November 29, 2023


Moving Forward

Baltic Power offshore wind farm receives conditional investment decision

ORLEN’s Supervisory Board has built a conditional expenditure final decision for the Baltic Electrical power offshore wind farm, enabling the finalisation of the layout stage. The construction section is prepared to start off later this yr after the completion of the funding process and completion of development permits. The joint financial commitment of ORLEN and Northland Electricity, at this stage, is the most highly developed offshore wind project in Poland.

“The power changeover benefits in cleanse, accessible vitality and a aggressive financial system. By 2030, ORLEN Group will have built a leap in the enhancement of renewable energy resources, achieving 9 GW of put in ability. Offshore wind strength will be a important ingredient of this advancement. As regional pioneers in this location, we have experienced to do an monumental quantity of preparatory and administrative get the job done and make new competences that we will be in a position to use in upcoming jobs. Present day choice is a milestone that delivers us substantially nearer to accomplishing the Company’s strategic targets,” pressured Daniel Obajtek, President of the Management Board of ORLEN.

The Baltic Electrical power project, in which ORLEN holds far more than 51% of shares, is the most state-of-the-art offshore wind farm venture less than development in Poland. The whole finance strategy for the Venture is approximated at ca. €4.73 billion and handles cash expenditures and contingency (in the sum of €4.05 billion), as well as funding expenses and added reserve.

The shareholders of the financial investment suppose that its financing will be carried out under the Undertaking Finance method, a model in which repayment of liabilities will be based on upcoming fiscal surpluses created by the job. The Undertaking Finance formula is significantly favourable for investments that need important expenditure and time to attain comprehensive capacity, this sort of as the design and operation of off-shore wind farms. At the very same time, it fits in with the monetary assumptions of the up-to-date ORLEN2030 approach.

The Baltic Electric power project has all the permits for the onshore element of the job, as effectively as a allow for the building of an offshore electricity link to carry electrical power from the farm to land. It also has secured contracts for all critical elements of the farm – which includes turbines, offshore and onshore substations, cables and foundations – along with their manufacture, transportation and set up. One of the circumstances for reaching a remaining financial investment final decision continues to be the acquisition of design permits for the offshore aspect of the venture.

The building of the Baltic Power offshore wind farm is one of the ORLEN Group’s critical assignments for reaching its strategic purpose of 9 GW of set up renewable power capability by 2030. The farm will be constructed about 23 km from the coastline, at the stage of Leba and Choczew, and will consist of 76 point out-of-the-artwork wind turbines with a device ability of 15 MW. With the completion of building in 2026, the Baltic Electricity farm will begin producing strength to power much more than 1.5 million households in Poland.



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