The project joint venture partners Equinor (50%) and Polenergia (50%) have reached financial close for the Bałtyk 2 and Bałtyk 3 projects located in the Baltic Sea off Poland. Final investment decisions for both projects were taken by the project joint venture partners on 19 May.
Two project financing packages of over €3 billion for each of Bałtyk 2 and Bałtyk 3, including ancillary facilities, have been secured.
The offshore wind projects were awarded Contracts for Difference (CfD) in 2021, securing power prices at approximately €71 per MWh (2021 price) for 25 years, with inflation indexation. The projects support Equinor’s expected double-digit nominal equity rate of return for renewables and low carbon investments.
Equinor is responsible for the construction phase and will be the operator of the two offshore wind farms. Onshore construction work is ongoing, fabrication of key components has started, while marine operations will start next year. Total power capacity of the projects is 1440 MW, while full commercial power production is expected for 2028. The individual project finance packages will fund the capital investment and the other expenses of each of the projects during the construction process totalling approximately EUR 7.2 billion.
Senior vice president for Renewables in Europe, Trine Borum Bojsen:
“Building a profitable renewables business through safe execution and operations is key to delivering on Equinor’s strategy. With financial close reached for Bałtyk 2 and Bałtyk 3, the last important milestone is passed ahead of full-scale construction. We appreciate the strong interest and support from lenders. This underpins the attractiveness of the projects and the confidence in Polenergia and Equinor as developers.”
Bałtyk 2 and Bałtyk 3, developed by Equinor and Polenergia, the largest private energy group in Poland, have been developed in parallel, largely within the same time schedule, and consist of 100 fixed bottom turbines, placed 22-37 km off the Polish coast.
