significant funding underscores Poland's commitment to energy transition, strengthening energy security, and fostering economic growth in the Baltic region through large-scale renewable energy investments.
In a landmark move cementing its commitment to low- and zero-emission generation capacities, ORLEN has announced a secured financing package of approximately PLN 3.5 billion from the National Recovery Plan (KPO). The funds, facilitated through agreements signed with the state development bank Bank Gospodarstwa Krajowego (BGK), are specifically earmarked for the Group's ambitious offshore wind initiatives in the Baltic Sea.
This financing is a crucial step in the realization of ORLEN's strategy to materially strengthen the energy security of Poland and the wider region. According to Ireneusz Fafara, President of the Management Board and CEO of ORLEN, the Baltic Sea is rapidly transforming into the "energy hub of the entire region."
The substantial funding is strategically divided across ORLEN’s leading offshore projects. PLN 900 million is allocated to the advanced Baltic Power offshore wind farm, which is being developed in partnership with Northland. The remaining funds are designated for the Baltic East project, which is the most advanced development in ORLEN's second phase of offshore projects.
The secured capital is intended to finance the offshore scope of these projects. This includes essential expenditure related to the manufacture, delivery, and installation of wind turbines and foundations, the core components of the massive infrastructure required for offshore wind electricity generation.
The decision highlights the crucial role of the KPO in supporting projects that deliver broad economic benefits. Prof. Marta Postula, First Vice-President of the Management Board of Bank Gospodarstwa Krajowego, emphasized the wider economic impact, noting that offshore wind farms demand "a wide range of advanced competences," spanning energy, logistics, and marine engineering.
"The benefits of their construction and operation go beyond the traditional supply chains of the energy sector, initiating the development of numerous branches of the national economy," Prof. Postula stated. She underscored that this effect, coupled with the projected falling costs of electricity from a decarbonized economy, is a "true measure of the effectiveness of the measures included in the National Recovery Plan," enhancing both domestic and Poland's overall investment competitiveness.
The Baltic Power project, currently the most advanced in the Polish sector of the Baltic Sea, is on a fast track. It is anticipated to deliver its first megawatt-hours of electricity next year, with a projected capacity to cover up to 3% of Poland’s electricity demand.
Looking ahead, ORLEN’s strategic vision extends further. The Group, in collaboration with partners, plans to develop additional offshore projects with a combined potential capacity of around 5.5 GW.
