ORLEN Group’s supervisory board has reached a conditional investment decision on the 1.2GW Baltic Power offshore wind farm in Poland.

It will allow the finalisation of the design phase of the Polish offshore wind project.

The construction phase of the Baltic Power project is scheduled to commence later in 2023 following the completion of the construction permits and the financing process.

To be located 23km to the north of the Polish coastline, on the level of Choczewo and Łeba, the offshore wind facility is developed by Baltic Power, a joint venture (JV) between PKN ORLEN and Northland Power.

Upon the completion of the construction in 2026, the project is anticipated to deliver clean energy to over 1.5 million Polish households.

The Baltic Power offshore wind farm involves a total finance plan of about €4.73bn and covers capital expenditures and contingency along with financing costs and additional reserve.

Besides, the offshore wind project has all the permits for the onshore part of the project and a permit for the construction of an offshore power connection.

It has also secured contracts for all key components of the farm including turbines, offshore and onshore substations, cables and foundations as well as their manufacture, transport and installation, said ORLEN.

The final investment decision is subject to several conditions including the acquisition of construction permits for the offshore part of the project.

ORLEN management board president Daniel Obajtek said: “By 2030, ORLEN Group will have made a leap in the development of renewable energy sources, reaching 9 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.”

Separately, Vestas has signed a conditional agreement to deliver wind turbines for the Baltic Power offshore wind project.