Reacting to media publications about the Biorefinery project

INA has several projects in Sisak that are being considered. The Biorefinery is the largest of them, but there are also the biogas plant and the production of clean hydrogen. Currently, INA is in the process of deciding which direction to take, but one project does not exclude another. The decision has not yet been made, but one thing is certain – Sisak will be our industrial hub for renewable energy sources, while traditional production will stay in Rijeka, which will be also upgraded with renewable sources such as the production of clean hydrogen for own needs and a solar power plant. INA has already started building solar panels in Sisak, and the reason why the decision regarding other projects has not yet been made is since the situation on the market has drastically changed in the last few years. For example, due to the rising costs of building materials, the cost of the investment in the Biorefinery project is now significantly more expensive than was originally planned. Concerning the Biorefinery, the demand for bioethanol presents a risk, as right now, due to the global energy crisis, it is not entirely clear in which direction the market will be developing. It is true that this is the project the Government deemed strategic, and it was also supposed to be co-financed through funds from the National Recovery and Resilience Plan, but this does not mean that the investment decision should not take into consideration all the changed conditions, especially the cost that has increased significantly and called into question the profitability of the investment. INA is a market-oriented company and does not want to make a rash decision that could have an adverse impact on its financial operation in the future. The described business logic is the only reason why no investment decision has been made yet, and INA considers the theories about obstructing the project to be misguided.