Polish energy company Orlen has reached the Final Investment Decision (FID) to build the 1.2GW Baltic Power offshore wind farm, in partnership with Canada’s Northland Power.

Orlen reaching FID indicates the receipt of all necessary construction permits, all major components contracted, and that funding has been obtained.

Baltic Power, the first offshore wind farm in Poland, is estimated to cost around €4.73bn, including all capital expenditures, insurance, and financing costs, to become operational in 2026.

It will feature 76 Vestas wind turbines with a unit capacity of 15MW to generate 4,000GWh of clean electricity, adequate to power nearly 1.5 million houses and eliminate 2.8 million tonnes of CO2 emissions annually.

Baltic Power has signed agreements with key contractors and suppliers to secure a supply chain spanning the manufacture, transport and installation of all critical components.

Last month, Northland Power and Orlen signed loan agreements with 25 Polish and international financial institutions, to secure a total of about €4.4bn.

Orlen CEO and management board president Daniel Obajtek said: “The Baltic Power offshore wind farm represents one of just two such projects in Europe to progress to the implementation phase over the past three years.

“Despite the formidable challenges posed by the pandemic, supply chain disruptions, and military conflict across our eastern border, we have adhered to the ambitious timeline we set from the outset.

“Within three years, we will launch the first offshore wind farm in Poland, but our aspiration is to use our experience and newly established infrastructure to implement further projects.”

Orlen has started construction on Poland’s first offshore wind farm installation terminal at the Port of Świnoujście, which is expected to be completed in 2025.

With wharves and storage yards, the terminal will be designed to support the installation of advanced 15MW or larger wind turbines.

It will initially cater to the Baltic Power project and subsequently, the projects by other developers, along with the company’s future ventures in the Baltic Sea, said Orlen.

Furthermore, Orlen has recently secured licences for the construction of an additional five offshore wind farms, with a cumulative capacity of 5.2GW.

Northland Power president and CEO Mike Crawley said: “As Northland, in collaboration with our partner ORLEN, we are delighted to commence the construction phase of the Baltic Power project.

“Upon completion, the wind farm will supply clean energy to over 1.5 million households, marking a substantial stride towards bolstering Poland’s energy transition goals. We look forward to achieving further construction milestones in the coming months.”