ORLEN Group plans further rapid growth in offshore wind power
The ORLEN Group has submitted applications for seven new licences to develop offshore wind farms in the Baltic Sea. Once the next stage of the administrative procedure is launched, the Group will apply for the other four licences in the region. The total capacity that could be developed in the areas covered by the applications is estimated at around 7 GW. By applying for the largest possible number of licences, the ORLEN Group wants to take advantage of the economies of scale and its track recording of implementing offshore wind energy projects.
‘The ORLEN Group Strategy 2030 identifies energy generation based primarily on renewable sources as a key growth area. Our plans to build low- and zero-carbon power generating capacities rely on the most efficient technologies available today that will enable us to modernise this business segment. Therefore, we aim to invest in offshore wind farms as a key development direction for the Group and the Polish economy as a whole. We have the expertise and resources needed to lead this process. Hence the drive to secure the largest possible number of new licences. This is vital in order to achieve the desired economies of scale that would enable Polish firms maximise contribution and participate in the business processes related to the offshore wind value chain,’ commented Daniel Obajtek, President of the PKN ORLEN Management Board.
Given its high production efficiency, offshore wind power generation is the fastest-growing renewable energy source in Europe. About 2.2GW of capacity has been installed in the Baltic Sea to date, and experts estimate the figure could reach as much as 93GW by 2050. The potential of the Baltic Sea lies primarily in favourable conditions for wind power generation – it has low salinity, waters are relatively shallow and winds are strong throughout the year.
According to the Poland Energy Policy 2040, between 9GW and 11GW of offshore wind capacity is to be developed in Polish waters. The ORLEN Group is poised to become a leader in the area, also through the pursuit of its ORLEN2030 strategy. By the end of the decade the Group will spend PLN 47bn on state-of-the-art energy projects, including offshore wind.
Expansion of the energy potential in the Baltic is among the key development projects of the ORLEN Group carried out through its subsidiaries ORLEN Neptun and Energa Morskie Farmy Wiatrowe. The Group is enhancing its offshore wind capabilities and track record through a number of projects, including Baltic Power, which is an offshore wind farm with a capacity of up to 1.2GW that is being developed in partnership with Canada’s Northland Power. Construction is due to start in 2024 and end in 2026. Located about 23km off the coastline near Łeba and Choczewo, the 1.2GW wind farm will ultimately power up to one million households in Poland.