Investors welcome Poland's decision to freeze last coal-fueled plant project

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Investors welcome Poland's decision to freeze last coal-fueled plant project
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Shares in Polish state-run utilities Energa and Enea gained on Friday after they...

WARSAW - Shares in Polish state-run utilities Energa and Enea gained on Friday after they froze financing of their joint project to build 1 a GW coal-fueled power unit, citing difficulties raising funds due to environmental concerns.

Construction of the plant in Ostroleka, north-east Poland has already started, but Energa and Enea have not secured full financing as banks have shied away from backing such projects for environmental and sustainability reasons. PKN Orlen, a state-run refiner which plans to take over Energa, had signaled that it may opt to replace coal with less carbon-heavy gas as a fuel source for the plant, which had been expected to be Poland’s last coal-fuel plant project.

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