Enabling Industrial Establishments in PCK by the Minister's Intervention - Minister to aid in reallocation of industries at PCK site
In the small town of Schwedt, Brandenburg, the PCK refinery is facing a delicate balancing act. Once exclusively reliant on Russian oil, the refinery has been forced to adapt following the end of its partnership with Moscow in response to sanctions. The shift in crude oil sources has brought about significant operational and economic challenges.
The Federal Government's decision to refrain from using Russian pipeline oil has left PCK sourcing up to 20 different types of crude oil from various locations, including Rostock, Danzig, and Kazakhstan. However, these new sources vary in sulfur content, making operations significantly more complex. As a result, the refinery is currently operating at around 80% of its total capacity, a figure insufficient to maintain profitability and causing financial losses.
The economic security of Schwedt, home to roughly 30,000 residents, is at stake. Approximately 20% of the town's population depends on the refinery for employment. The impact extends beyond jobs, with the potential for a wider socio-economic crisis involving small business decline, reduced public funding, increased poverty, social unrest, and demographic shifts due to out-migration.
On the environmental and regulatory front, Brandenburg’s State Environmental Office (LfU) granted PCK an exceptional permit in April 2025, allowing emissions of sulfur dioxide and sulfur trioxide up to five times above normal limits. This special permit was necessary due to the shift from Russian crude to more varied and higher-sulfur oil grades. However, the German environmental NGO Deutsche Umwelthilfe (DUH) has legally challenged this permit, seeking a reduction in PCK's emissions and potentially forcing the refinery to reduce production if successful.
The German Federal Government, recognising the strategic importance of maintaining the refinery's operation for local economic stability and energy security, has extended the trusteeship over the refinery. Minister Daniel Keller (SPD) from Potsdam, has proposed new industrial settlements at the PCK refinery in Schwedt. However, approval from the trustee and management is needed for these proposed industrial settlements.
In summary, the PCK refinery in Schwedt is navigating a precarious situation marked by supply chain disruption, regulatory pressure, and economic risk. The future viability of the refinery hinges on the resolution of these interconnected issues. The refinery's power station remains operational, supporting its energy needs with at least 334 MW capacity, aligning with efforts to keep the refinery running under constrained conditions. The focus of the extension is to maintain the economic operation of the PCK refinery, but without a return to more stable crude oil supplies—potentially including reconsideration of sanctions on Russian oil—the refinery's ability to operate profitably remains jeopardized.
[1] [Bundesverband der Deutschen Stahlindustrie](https://www.bdsi.de/presse/pressemitteilungen/2022/02/2022-02-22-pck-sanierungsplan-fuer-schwedt.html) [2] [Deutsche Umwelthilfe](https://www.duh.de/presse/aktuelles/2022/07/duh-klage-gegen-pck-umweltschaden.html) [3] [PCK Schwedt](https://www.pck-schwedt.de/unternehmen/ueber-uns/kraftwerke/)
- The employment policy of Schwedt is heavily tied to the PCK refinery, as about 20% of its residents depend on it for work.
- The Federal Government's employment policy has led to the PCK refinery sourcing crude oil from up to 20 different locations, causing operational complexities due to variations in sulfur content.
- The community policy of Schwedt faces potential socio-economic crises, including small business decline, reduced public funding, increased poverty, social unrest, and demographic shifts due to out-migration, if the refinery continues to struggle.
- The energy policy of Schwedt is affected by the regulatory challenges faced by the PCK refinery, as the German environmental NGO Deutsche Umwelthilfe has challenged the refinery's special permit for increased emissions.
