Polish oil and gas company Orlen has taken a conditional investment decision for the 1.2GW Baltic Power offshore wind farm, to be located 23km off the Polish coast.
The decision will help finalise the wind farm’s design stage. Once the financing process is completed and other permits are received, construction on the project could begin later in 2023.
To be developed by Orlen and Canadian utility Northland Power, which hold 51% and 49% stakes respectively, the wind farm entails a total investment of €4.73bn (C$6.96bn). It is one of the most advanced offshore wind projects in Poland.
The project will be powered by 76 turbines, each with the capacity to generate 15MW of electricity.
Danish wind turbine maker Vestas was selected as the preferred supplier for the project in September 2022. It will supply its V236-15.0MW turbines.
Expected to begin operations in 2026, the Baltic Power offshore wind farm will generate enough clean electricity to power 1.5 million Polish households.
In May 2023, construction of the onshore transmission infrastructure began in the Choczewo municipality in Poland. It will act as a hub for cable lines transmitting electricity from the offshore site.
Orlen management board president Daniel Obajtek stated: “The energy transition results in clean, accessible energy and a competitive economy. By 2030, ORLEN Group will have made a leap in the development of renewable energy sources, reaching 9GW of installed capacity.
“Offshore wind energy will be a key element of this development. As regional pioneers in this area, we have had to do an enormous amount of preparatory and administrative work and build new competencies that we will be able to use in future projects. Today’s decision is a milestone that brings us significantly closer to achieving the company’s strategic objectives.”
Financing will be secured through a project finance formula in which the repayment of liabilities will be based on future financial surpluses generated.
