Northland Power Inc. has signed an agreement with PKN ORLEN S.A. acquiring a share of 49 per cent, subject to regulatory approvals, in the Baltic Power offshore wind project in the Baltic Sea with a cumulative offshore wind capacity of up to 1.2 GW. The Baltic Power project is already under development and is located about 23 km off the coast of Poland.
NothThe Baltic Power offshore wind project secured its location permit, signed its grid connection agreement and filed its environmental permit in 2020. Northland plans to invest close to 290 million Polish zloty or 100 million in Canadian dollars. This consists of the purchase price as well as the contribution towards development of the project. Construction activities will begin in 2023, with commercial operations expected to start from 2026.
With the new partnership, Northland and PKN Orlen have agreed to develop the Baltic Power project together. The development is expected to secure a contract for difference offtake agreement for 25 years. PKN Orlen, part of the Orlen group, and operates in five European countries and Canada. It is one of the largest companies in Eastern Europe, with 3.2G W of generation capacity. With the completion of the Baltic Power project, Northhland’s total gross offshore wind capacity in Europe will increase up to approximately 2,400 MW (1,500 MW net).
Northland plans to expand its European offshore wind footprint with a strategic partnership in Poland. An attractive investment destination, Poland has a clear roadmap for offshore wind and other renewable technologies such as onshore wind and solar.