Orsted and Polish energy producer ZE PAK have signed a letter of intent to participate in Poland’s upcoming auction seabed leases in the Polish Baltic Sea.
The next step is for the two companies to form a 50:50 joint venture, which will be subject to merger clearance.
If successful in the lease auction, the partners intend to jointly bid into Poland’s future offshore wind Contract for Difference auctions planned for 2025 and 2027.
ZE PAK supervisory board chairman Zygmunt Solorz said: “Wind energy is one of the pillars of ZE PAK’s strategy to switch to zero-emission energy production and I am glad that we have the opportunity to cooperate with Orsted.
If you are serious about offshore wind energy, then Orsted, the world’s no. 1 in this field, is the best possible partner.
“The potential, achievements and experience of Orsted in the production of clean energy are impressive and can undoubtedly support the energy transformation of both ZE PAK and the entire Polish energy sector.”
Orsted chief commercial officer Martin Neubert said: “With offshore wind as the backbone, Poland has made the bold decision to transform its energy system to reduce carbon emissions and to make sure that sufficient and cost-competitive renewable power supply is available for Polish businesses and households in the coming decades as coal-fired power stations are being retired.
“With very strong local know-how, leading global experience and joint ambitions, ZE PAK and Orsted can support Poland in making the transition from fossil-based to renewable energy sources happen while creating thousands of local jobs and re-skilling and up-skilling the workforce from the coal industry to renewables.”
Warsaw-listed ZE PAK is Poland’s fifth largest power producer and has started its transition from fossil-based to renewable energy generation.
ZE PAK has decided to phase out coal-fired power generation no later than 2030 and intends to join the market for renewable hydrogen to help decarbonize other sectors such as heavy transportation and heavy industry.
ZE PAK management board president Piotr Wozny said: “At ZE PAK, we try to work with concrete opportunities and take real actions to switch to clean energy production and reduce carbon emissions.
“Like Orsted, we have our ‘best’ and ‘first’ – we have just completed the construction of the largest solar farm in Poland, we will be the first to start producing green hydrogen, we are a leader in reducing carbon emissions and most importantly we will be the first in Poland to move away from coal.
“Offshore wind energy will be an important part of ZE PAK’s transformation into a producer of clean and green energy.”