IPPToday #173: Statoil to develop 1200 MW offshore wind in Polish Baltic Sea
- Bałtyk Środkowy II (BSII) offshore wind farm in Polish Baltic Sea
- Baltyk Srodkowy III (Baltic Middle III) offshore wind farm in Polish Baltic Sea
Related M&A Transactions
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Statoil has announced that it has signed an agreement with Polenergia to acquire a 50% interest in two early phase offshore wind development projects in Poland, Bałtyk Środkowy III (BSIII) and Bałtyk Środkowy II (BSII). The two projects have a planned capacity of 1200 MW with the potential to power more than two million Polish households.
The Bałtyk Środkowy II and III wind farm areas are located in the Baltic Sea approximately 27 and 40 kilometers from the port of Łeba in water depths of 20-40 meters.
Statoil is also entering into a 50/50 joint venture with Polenergia to further prepare these projects for future auctions and final investment decisions (FID). Statoil will manage the development and potential construction and operational phases.
This agreement is motivated by Statoil's ambition to grow significantly within renewable energy. The company plans to invest up to EUR10 billion (US$12.3 billion) in profitable renewable projects by 2030.
Statoil is already developing the Arkona offshore windfarm together with EON in the German part of the Baltic Sea, and currently operates three wind farms off the UK coast. This portfolio has the capacity to provide more than one million European homes with renewable energy.
Offshore wind has a strong foothold in Europe with over 15 GW installed capacity, with a potential to reach between 50 and 70 GW by 2030. The Polish Baltic Sea has a potential in excess of 8 GW, the first 4 GW of which could be in operation by 2030.
Statoil's executive vice president of New Energy Solutions, Irene Rummelhoff, commented,
"We are entering a market with growth potential through two of the most advanced offshore wind developments in Poland. The country is well-placed to develop a strong offshore wind industry that would create jobs and value in one of the most dynamic parts of the European markets. Following a dramatic reduction in cost for offshore wind, we are looking forward to work with our new partner, the Polish authorities and the Polish supply chain to advance offshore wind as a competitive source of energy and industry."
The closing of the transactions with Polenergia is subject to consent of the President of the Office of Competition and Consumer Protection in Poland.