A milestone for the Polish power sector

BayernLB participated in the arrangement of the financing for the construction, operation and maintenance of Baltic Power – the first utility scale offshore wind farm located 23 km north of the Polish coastline, near Choczewo and Łeba in the Baltic Sea. Together with 20+ banks, BayernLB acted as Mandated Lead Arranger, Original Senior Lender and EUR LC Issuing Bank.

The offshore wind farm with a capacity of up to 1.2 GW is an important milestone in the development of the Polish power sector. The construction of 76 of the most powerful European wind turbines from Vestas and associated infrastructure is scheduled to commence in September 2023 and reach full operations in 2026. The energy generated by the wind park once fully operational will equate to the electricity consumption of over 1.5 million households.

The Baltic Power offshore wind farm is a landmark transaction for the sponsors PKN ORLEN and Northland Power, supporting the transition to a low-carbon economy.

Today’s announcement is a major achievement for Northland, our partners and the Baltic Power project,” said Mike Crawley, President and Chief Executive Officer of Northland. “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.”

“We are in the final stages of preparing a large-scale project that will significantly change Poland’s energy mix. Our robust financial footing and extensive international experience in managing large-scale projects equip us to handle this process effectively. 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,” noted Daniel Obajtek, CEO and President of the ORLEN Management Board.