PFR will invest in Rafako to support expansion

State investment vehicle in Poland, PFR will buy some 10% of the planned share issue of listed engineering firm Rafako, one of the associated partners of InnoEnergy Central Europe. PFR intends to be a long-term shareholder and wants to support Rafako’s foreign expansion and exports operations.

Rafako, which announced plans of a PLN 150-180 million issue on Wednesday, hopes for participation from existing shareholders, CEO Agnieszka Wasilewska-Semail said. Lead shareholder PBG, which holds a 50% stake in Rafako, will have to buy into the SPO in order not to lose control over the firm. The matter will be discussed, PBG told the daily.

Rafako is a leader on the Polish power generation equipment market and the biggest boiler producer in Europe. Ca. 80% of boilers operated by Polish utilities had been delivered by Rafako. The Company is also a leader within the field of flue gas desulfurization plants based on wet lime and semi-dry methods.

InnoEnergy and Rafako have been cooperating over past few years on several innovation projects including Polygen and CO2-SNG.

Polygen is a ground-breaking synthetic natural gas plant, which will help local communities reduce air pollution and achieve energy independence simultaneously. The feasibility study assessed €4.2 million Polygen project’s business model and technological capabilities, as well as the need for any additional pre-launch development.

Whereas the CO2-SNG system aims to utilize CO2 separated from industrial facilities (e.g. coal-fired power plant) and, simultaneously, convert the surplus electricity from renewable energy sources into methane. It allows energy producers to reduce CO2 emissions and to adjust the electricity production to its demand.