Orlen Neptun hungry for new markets after Poland offshore wind expansion
Offshore wind unit of refiner Orlen has targeted 2.1GW in Poland and is now looking at Sweden, Denmark, Germany and Poland for more, CEO tells Recharge
Orlen Neptun, Orlen's offshore wind subsidiary, is now getting its 1GW Baltic East project in the central part of the Polish coast ready for a contracts for difference (CfD) auction to be held towards year-end. And it is developing four more projects of the same size, which could be entered into Poland’s planned CfD auctions from 2027 through 2033.
All in all, Orlen Neptun by 2035 targets to have 2.1GW of pro rata offshore wind capacity installed off Poland’s Baltic Sea coast, spread over four operational wind farms, Orlen Neptun’s CEO Janusz Bil said in an interview.
“Orlen and Northland teamed up for the first stage project [Baltic Power], while for the second stage [of Poland’s offshore wind expansion], we don't have a partner yet,” Bil said.
“But we are looking for partners for these projects.”
By 2035, when these wind farms will be built, they will have a combined capacity of 4-5GW, although Orlen Neptun's net share of this will decline with planned joint ventures, according to Bil.
Wider Baltic Sea vision
Although still relatively new to the offshore wind sector, Orlen Neptun already has a greater vision and could also develop projects beyond Poland.
“We're interested in projects outside of the Polish Baltic coast. We are looking at different markets at the moment, we are interested in projects also abroad,” Bil said.
Possible markets for Orlen Neptun’s expansion include Sweden, Germany, Denmark and neighbouring Lithuania, although the latter in the past has had some complications.
“The Lithuanian market has its pros and cons. We've been analysing the Lithuanian market for quite a while, it remains on our radars,” Bil said.
“But as you know, the [second offshore wind] auction was postponed; there are some new regulations now subject to public consultations and in parliament. We are watching this market, and the decision will be taken in due course.”
“We take security issues very seriously, given the geopolitical situation,” Orlen’s Bil said, although not referring to the situation in Lithuania but more to the company’s Polish projects such as Baltic East.
Kaliningrad is sandwiched between Poland and Lithuania.
Orlen Neptun will stick to its Polish offshore wind expansion plans, though.
“Sweden and Lithuania shouldn't have an impact on our goals,” Bil said.
“We know that we are struggling with supply chains. There are bottlenecks and constraints in the Baltic, so the less demand there is for key suppliers [in the US], the more it helps projects outside the US,” he explained.
“So, maybe this can have some impact on relaxing supply chains to help Polish projects, but that's yet to be determined.”
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