A merger and acquisition agreement has been signed between PKN ORLEN and Northland Power Inc. to co-develop the 1200 MW Baltic Power project. The 49% stake in this offshore wind project will allow Northland to position itself in the growing RE market in Central Europe.
Merger acquisition signed for 25 years
1200 MW of offshore wind power
Through this merger acquisition, Canadian energy producer Northland announced that it will acquire a 49% stake in the 1200 MW Baltic Power offshore wind project. Thus, it will co-develop with the Polish company PKN ORLEN this project located only 23 kilometers from the Polish coast.
100 million Canadian dollars invested in 2021
Construction activities are expected to begin in 2023 and commercial operations are planned for 2026. Northland plans to invest nearly C$100 million in the project in 2021 alone. This merger acquisition would generate predictable and sustainable cash flows over time, with a 25-year contract.
Privileged access to the Central European market
Poland for safe investments
Poland is the fifth largest country in the European Union (EU) with a population of 40 million. The country is rated A by the rating agency Standard & Poor’s. The country is experiencing solid economic growth and a growing middle class. It therefore represents a privileged destination for investors looking for safe investments.
10 to 12 GW of offshore wind power by 2040 in Poland
This is especially true in the energy sector, which is expected to grow along with the economy. In this sense, Poland plans to add 10 to 12 GW of offshore wind capacity and an additional 15 GW of solar capacity by 2040.
Its association with PKN ORLEN gives Northland privileged access to the RE market in Central Europe and more widely throughout Europe. The Polish company is indeed a major player in the energy sector with 3.2 GW spread over six countries.
1500 MW of offshore wind power in Europe
Currently, Northland has majority stakes in three wind farms in the North Sea: Gemini, Nordsee One and Deutsche Bucht. Of the 1,200 MW of cumulative capacity of these three wind farms, Northland manages 890 MW. Once completed, the Baltic Power project will nearly double the Canadian company’s participation in the wind energy sector.