Equinor and Polenergia have reached financial close for the Bałtyk 2 and Bałtyk 3 projects, securing two project financing packages of over $3.4 billion for each offshore wind farm.
The offshore wind projects were awarded Contracts for Difference (CfD) in 2021, securing power prices at approximately $80.29 (€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 start next year. Total power capacity of the projects is 1440 MW, enough to power two million Polish homes.
Full commercial power production is expected in 2028. The individual project finance packages will fund the capital investment and the other expenses of each of the projects during the construction process totaling approximately $8.12 billion (€7.2 billion).
Danske Commodities, an Equinor subsidiary, will provide route-to-market services including balancing and power offtake for the first three years of operations.
Final investment decisions for Bałtyk 2 and Bałtyk 3 were taken by the project joint venture partners on May 19.
“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,” said Trine Borum Bojsen, Equinor’s senior vice president for Renewables in Europe.