On 29 November 2021, Kraków Water signed an agreement with the National Fund for Environmental Protection and Water Management in Warsaw to implement a project called "Modernization of electrical, heat and biogas management on the premises of the Płaszow Sewage Treatment Plant in Kraków, Kosiarzy 3”.

This project will be implemented using funds from the European Economic Area Financial Mechanism as part of the Environment, Energy and Climate Change Program. The program area within which the project will be implemented is Renewable Energy, Energy Efficiency, Energy Security. The immediate requirement/result of the program is to construct/modernize municipal heating systems and eliminate individual heat sources.

The scope of the project includes the following actions:

• convert the biogas plant to supply existing and planned cogeneration units by using spherical tanks for storing biogas and averaging its composition over time [instead of cylindrical vessels with a limited control range (60% to 100%) of tank capacity]
• add 2 cogeneration units of 800 kW each, with low-emission engines burning biogas emitting nitrogen oxide (NOx) at max. 250 mg/Nm³ of exhaust gas
• expand the low-parameter heating network including the planned use of cogeneration heat to heat buildings already connected to the heating network, heat sewage sludge reception stations and convert, as planned, substations in an employee welfare building also housing the control room and workshops
• build a low-temperature heating network of preinsulated  steel tubes in a PEHD jacket running in the ground
• use waste heat from the sludge incineration plant for heating purposes
• install a gas (biogas) system supplying cogeneration units
• modernize the sewage treatment plant power supply system

The measures taken will make the district heating system an "efficient system", i.e. one using at least 50% of renewable energy and waste heat for heat production in accordance with Directive 2012/27/EU. It will also be 100% of heat from cogeneration.

The total cost of the project is PLN 12,144,156.54, with the value of the co-financing obtained of PLN 4,442,984.10.