ORLEN Group Reaches Conditional Investment Decision for Baltic Power Offshore Wind Farm
Posted 14/08/2023 11:32
The supervisory board of the ORLEN Group has announced a conditional investment decision for the ambitious 1.2GW Baltic Power offshore wind farm located in Poland. This marks a crucial step towards advancing the project's design phase.
The construction phase of the Baltic Power offshore wind farm is slated to commence later in 2023, contingent upon the successful acquisition of construction permits and the completion of the financing process. Situated 23km off the Polish coastline, near Choczewo and Łeba, the offshore wind facility is being developed by Baltic Power, a joint venture between PKN ORLEN and Northland Power.
Upon its completion in 2026, the Baltic Power project is projected to provide clean energy to over 1.5 million Polish households. The endeavor is accompanied by a comprehensive finance plan of approximately €4.73 billion. This plan encompasses capital expenditures, contingencies, financing costs, and additional reserves.
Crucially, the Baltic Power offshore wind project has already secured all the necessary permits for its onshore components, as well as a permit for the construction of an offshore power connection. Contracts for crucial components, including turbines, offshore and onshore substations, cables, foundations, and their manufacturing, transport, and installation, have also been secured.
The final investment decision is contingent upon fulfilling various conditions, including obtaining construction permits for the offshore segment of the project.
ORLEN's President of the Management Board, Daniel Obajtek, highlighted the company's commitment to renewable energy development: "By 2030, ORLEN Group will have made a leap in the development of renewable energy sources, reaching 9 GW of installed capacity. Offshore wind energy will be a key element of this development. Today’s decision is a milestone that brings us significantly closer to achieving the company’s strategic objectives."
Additionally, Vestas, a prominent wind turbine manufacturer, has signed a conditional agreement to supply wind turbines for the Baltic Power offshore wind project, further solidifying the initiative's progress.