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ORLEN’s Baltic Power offshore wind farm with conditional investment green light

The Supervisory Board of ORLEN, a Polish energy company, has made a conditional investment decision for the Baltic Power offshore wind farm, enabling the project’s design phase to be finalised (11 August).

The project’s construction phase is planned to start later this year following the completion of a financing process and construction permits, ORLEN said in a press release.

“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 9 gigawatts (GW) 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,” said Daniel Obajtek, President of ORLEN’s Management Board.

The Baltic Power project, in which ORLEN holds more than 51 per cent of shares, is the most advanced offshore wind farm project under construction in Poland. The project’s total finance plan is estimated at around 4.73 billion euros and covers capital expenditures and contingency (4.05 billion euros), as well as financing costs and additional reserves.

The project’s financing will be carried out under the Project Finance formula, a model in which repayment of liabilities will be based on future financial surpluses generated by the project.

The Baltic Power wind farm will be built about 23 kilometres (km) from the coast, at the level of Łeba and Choczew, which will consist of 76 “state-of-the-art wind turbines” with a unit capacity of 15 megawatts (MW). It is planned to be completed in 2026 and is estimated to power more than 1.5 million households across the country.

The project has all the permits for the farm’s onshore section, as well as a permit for the construction of an offshore power connection to bring power from the farm to the land. It also has secured contracts for all key components of the farm – including turbines, offshore and onshore power substations, cables, and foundations – along with their production, transportation, and installation.

Construction permits for the offshore part of the project remain as one of the conditions for reaching a final investment decision, ORLEN noted.

The construction of the Baltic Power offshore wind farm is considered one of ORLEN Group’s key projects for achieving its goal of 9 gigawatts (GW) of installed renewable capacity by 2030.

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