PGE Group and Orsted Secure Final Key Contract for the 1.5 GW Baltica 2 Offshore Wind Farm

Credit: PGE/Orsted

In a significant step toward realizing the ambitious 1.5 GW Baltica 2 offshore in the German , and Orsted have successfully inked a pivotal agreement with Steelwind Nordenham for the supply of foundations. This marks the culmination of contracts for key components, bringing the project to Tier 1 status, a significant milestone in the investment process.

Wojciech Dąbrowski, President of the Board of PGE Polska Grupa Energetyczna, expressed his confidence in the project's progress, stating, “We have already secured all key components for the offshore part of Baltica 2. The finalised tenders and signed agreements clearly show how advanced the project preparations are. This investment of 1.5 GW capacity is the biggest energy project to date based on renewables, and we are talking about the first stage only.”

Agata Staniewska, Managing Director of Orsted Offshore Poland, highlighted the challenges encountered during the bidding process, taking place in a time marked by macroeconomic turbulence stemming from the war in Ukraine, supply chain disruptions, inflation, and rising interest rates. However, she underlined the collective achievement in finalizing Tier 1 contracts for the offshore scope of the project.

“The bidding process for all key components for Baltica 2 took place in 2022 and early 2023, a time of unprecedented macroeconomic challenges due to the war in Ukraine, supply chain problems, high inflation, and rising interest rates,” Staniewska explained. “Despite these challenges, we were able to finalize all Tier 1 contracts in the offshore scope. This is a major success that would not have been possible without the cooperation of our business partners.”

She further highlighted the willingness of already contracted suppliers to collaborate with Polish sub-suppliers, emphasizing the positive impact on the creation of new industries in Poland. Staniewska noted, “This is an important impulse to create new industries in our country.”

The chosen supplier, Steelwind Nordenham, specializes in the manufacturing of monopiles, which are foundational components for offshore wind turbines. Baltica 2, with its 107 turbines and four offshore substations, will rely on Steelwind Nordenham to provide 34 monopile foundations, with production slated to commence in the second half of 2025.

Earlier in the project's development, PGE and Orsted had entered into a contract for 77 monopiles for turbines and offshore substations with the Navantia and Windar strategic alliance. The production of these structures is set to begin in 2024.

In an additional endeavor, independently of the supply contract for Baltica 2, Windar is planning the construction of a facility in Szczecin, northwest Poland, which will manufacture towers. This facility is expected to be operational by 2026, contributing to the growth of the sector in Poland.

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