Strategic partnership of PKN ORLEN with American manufacturer of wind turbines

PKN ORLEN is actively involved in the implementation of Poland's energy policy. The company started a strategic partnership with the American company GE Renewable Energy, one of the world's leading manufacturers of turbines for offshore wind farms. The signed Memorandum of Understanding is aimed at strengthening PKN ORLEN’s competitiveness in applying for new concessions for wind farms in the Polish economic zone in the Baltic Sea. The cooperation of companies is the next stage in the implementation of the strategy ORLEN2030, assuming that the concern will achieve emission neutrality in 2050.

Offshore wind energy is one of the pillars of the green transformation of PKN ORLEN. Till 2030 the company plans to invest in renewable energy sources, including offshore wind, 47bn PLN.

“By implementing the ORLEN2030 strategy, which assumes considerable growth of capacity from renewable energy sources, we will strengthen our position as the leader of the energy transformation in Central Europe. This will be possible to a large extent thanks to investments in offshore wind energy and parallel expansion of our RES portfolio with additional capacities installed, among others, in onshore wind power plants. The agreement we signed with GE Renewable Energy supports the implementation of these ambitious goals. We are convinced that our cooperation and joint involvement in the development of the Polish offshore wind energy sector will result in a significant part of the growing offshore wind energy market becoming the object of Polish capital in the upcoming concession procedures for new farms", says – states Daniel Obajtek, President of the Management Board of PKN ORLEN.

According to the assumptions of PEP2040, by 2030 in the waters of the Baltic Sea, as part of the so-called In the first phase, wind farms with a total capacity of 5.9 GW will be built. The document provides that by 2040 the generation capacity of wind farms located in the Polish part of the Baltic Sea will reach from 9 to 11 GW of capacity. It will be possible, among others thanks to the upcoming concession procedure, under which there are 11 locations for farms to be allocated, with a total area of 2,342 km2, indicated in the development plan for Polish sea areas. PKN ORLEN currently has one license with a capacity of up to 1.2 GW, under which the Baltic Power project is implemented. In the upcoming concession procedure, the concern plans to acquire new locations, using its own and GE Renewable Energy knowledge and experience.

Strategic partnership between PKN ORLEN and GE Renewable Energy will support the development of the Polish offshore sector. Through this partnership, GE Renewable Energy would aim to create jobs to support the potential expansion of the Polish supply chain supporting the entire offshore wind industry.

GE Renewable Energy will work with PKN ORLEN to strengthen cooperation to enhance its industrial capabilities in Poland and competitiveness to compete for new offshore wind leases in Poland.

GE Renewable Energy Jérôme Pécresse, Senior Vice President, GE & CEO, GE Renewable Energy, said, “Poland is well positioned to use offshore wind resources to help accelerate the energy transition. The agreement that we are signing today charts a path to take pragmatic steps that can take full advantage of Poland substantial offshore wind resources to create win-win outcomes in terms of the environment and economic development.”

The construction of an offshore wind farm in the Baltic Sea is one of the key development projects of PKN ORLEN in line with the strategy ORLEN2030. Works on the development of offshore wind energy are carried out by the company through its SPV Baltic Power company, which has a concession for the construction of wind farms with a maximum total capacity of up to 1,2 GW. The project is implemented in partnership with Canadian company Northland Power. The investment area, with a total area of approx.. 131 km2 is located approximately 23 km north of the Baltic Sea coastline, at the height of Choczewo and Łeba. Its construction is planned to start in 2023 and its completion in 2026.

PKN ORLEN also invests in onshore wind farms. In February this year, it purchased Kanin wind farm with capacity of 20 MW from two foreign investment funds, located in the West Pomeranian Voivodeship. In turn, in March, the concern purchased from the Spanish investment fund three more onshore wind farms located in the Pomeranian Voivodeship. These are Kobylnica (41,4 MW), Subkowy (8 MW) and Nowotna (40 MW) projects.