Northland Power and its partner Orlen have secured project financing of C$5.2bn ($3.87bn) financing for their 1.2GW Baltic Power offshore wind project in Poland.

The partners have signed credit facility agreements in this regard with a syndicate consisting of 25 Polish and global financial institutions. These include international and domestic commercial banks, and various export credit agencies and multi-lateral agencies.

The project financing amount represents 80% of the Baltic Power project’s estimated total capital cost of C$6.5bn ($4.84bn) after including contingencies.

According to Northland Power, the company and Orlen have already secured the remaining capital, which will be contributed at the financial close.

Northland Power said that the Baltic Power offshore wind project is on track to achieve financial close in the coming days. This will be subject to the fulfillment of all necessary conditions precedent to secure financing.

Northland Power chief financial officer Pauline Alimchandani said: “This financing is Northland’s first offshore wind project in Poland.

“We would like to thank all stakeholders for working together to achieve this significant milestone. Once operational, Baltic Power will be Northland’s fourth offshore wind project in Europe and will provide significant high quality, inflation-protected, long-term contracted Adjusted EBITDA and Free Cash Flow to our business and shareholders.”

Situated in the Baltic Sea, roughly 22km off the Polish coast near Plaża Wydmy Lubiatowskie, the Baltic Power offshore wind project has obtained all necessary environmental approvals and major construction permits.

Construction activities have already commenced, including the fabrication of critical components. The project is anticipated to reach full commercial operation in the latter half of 2026.

ORLEN CEO and management board president Daniel Obajtek said: “Despite the highly dynamic environment, we are on track with the Baltic Power project’s preparation, with the goal of providing clean energy to more than 1.5 million households as early as 2026.

“Securing financing for the project demonstrates that the financial markets also have a positive view of ORLEN’s strategic investments through 2030.”

Last month, ORLEN Group’s supervisory board arrived at a conditional investment decision on the Baltic Power offshore wind project in which the Polish firm has a stake of 51%. Its joint venture partner Northland Power holds the remaining stake of 49%.