication to inform our teams about environmental protection issues and individual, company, regional and global activities related to it. We also strive to shape the desired pro-environmental attitudes of employees.

We minimize emissions of pollutants

The most important source of environmental impact resulting from our activity is the emission of gases into the atmosphere. Therefore, we attach great importance to the fact that the processes causing the emission of pollutants into the air are carried out
based on the best available techniques and practices, minimizing the impact of the plant in this respect.

We have significantly reduced the environmental impact of our refinery. We have achieved this with a series of consistently implemented investment and organizational projects (i.e. EFRA Project or the leak detection and removal program within production installations).

*Applies to companies: Grupa LOTOS S.A., Energobaltic, LOTOS Asfalt, RCEkoenergia, LOTOS Petrobaltic

Indirect greenhouse gases emissions by LOTOS Group

In 2017, the LOTOS Group companies did not emit any of the ozone-depleting substances.

We reduce the emissivity of refineries

One of the important activities that we undertook in order to protect the environment in 2017 was the continuation of the investment to bring natural gas to our refinery in Gdańsk, which is the cleanest fossil fuel. Its combustion leads to a significantly lower emission of sulfur oxides and dust than compared to heavy fuel oil. In 2017, refinery furnaces were fueled only with fuel gas, which significantly reduced emissions to air – especially in the field of sulfur oxides and dust. We have been powering the heat and power plant of Grupa LOTOS S.A. in the same way for many years.

Thanks to the use of natural gas, as the main fuel in the heat and power plant, as well as other investments reducing the energy intensity, we have kept not only the emissions of pollutants into the air, but also emissivity – emission in relation to CWT (Complexity Weighted Tonne). The coefficient of the carbon dioxide emission by the company is maintained at the level of the most effective refineries in Europe, when compared the emission coefficients. The average emissivity ratio, including renovation, amounted in 2017 to 30.3 kg CO2/CWT, with CO2 emissions of 1.8 million Mg.

Refinery – the decision that has impact on the environment

In 2017, at the Gdańsk refinery we performed comprehensive cleaning and necessary repairs and/or replacement of equipment within the so-called overhaul shutdown. Prior to this process, we analyzed all possible aspects of the environmental impact of the renovation works. The risks identified at this stage allowed us to take appropriate measures, such as cleaning road surfaces or setting up tents to limit dusting.  

Overhaul shutdown affected the environment in two ways. On one hand, it resulted in smaller – as a result of the monthly shutdown of the installation – annual CO2 emissions and energy pollution into the air, but on the other hand it produced much larger than usual amounts of waste from maintenance work.

We reduce energy consumption

We operate in a systematic fashion, where the primary goal is to optimize energy consumption. We monitor the energy efficiency of installations and their partial processes on an ongoing basis. We analyze individual areas and participate in tasks which goal is to reduce energy consumption.
Thanks to the strategic approach in managing the energy consumption, we are one of the most energy-efficient refineries in Europe.

In 2017, through diverse operational initiatives, we reduced the total energy consumption in the organization by 7.7% compared to the previous year.

Energy consumption within the organization

^1,2 The fuel equivalent for a selected group of fuels in a given period is the product of the quantity (t or Nm3) of the burned fuel and its calorific value (GJ/t (or Nm3).
In the case of electricity, the consumption of energy purchased on the market was brought to the fuel equivalent using the average efficiency of generation of the electricity sources in Poland.

We improve production and extraction

We conduct our production and extraction activities in accordance with the most strict environmental protection standards. We produce high quality products with the least possible environmental impact, and we care about minimizing the negative impact on the environment as early as at the stage of their creation.

In our development plans, we take into account innovative technological projects that provide the rational use of natural resources.

An important project of environmental management in 2017 at the LOTOS Group is the implementation of EFRA investment, thanks to which oil processing will be more comprehensive. As a result, the group will cease production of high-sulfur fuel oil. Instead, it will create an additional 900,000 tonnes of motor fuels and coke.

Benzene, lead and sulfur content in fuels

Consumption of raw materials by the Grupa LOTOS S.A. refinery in the production process in 2017

The Russian REBCO (Russian Export Blend Crude Oil) crude oil accounted for 78% of all the purchase. The remaining part of the raw material consisted of crude oil imported from other directions, including approx. 201 thousand tonnes of crude oil delivered by the LOTOS Petrobaltic Group. The selection of crude oils for processing was based on the process of production optimization, in order to take advantage of opportunities to increase the processing margin of the refinery.

Other feedstocks for refinery production

Internal consumption of the refinery

Gasoline final products

We use water resources based on our water licences and integrated permits. Analyzes of the water consumption impact on the environment confirm that our activities do not significantly affect the functioning of protected and valuable natural areas, and the amount of water consumed is kept well below the permissible values.

Total water withdrawal by source by LOTOS Group

In 2017, more than 25% of the consumed water was reprocessed or recycled

Percentage and total volume of water recycled and reused by LOTOS Group

In 2017, we did not notice any significant leaks in the LOTOS Group. However, each of the Group’s production plants is properly prepared for such eventuality. On the production plants there are lots of procedures, designed to effectively prevent leakage and respond appropriately. Chemical Rescue, a specialist team functioning in our company also serves this purpose. Possible waste resulting from the leak (i.e. soils contaminated with petroleum substances) is transferred to specialized companies that deal with waste management in accordance with the law.

Our results in year 2017 confirm the effectiveness of the water and sewage system of the LOTOS Group, as evidenced by the average annual values ​​of all
(excluding boron) wastewater quality indicators, which amounted to less than 50% of the permissible values.

Total wastewater discharge by quality and destination at the LOTOS Group

Volume and disposal of formation or produced waterby LOTOS Group

Volume of flared and vented hydrocarbons

The amount of produced drilling wastes (drilling muds and cuttings) and the procedures of handling and utilization

In 2017, companies from the upstream segment did not generate cuttings.

We prefer the waste management methods that are environmentally most friendly, such as recycling and recovery, while we clearly limit less-ecological methods, such as incineration without energy recovery, storage and other forms of utilization.

Therefore, in the area of ​​waste management, we strive to make the largest possible part of it available to external recipients who will subject them to reprocessing or recycling processes. As many as 18,624 tonnes (89.9%) of waste handed over by us in 2017 to external recipients were subject to recovery or recycling processes.

Total weight of waste by type and disposal method by LOTOS Group

Percentage of products sold and their packaging materials that is reclaimed, by material category

We select contractors responsibly

We require environmental responsibility from ourselves, but we also expect it from our contractors. We run a company verification policy within the scope of relevant licences regarding environmental protection, and as a part of the concluded agreements we oblige them to conduct operations in compliance with legal requirements concerning environmental protection, such as, for example, waste management or paying appropriate fees for using the environment.

While looking for external suppliers for tasks that are directly related to the impact on the environment, in justified cases we subject them to an additional environmental criterion. In 2017, 6 of our 1,852 new suppliers were obliged to meet these additional requirements.