Equinor and Polenergia have reached financial close for the 1440MW Bałtyk 2 and Baltyk 3 offshore wind projects in Poland.
Two project financing packages of over €3 billion for Bałtyk 2 and over €3bn for Bałtyk 3, including ancillary facilities, have been secured.
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 €7.2bn.
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 wind farms are project financed with gearing of approximately 80%. 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 begin next year.
Full commercial power production is expected in 2028. Danske Commodities, an Equinor subsidiary, will provide route-to-market services including balancing and power offtake for the first three years of operations.
Following strong interest from lenders, Bałtyk 2 and Bałtyk 3 have secured competitive terms and conditions.
The final group, comprising of around 30 financial institutions, includes many of Equinor’s core banks, the Nordic Investment Bank and the European Investment Bank.
Final investment decisions for Bałtyk 2 and Bałtyk 3 were taken by the project joint venture partners on 19 May.
Senior vice president for Renewables in Europe Trine Borum Bojsen said: “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.”
Country manager in Poland Michał Jerzy Kołodziejczyk added: “Bałtyk 2 and Bałtyk 3 represent the beginning of a new era in Poland’s offshore wind energy development.
“These wind farms are set to contribute to Poland’s industrial future by producing renewable electricity for Polish households, creating employment opportunities, and enhancing both energy security and the energy transition. We will collaborate with industry partners to ensure their delivery is safe and efficient.”
Bałtyk 2 and Bałtyk 3, developed in a 50-50 joint venture partnership by Equinor and Polenergia, will each have a capacity of 720MW.
The two wind farms, developed in parallel, will consist of 100 fixed bottom turbines, placed 22-37km off the Polish coast.