Northland Power and partner Orlen have signed a credit agreement for the Baltic Power offshore wind project in Poland.
The deal secures an equivalent of $5.2bn of non-recourse green financing that adheres to Northland’s green financing framework covering construction and a 20-year term.
The non-recourse project financing will be provided by 25 international and local commercial banks, and multiple export credit players and multi-lateral agencies.
The project is expected to reach financial close in the coming days, upon satisfaction of all relevant conditions precedent to the financing being achieved.
Northland has been co-developing Baltic Power with Orlen since acquiring a 49% equity stake in the site in 2021.
The project financing amount of $5.2bn represents 80% of Baltic Power’s $6.5bn estimated total capital cost (inclusive of contingencies).
The remaining capital will be contributed by the development partners at financial close and has already been secured.
Northland’s share of equity for the project was fully secured through the green hybrid bond issuance in June 2023 and existing corporate liquidity.
“Today’s announcement is a major achievement for Northland, our partners and the Baltic Power project,” said Northland president and chief executive Mike Crawley.
“This milestone demonstrates the support from the global financial community and reflects their confidence in Northland and our ability to develop, procure, construct and finance large and complex offshore wind projects.
“Despite the recent challenges for the offshore wind sector in some markets, Northland continues to find a way to advance large-scale offshore wind projects with attractive economics.”
Northland’s chief financial officer Pauline Alimchandani added: “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.”
The project is located in the Baltic Sea, approximately 22km off the Polish coast near Plaża Wydmy Lubiatowskie and has obtained all environmental approvals and major construction permits.
Building work has commenced, with fabrication of certain key components under way.
Full commercial operations are expected in the latter half of 2026.