Orlen Group has made a final investment decision on the construction of its first offshore farm

Orlen Group has made a final investment decision to build Poland’s first 1.2 GW Baltic Power wind farm. The investment will be carried out jointly with Canada’s Northland Power. The investment decision means that the corporation has a set of construction permits and has secured all farm components and financing for the project. As part of the preparation of installation infrastructure for the offshore industry, the corporation has also started construction of a terminal in Swinoujscie.

“Today we are taking an important step towards energy transformation, we are starting the construction of the first offshore wind farm in the Baltic Sea with a capacity of 1,200 MW, worth PLN 20 billion. The investment will begin production in 2026. But that’s not the only announcement today. Today we are also starting to build Poland’s first installation port in Swinoujscie, one of the most modern in Europe, which opens up opportunities for us to build more farms in the Baltic. If we hadn’t created the logistics to secure the business, we wouldn’t have been able to get financing for this investment,” said CEO Daniel Obajtek during the announcement of the final investment decision.

The Baltic Power farm will generate electricity equivalent to 4,000 GWh, or about 3% of Poland’s current electricity production. It will help avoid emissions of about 2.8 million tons of CO2 per year. Installation of the farm’s foundations will begin in 2024, and in 2025, 76 Vestas wind turbines will stand on the farm, with a unit capacity of 15 MW and a height of more than 250 meters. An onshore substation is already under construction to receive energy from the sea. Baltic Power has agreements with major contractors and suppliers to secure the entire supply chain – the manufacture, transportation and installation of all key components of the farm. The project’s total budget is estimated at about €4.73 billion and includes capital expenditures with insurance of about €4.05 billion, as well as financing costs and a supplementary reserve. In the initial five years of operation, the Baltic Power project could generate additional average annual free cash flow of about €140 million, the material recalled.

“Most of Northland Power’s growth has come from the construction of offshore projects in Europe over the past 10 years. I am proud of what we have already achieved with this project. Baltic Power is one of the largest offshore projects in the world today. This project was able to secure one of the best supply chains in a difficult market. Closing the financing is a significant milestone, but we are now moving into the construction phase,” added the Northland Power CEO Mike Crawley.
(…)

The Orlen Group operates refineries in Poland, the Czech Republic and Lithuania, has retail operations in Central Europe, mining operations in Poland, Norway, Canada and Pakistan, as well as energy production, including from renewable energy sources, and natural gas distribution. As part of building a multi-utility conglomerate, the company has finalized acquisitions of Energa, Lotos Group and PGNiG. Its consolidated sales revenue reached PLN 277.56 billion in 2022. The company has been listed on the WSE since 1999; it is part of the WIG20 index.

Source

Our privacy policy