Gas Instead of Coal, Hydrogen from China: This Week in Energy in a Nutshell
Future Energy · weekly review · 2026-09-30
Weekly Energy Review

Gas Instead of Coal, Hydrogen from China: This Week in Energy in a Nutshell

This week in energy is a clash of two transformation speeds: in Krakow, construction begins on a gas-fired cogeneration plant set to end coal use at the city's district heating utility, while in China a state-owned conglomerate is pouring hundreds of millions of dollars into green hydrogen and ammonia on a scale Europe can currently only dream of. One project is measured in hundreds of millions of zloty, the other in hundreds of millions of dollars, but both show that moving away from coal is today taking on very concrete, quantifiable forms. Here's what connects these two seemingly distant projects.

01 · District Heating & Cogeneration

Krakow Moves Away from Coal – PGE's New PLN 886 Million Cogeneration Plant

On September 24, 2026, PGE Energia Ciepła laid the cornerstone for a new cogeneration source at the Krakow combined heat and power plant [1]. Thanks to ten gas engines with a combined capacity of roughly 100 MWe and 100 MWt, the installation will cover around one-fifth of the demand on the city's district heating network. The investment, valued at PLN 886 million, is being carried out by a consortium of Unibep and SBB Energy [1].

The impact should be felt not only in the company's finances but also in the quality of the air over Krakow – the city's annual coal consumption is expected to fall by more than 200,000 tonnes [1]. This is just the first step in a much broader modernization program for Krakow's district heating system, worth nearly PLN 3 billion and spread out through 2034 [1]. Ten gas engines replacing coal-fired units is a concrete, measurable step toward decarbonization, even though natural gas is still far from a zero-emission fuel. In the Polish context, where coal still powers a significant share of urban heating networks, a fuel switch like this is nonetheless a major qualitative leap – and a signal that gas-fired cogeneration is becoming a genuine transitional pathway for large heat operators. For heating utilities, it's still a significant change, since gas engines make it possible to generate electricity and heat simultaneously with far higher efficiency than traditional coal boilers, and the investment itself illustrates just how much capital is now required to move district heating away from coal.

02 · Hydrogen Technologies

China Isn't Slowing Down on Hydrogen

While Polish district heating is only just bidding farewell to coal, China is several steps ahead. On September 25, 2026, the state-owned conglomerate China Huadian began construction of a facility to produce 100,000 tonnes of renewable ammonia per year in the northeastern part of the country [2]. The project is valued at 4.41 billion yuan, or roughly $620 million [2].

This is yet another example of the rapid expansion of China's green hydrogen sector, driven by large, state-owned energy conglomerates [2]. The scale and pace of these investments show that China is consistently building a technological and manufacturing edge in alternative fuels. Ammonia, as a hydrogen carrier that's easier to transport and store than gaseous hydrogen, is becoming an increasingly important piece of the puzzle – and is showing up more and more often in announcements of new, multimillion-dollar investments out of the Middle Kingdom. In Europe, projects of this scale are still few and far between, which only underscores just how wide the gap currently is between the pace of investment in Asia and what's happening on the Old Continent.

A coal-fired power plant with its characteristic cooling towers – a symbol of the energy source that both Krakow and China are gradually replacing with lower-emission technologies.
Source: Pixabay · Author: NoName_13 · License: Pixabay Content License (bezpłatna do użytku komercyjnego, atrybucja niewymagana)

03

Two Speeds, One Direction

Krakow and northeastern China are separated by thousands of kilometers and vastly different budget scales, but the direction of change is the same – moving away from coal and seeking lower-emission energy sources, whether in the form of gas-fired cogeneration or green hydrogen and ammonia. For Poland's district heating sector and its fledgling hydrogen industry, this is both an inspiration and a reminder that competition for technology and capital in low-emission energy is now playing out on a global scale, not just a local or European one. For visitors to industry trade fairs, both threads – heating and hydrogen technologies – are today among the fastest-growing segments of low-emission energy, and well worth watching closely.

Summary

Summary

This week shows that the energy transition is advancing on many fronts at once – from local, down-to-the-zloty investments in district heating to global technology races in hydrogen and ammonia. It's exactly this kind of interplay between local and global trends that will be up for discussion at the upcoming edition of the trade fair. If you'd like to talk in person about how these trends translate into the Polish energy and heating market, join us at Future Energy Week Poland – Targi Transformacji Energetycznej i Technologii Niskoemisyjnych.

Invitation

Gas-fired cogeneration in Krakow and China's race for green hydrogen and ammonia are just a taste of what's waiting for you at Future Energy Week Poland. You'll meet companies from the district heating, cogeneration, hydrogen technology, and power grid sectors, talk about real-world investments, and see how the Polish market stacks up against the global leaders of the transition. Save the date and stay on top of where low-emission energy is heading.

Future Energy Week Poland 2026
Future Energy · weekly review · 2026-09-30