PGE and Ørsted have contracted supply of all key components for offshore part of Baltica 2

30.10.2023
Budowa morskiej farmy wiatrowej PGE i Orsted nabiera rozpędu

PGE Group and Ørsted have signed another agreement for supply of foundations for Baltica 2 – one of two stages of the Baltica Offshore Wind Farm. This is the last contract relating to key components for the offshore part of Baltica 2, closing so-called Tier 1 level of the investment.

 

We have already secured all key components for the offshore part of Baltica 2. The finalised tenders and signed agreements clearly show how advanced the project preparations are.  This investment of 1.5 GW capacity is the biggest energy project to date based on renewables, and we are talking about the first stage only. The entire Baltica Offshore Wind Farm of 2.5 GW capacity will be ready by the end of this decade. We are also witnessing the rising interest of Polish companies that want to contribute to this project, which was also proven by high turnout at the Suppliers Day organized in October by PGE and Ørsted. 

Wojciech Dąbrowski, President of the Management Board of PGE Polska Grupa Energetyczna

The bidding process for all key components for Baltica 2 took place in 2022 and early 2023, a time of unprecedented macroeconomic challenges due to the war in Ukraine, supply chain problems, high inflation, and rising interest rates. Despite these challenges, we were able to finalize all Tier 1 contracts in the offshore scope. This is a major success that would not have been possible without the cooperation of our business partners. We are also very pleased that already contracted suppliers are declaring their willingness to cooperate with Polish sub-suppliers, which clearly resonated during the Suppliers' Day organized jointly with PGE in early October. This is an important impulse to create new industries in our country.

Agata Staniewska, Managing Director of Ørsted Offshore Poland.

Successful bidder Steelwind Nordenham specializes in manufacturing of monopiles – a type of foundations to be used in Baltica 2 which will consist of 107 turbines and four offshore substations. Steelwind will deliver 34 monopile foundations. The production will start in the second half of 2025. Earlier PGE and Ørsted had signed a contract for 77 monopiles for turbines and offshore substations with Navantia and Windar strategic alliance. Production of monopiles for Baltica 2, by Navantia and Windar, will begin in 2024. Independently of the supply contract for Baltica 2 Windar plans to build a facility that will be manufacturing towers in Szczecin, in northwestern Poland, which is expected to be ready in 2026. It is a real example proving high impact of future offshore wind farm developments on the Polish economy creating thousands of jobs and giving new development opportunities to numerous branches of Poland’s industry in decades to come.

Ørsted and PGE plan to deliver Baltica 2 of 1.5 GW capacity by the end of 2027 and Baltica 3 of 1 GW capacity by 2029. The project is subject to final investment decision. Baltica 2 and Baltica 3 will create the Baltica Offshore Wind Farm of 2,5 GW total capacity. It will contribute significantly to Poland’s green energy transition, delivering clean energy for nearly four million households in Poland.

Learn more about the Baltica Offshore Wind Farm by visiting baltica.energy.

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About the PGE Group

PGE Polska Grupa Energetyczna is the largest electric power company and supplier of electricity and heat in Poland. By combining its fuel and power generation resources and having distribution networks, PGE guarantees safe and stable supply of electricity and heat to over 5.6 million customers. The PGE Group’s generating units produce over 40 percent of electricity in Poland.  With 7 percent of installed wind farm capacity in Poland the PGE Group is the country’s largest renewable electricity company. The plan for the coming years is to continue developing renewable energy sources – especially based on wind and sun energy, as well as investments in energy storage, construction of a nuclear power plant, upgrade of energy distribution grid and decarbonizing heat generation segment. The PGE Group’s investment plan covers the country’s largest investment in offshore wind power plants. The PGE Group’s Offshore Program is development of the Baltica Offshore Wind Farm, which runs in two stages – Baltica 2 and Baltica 3, with a total installed capacity of up to 2.5 GW by 2030. Then, after 2030, Baltica 1 project will join the Group’s portfolio. Thanks to new seabed areas acquired in the Baltic Sea the PGE Group will be able to develop further offshore wind projects by 2040. Including currently developed projects it will allow for achieving over 7 GW total capacity installed in the offshore wind. This makes PGE Group the biggest investor in Poland’s offshore wind in terms of capacities planned for development.

About Ørsted

The Ørsted vision is a renewable-only world. The Danish-born company is today in more than a dozen markets, from the United States of America to the European countries to Asia. Poland is one of the key markets for Ørsted, which has been operating for over 10 years now with over 700 employees (approx. 8,000 worldwide). The Baltica Sea Wind Farm with a total capacity of up to 2.5 GW in the Polish part of the Baltic Sea is part of the recently updated Ørsted ambition to reach 30 GW in offshore wind energy by 2030. Ørsted, which has 30 years of experience in the realization and development of offshore wind farms, currently has approx. 12 GW of power installed in this technology worldwide. In addition to offshore wind farms, the company develops, builds, and operates onshore wind farms, solar farms, energy storage and bioelectric plants, and supplies energy products to its customers. We are on the CDP Climate Change List and as a global leader in climate action. In 2022, the group's revenue was DKK 132.3 billion (EUR 17.8 billion).

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