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PKN Orlen and GE Renewable Energy sign MoU on offshore wind in Poland

Poland’s PKN ORLEN started a strategic partnership with GE Renewable Energy, one of the world’s leading manufacturers of turbines for offshore wind farms. The cooperation is expected to support PKN ORLEN to compete for new offshore wind leases in Poland.

The parties signed a Memorandum of Understanding (MoU) to strengthen PKN ORLEN’s competitiveness in applying for new concessions for wind farms in the Polish economic zone in the Baltic Sea. Poland is expected to award up to 10.9 gigawatts (GW) of offshore wind projects by 2030 and up to 28 GW of offshore wind by 2050. The agreement can help accelerate the energy transition in Poland by helping the country take full advantage of its offshore wind resources.

The cooperation is the next stage in the implementation of the strategy ORLEN2030, which includes a commitment to the Group’s long-term objective of achieving a net-zero carbon footprint by 2050. Offshore wind energy is one of the pillars of the green transformation of PKN ORLEN.

“We are implementing a strategy that assumes an increase in capacity from renewable energy sources to over 2.5 GW at the end of this decade,” said Daniel Obajtek, President of the Management Board of PKN ORLEN, adding that the company wants to achieve this level mainly by investing in offshore wind energy and, at the same time, expanding the RES portfolio with additional capacity in onshore wind farms.

“The agreement we signed with GE Renewable Energy supports the implementation of these ambitious goals,” underlined Mr Objatek. “The experience gained thanks to this cooperation and the joint involvement in the development of the Polish offshore wind energy sector will make a significant part of the developing offshore market a share of Polish capital in the upcoming concession procedure.”

The government of Poland has announced plans to award up to 10.9 GW of offshore wind by 2030 and offers new sea areas enabling the development of future offshore wind projects. The country’s offshore wind capacity is estimated to be 28 GW by 2050. Poland is also well positioned to serve the broader efforts to develop offshore wind in the Baltic region.

The construction of offshore wind capacities in the Baltic Sea is one of the key development projects of PKN ORLEN in line with its long-term strategy. The company currently owns one license, through its SPV Baltic Power company, which has a concession for the construction of wind farms with a maximum total capacity of up to 1,2 GW. The project is implemented in partnership with Canadian company Northland Power, the construction is planned to start in 2023 and to be completed in 2026. In the upcoming concession procedure, the concern plans to acquire new locations, relying on its own and GE Renewable Energy knowledge and experience.

GE Renewable Energy will work with PKN ORLEN to strengthen cooperation to enhance its industrial capabilities in Poland and competitiveness to compete for new offshore wind leases in Poland. GE Renewable Energy is already an active player in the Polish wind market with over 300 onshore wind turbines delivering 900 MW, with almost half of that coming online since 2018.

“Poland is well-positioned to use offshore wind resources to help accelerate the energy transition,” said Jérôme Pécresse, Senior Vice President of GE and CEO of GE Renewable Energy. “The agreement that we are signing today charts a path to take pragmatic steps that can take full advantage of Poland substantial offshore wind resources to create win-win outcomes in terms of the environment and economic development,” he underlined.

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