Equinor, Polenergia Reach Financial Close for Polish Offshore Wind Farms

(Credit: Ole Jørgen Bratland / Equinor)
(Credit: Ole Jørgen Bratland / Equinor)

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.

Current News

Vår Energi, TechnipFMC to Fast-Track Development of North Sea O&G Fields

Vår Energi, TechnipFMC to Fast

First Steel Cut for Rem Offshore’s Third Vard-Built CSOV

First Steel Cut for Rem Offsho

Rem Offshore's Zero-Emission Subsea Construction Vessel Hits Water (Video)

Rem Offshore's Zero-Emission S

Island Offshore Takes Delivery of Revamped Well Intervention Vessel

Island Offshore Takes Delivery

Subscribe for OE Digital E‑News

 
Offshore Engineer Magazine