29 September 2023

EIFO finances one of the world's largest wind farms in the Baltic Sea

image Photo: Vestas 15 MV turbine under transport. Photo credit: Vestas
Together with a wide range of international banks, The Export and Investment Fund of Denmark (EIFO) has just closed an agreement on the financing of a 1,140 MW offshore wind farm located in Polish waters not far from Danish Island Bornholm.

A large part of Poland's energy consumption comes from burning coal.

With a financing commitment of 1bn EUR for the Baltic Power wind farm in Poland, EIFO contributes to a big leap forward for the green transition, less dependence on coal, and a more secure energy supply in the region around the Baltic Sea.

The wind farm will create local jobs for a large number of Danish suppliers.

"It is Poland's first offshore wind farm and one of the largest of its kind in Denmark's immediate area. It is important for EIFO that we can help create growth for the many Danish suppliers to the wind farm, create jobs in Denmark, and at the same time contribute to one of our neighboring countries becoming greener," says EIFO's CCO, Peter Boeskov.

First of many

The project is the first in a series of wind projects in the area, and the park’s capacity will be 1,140 MW with 76 units of Vestas’ V236-15 MW wind turbines. The V236-15.0 MW is the newest and largest offshore turbine from Vestas. It is built on proven, world-class technology and engineered for efficiency in offshore environments around the world. One turbine is capable of producing enough energy to power up to 20,000 European households.*

Canada’s Northland Power, in a joint venture with Polish PKN Orlen, owns and develops the wind farm. Northland Power has experience with offshore wind and around 1.2 GW in operation. PKN Orlen is one of Poland's largest companies.

‘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.

It is Poland's first offshore wind farm and one of the largest of its kind in Denmark's immediate area
— Peter Boeskov, CCO in EIFO

At Northland, they are also pleased about the financing.

Northland Power president and CEO Mike Crawley says:

“This announcement is a major achievement for Northland, our partners and the Baltic Power project. 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.”

Several large export contracts

There is significant Danish economic interest in the project. In addition to Vestas (and many of the company's 1,800 sub-suppliers in Denmark), there are export contracts for Bladt Industries, Semco Maritime and Cadeler, to name a few.

‘”Together with all the partners of this project, we share a common vision for the energy transition in Poland and we are very pleased to deliver our wind turbines and our knowledge for this landmark project in the Baltic Sea. This project underlines how EIFO plays a crucial role in giving developers access to flexible financial solutions that enable a fast and effective deployment of renewable energy,” says Nils de Baar, President of Vestas Northern & Central Europe.

Several years of dialogue

EIFO has been in dialogue with the project for several years and has thus been part of the financial structuring of the project from an early stage. EIFO participates in the financing together with a number of well-known international banks, other ECAs and IFIs, including the EIB and the EBRD.

The project covers an area of approx. 114 km2, which corresponds to the area of Lisbon. In addition, the project consists of export cable, onshore cable (approx. 7 km), a substation, approximately 6 kilometers of working roads and a 400kV transmission line connecting the project's substation to the power grid.

The project is located 22.5 kilometers from the Polish coast, near the towns of Łeba and Choczewo.

The project is expected to be completed in the second quarter of 2026.

*Calculation is based on name plate capacity divided by energy consumption excluding losses using Eurostat 2021 data.