Northland and Orlen secure $5.2bn for Baltic Power offshore wind farm

Northland Power and Orlen have signed a $5.2bn credit agreement for the Baltic Power offshore wind project in Poland.

Northland said that the loan adheres to its green financing framework covering construction and a 20-year term. The financing will be provided by 25 international and local commercial banks, multiple export credit agencies, and multilateral agencies.

The project is expected to reach financial close in the coming days, upon satisfaction of all relevant conditions precedent to the financing being achieved.

Northland has been co-developing Baltic Power with Orlen, since acquiring a 49% stake in the project in 2021. The project financing amount of $5.2bn represents 80% of the $6.5bn projected total capital cost. The remaining capital will be contributed by the project partners at the financial close and has already been secured.

The project’s 25-year CfD offtake agreement is Euro-pegged and includes an inflation indexation feature commencing with the base year of 2021, providing offsetting benefits to the higher inflationary price pressures recently experienced. The project also secured a 15-year operations and maintenance agreement with the turbine supplier, with options to extend.

The project is in the Baltic Sea, approximately 22 kilometres off the Polish coast and has obtained all environmental approvals and major construction permits. Construction activities have started, with the fabrication of certain key components underway.

Full commercial operations are expected in the latter half of 2026. Once operational, Baltic Power will be amongst the largest offshore wind projects globally. It is expected to provide clean energy to over 1.5m Polish households and will play an important role in helping Poland achieve its target of 11GW of installed offshore wind capacity by 2040.

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