DEFINICIÓN Y OPERACIONALIZACIÓN DE VARIABLES

In 2013, the ORLEN Group completed a range of research and development projects in connection with new products and technologies, implementing as well as developing the segment, and pursuant to the applicable laws regarding environmental protection as well as production and sales of chemicals. The works were performed both on its own and in cooperation with research institutions and centres, higher education institutions, and entities pursuing research and development activities.

ORLEN GROUP

The major works performed on commission of PKN ORLEN included the development of a recipe for fuel composition for the Heat and Power Plant in Płock and for heavy heating fuel with the use of low-grade fractions of asphaltene and aromatic solvents. As part of those activities, analyses of synergy between the Visbreaking technology, which is used in Litvinov and Mazeiku refineries, and the Hydrocracking (H-Oil) technology, which is used in the Płock Plant, were carried out in cooperation with Výzkumný ústav anorganické chemie a.s. (VUAnCh). Additionally, the conformity assessment of electric power determination in combination with heat energy in the Heat and Power Plant in Płock for 2012 in light of Directive 2004/8/EC was performed, and the reports on CO2 emissions in selected refinery systems were reviewed.

Moreover, works related to advanced second and third generation biofuels including bioethanol from cellulose and lignocellulose as well as biodiesel from algae were commenced in cooperation with the Rafineria Trzebinia Group.

The ORLEN Lietuva Group continued the research and development works related to production process efficiency improvement. One of the most significant projects was the construction of Visbreaker Vacuum Flasher, a technologically advanced installation, which would contribute ti the processing depth improvement and higher yields of light fractions. The works were completed and the installation was launched in I quarter 2014.

In 2013, the deisopentanizer (“DIP”) project was completed which allowed the enhancement of the octane number and the decrease in procurement of high-octane fuel components. Similar implementations connected with the improvement of the fuel quality which were carried out in late 2013 were the projects of separating the LCN (light cracked naphtha) and HCN (heavy cracked naphtha) fractions for high-octane gasoline production.

Additionally, in 2013 a burner management system related to the Diesel Oil and Jet Fuel Hydrorefining installation. These projects will allow the reduction of fuels, steam and electricity consumption for own use, and in consequence they will contribute to the improvement of the energy effectiveness index. The works related to C5+ fraction management system in the isomerisation process were also executed, what will cause decrease in purchase of high-octane fuel components and will allow to increase the octane number of fuels, simultaneously.The 2012 design works related to transforming the Diesel Oil Hydrorefining installation into the Hydrocracking installation and changes in the oligomerisation technology aimed at increasing diesel oil production were also continued.

The research and development activities in the refining segment were pursued by the Unipetrol Group in cooperation with VUAnCh. The major works concerned the optimisation of the procedure of heating oil blending from various sources with observance of quality standards and use of the vacuum residue as a road asphalt component. Another study was an analysis of diesel oil composition in terms of stability, efficiency and composition possibilities. The analysis process, commenced in 2012, regarding the possibility to use alternative fractions from production of lubricanting agents in the Fluid Catalytic Cracking installation, and the potential use the vacuum distillate from the Hydrocracking i Visbreaking installation, was also continued. As a result of own tests of new catalysts, technical data were collected and are used by Ceska Rafinerska a.s. for the purpose of catalysts selecting.

In the base oils segment of ORLEN Oil Sp. z o.o. research on post-hydrocracking residue was conducted for the purpose of using it for production of base oils with high content of saturated hydrocarbons, and a project of reducing the costs of energy processes of base oil hydrorefining in the Lubricant Oil Hydrorefining (HROS) installation was implemented. Development works regarding the production of low- aromatic plasticisers for the gum industry, medium and heavy slack waxes with low oil content for specialised applications, and the extension of the base oils range by new viscosity classes. The programme of developing technologies in all product segments comprising energy-saving and modern engine oils, oils for vehicle shock absorbers, for dual clutch transmissions, engine oils, transmission and multi-purpose oils for agricultural purposes (Agro line), high quality hydraulic and compressor oils, and oils for industrial gas engines, were continued.

Rafineria Trzebinia S.A. developed a process concept of DRW installation yield optimisation and of plant energy intensity reduction. In the area of ester production, works related to increasing the production installation capacity were continued, and a concept and process of using less expensive oil raw materials with higher content of phosphorus, without any effect on the quality of the final product.

A recipe for high-margin waxes used in the tyre, gum, candle, agricultural industries was developed in the area of paraffin products. Works related to the innovative process of converting glycerine to propylene glycol were also continued.

In Rafineria Nafty Jedlicze S.A., in connection with the observed deterioration in the properties of the waste oils referred to, a project aimed at preparing an efficient system of waste oil segregating streams referred to the subsequent regeneration process was continued. On the basis of the research work and industrial tests of separating alkylate by distillation carried out in 2012, a technology for producing AVGAS 100 LL aviation gasoline was developed. The project is currently in the phase of preparing technical documentation, conducting analyses of cost- effectiveness and obtaining a patent for the developed technology. Research, trials and production of new products including plasticisers, AP Hydro painter naphtha, and marine fuel were also carried out in 2013. Works on the Metalworking project, including comprehensive research of the technology of producing metalworking fluids and oil bases from waste oils were also continued.

The ORLEN Group satisfies the requirements of REACH resolution (resolution (UE) 1907/2006 of European Parliament and European Union Council) which main objective is to ensure a high level of human health and environment protection with simultaneous support of competitiveness, innovativeness, and propagation of development of alternative methods of evaluation of threats caused by substances. A part of execution of the resolution‟s tasks, producers and importers of substances are obliged to its registration in European Chemicals Agency (ECHA). As at 31 December 2013 the ECHA data base contained 237 registration documentations submitted by the ORLEN Group.

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