The Orlen Group, in a crucial move for Poland's renewable energy landscape, has reached its final investment decision (FID) on the 1200MW Baltic Power offshore wind farm, with the project anticipated to be operational by 2026. This venture is being executed in collaboration with Canada's Northland Power.
Securing the FID implies that the project, equipped with essential construction permits, key components and financing, is now ready for execution. Reflecting Orlen's commitment to bolster the offshore industry, the company has also initiated the construction of an installation terminal in Świnoujście.
Daniel Obajtek, Orlen's Chief Executive, remarked, “We are at a pivotal juncture for both the Orlen Group and Poland's broader energy sector. Despite various challenges, we remain steadfast to our ambitious timeline. The Baltic Power offshore wind farm not only marks the onset of Poland's first offshore wind farm within three years, but it also paves the way for subsequent projects.”
Baltic Power, once operational, will generate about 4,000 GWh of electricity, accounting for nearly 3% of Poland's existing electricity output. This project is expected to counteract around 2.8 million tonnes of carbon emissions annually. The installation will feature 76 Vestas wind turbines, each with a 15MW capacity, reaching heights surpassing 250 metres. The commencement for laying foundations is slated for 2024.
The overall financial outline for the project is pegged at around €4.73bn, inclusive of capital expenditures and other associated costs. Baltic Power's financing approach leans on the Project Finance framework, with loan agreements summing up to about €4.4bn, secured with 25 global and Polish financial institutions.
Mike Crawley, Northland Power's Chief Executive, voiced his enthusiasm: “In partnership with Orlen, we are eager to kick off the Baltic Power project's construction phase. Upon fruition, this wind farm will cater clean energy to more than 1.5 million households, solidifying Poland's stride towards its energy transition objectives.”
Orlen has emphasized the significance of its partnerships in this venture, collaborating with global offshore wind specialists, further enriching local content within the project.
