Baltic Power project of 1.1 GW receives financing in Poland

Poland’s Baltic Power offshore wind project of 1,140 MW situated in the Baltic Sea, has reached a significant milestone by receiving financing from a group of 25 financial institutions. The project is being built by a 51:49 joint venture between Polish oil refiner PKN Orlen  and Canada’s Northland Power In. Overall, the cost of the project is estimated at about $5.04 billion which includes capital expenditures with insurance of $4.3 billion, as well as financing costs and an additional reserve.

Reportedly, the lending syndicate comprises Polish and international commercial banks, export credit agencies and multilateral institutions, including the European Investment Bank, European Bank for Reconstruction and Development, Euler Hermes, Export and Investment Fund of Denmark and Export Development Canada. Furthermore, Orlen has signed a conditional agreement with Vestas Wind Systems for the turbine’s delivery.  The wind farm is anticipated to start operations in 2026. Necessary construction licences and environmental approvals have been secured. The wind power plant will be situated about 22 km off the Polish coast near Plaza Wydmy Lubiatowskie and will feature 76 turbines of 15 MW each.

In September 2023, Boskalis won two big contracts for the transportation and installation of the export and array cables for the 1.5 GW Baltica 2 offshore wind farm in the Polish section of the Baltic Sea. Polish utility PGE Polska Grupa Energetyczna SA and Denmark’s Ørsted A/S gave two deals to the company. Reportedly, the order was valued at over $322.5 million.