Northland joins PKN Orlen in 1.2-GW Polish offshore wind project

Canada’s Northland Power Inc (TSE:NPI) will become the offshore wind partner of Polish oil refiner PKN Orlen (WSE:PKN) by acquiring a 49% stake in an up to 1.2-GW project in the Baltic Sea.

PKN Orlen announced today that the Canadian power producer will contribute its experience in the field in order to build and operate a wind park some 23 km (14.3 miles) off the coast of Leba and Choczewo. The Polish company’s subsidiary Baltic Power holds a licence for an area of around 131 sq km (50.5 sq miles) and earlier this month sealed a grid connection deal with Polskie Sieci Elektroenergetyczne SA (PSE). The project is seen to secure a 25-year Contract for Difference (CfD) off-take agreement.

According to a news release, NP Baltic Wind BV, a special purpose vehicle established by Northland Power, will invest some PLN 290 million (USD 78m/EUR 64m) in Baltic Power just this year, after acquiring a minority stake via a series of capital hikes. The sum includes the purchase price for the ownership interest and development expenditures.

The two parties expect to start building works in 2023 and commission the wind farm in 2026.

Northland Power currently owns and operates nearly 1.2 GW of installed offshore wind power generating capacity in the North Sea, including the 600-MW Gemini, 332-MW Nordsee One and 252-MW Deutsche Bucht facilities. The net capacity to Northland in these plants is 890 MW.

The company is also working on the 1-GW Hai Long offshore wind project in Taiwan, some early-stage projects in Japan totalling 600 MW and in South Korea for an additional 1 GW.

(PLN 1.0 = USD 0.269/EUR 0.221)

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