PKN ORLEN S.A. (“PKN ORLEN”, “Company”) informs that on 29 January 2021 between PKN ORLEN, Baltic Power sp. z o.o. („Baltic Power”) and NP BALTIC WIND B.V. headquartered in Amsterdam, the Netherlands ("NP BALTIC WIND B.V."), a company from the Northland Power Inc capital group, there has been signed a joint venture agreement to gain a branch investor to the realization of the common investment (“Agreement”). The subject matter of the Agreement is to prepare, build and operate by Baltic Power an offshore wind farm located in the Polish Exclusive Economic Zone on the Baltic Sea with a maximum power up to 1200 MW. Start of construction of the offshore wind farm is planned for 2023 and commercial operations is planned for 2026. The Agreement has been signed for 35 years period, after that it is transformed into an agreement for indefinite period.
According to the Agreement’s provisions NP BALTIC WIND B.V. will ultimately acquire 49% of shares in Baltic Power, the remaining 51% of shares in Baltic Power will stay in possession of PKN ORLEN. As a part of the contributions in cash to cover Baltic Power shares that are to be acquired by NP BALTIC WIND B.V., NP BALTIC WIND B.V. plans to invest ca. PLN 290 m in 2021 for Baltic Power development.
The Agreement has been approved by the Baltic Power Shareholders Meeting. The Agreement has been concluded under the condition that changes to the Baltic Power Act of Association will be registered in the Polish National Court Register and under the condition that the approvals of relevant antitrust authorities will be obtained.
PKN ORLEN S.A. holds 100% of the shares in Baltic Power.