The Baltica 2 wind farm off the Polish coast has secured €1.4bn in commitments from three export credit and development institutions, backing plans to build the largest offshore project in the EU.

The funding is structured as three separate packages: an €800mn finance guarantee from Danish export credit agency the Export and Investment Fund of Denmark (EIFO), a €400mn loan from the European Investment Bank (EIB) and a €200mn loan from the European Bank for Reconstruction and Development (EBRD). The financing will be disbursed in Polish zloty.

The development costs of Baltica 2 are equally shared between Poland’s PGE and Denmark’s Ørsted, the co-owners of the project, meaning each must contribute around Zł15bn (€3bn).

The funds secured from the EBRD, EIB and EIFO are allocated to PGE as part of a broader financing consortium comprising over 20 public and commercial institutions. PGE declined to provide the names or contributions of other consortium members. An Ørsted spokesperson tells GTR that its share of the project is financed from its own capital.

The 1.5GW wind farm will consist of 107 turbines located 40km off the northern coast of Poland. Once operational, it will be the largest offshore wind project in the EU, generating around 5000GWh a year, equivalent to 3% of Poland’s current electricity production, according to the EBRD.

All three institutions have cited environmental and energy security concerns as key drivers behind their investment.

The EBRD estimates the programme will help avoid over 3.5 million tonnes of CO2 a year, while the EIB says its investment will strengthen co-operation and energy security in the Baltic Sea region.

EIFO says its support “demonstrates a continued commitment to helping Poland to transition away from a historical dependence on coal, towards a future of clean and secure energy supply”.

The export credit agency’s guarantee will also boost Danish exports by supporting large supply contracts involving Denmark-headquartered companies Siemens Gamesa Renewable Energy, Semco Maritime and Cadeler.

“This financing agreement highlights EIFO’s strategy in action: providing ambitious financing to support the development of innovative and impactful green energy projects, while simultaneously advancing the economic interests of Danish exporters,” says EIFO’s chief operating officer, Peter Boeskov.

“We are delighted to be working together with two leaders in the energy transition on the development of this significant offshore wind farm, helping to maximise the potential of wind power generation.”

All three institutions have a long history of investing in wind power. Earlier this month, EIFO guaranteed US$420mn of financing to expand a wind farm in a war-torn area of Ukraine only a few days after announcing it would back a half-a-billion-dollar loan to French energy company Engie for onshore wind.

In 2023, the EBRD and EIFO also funded Poland’s first offshore wind farm, Baltic Power, with loans of €140mn and €1bn respectively. The same year, the EIB extended a €400mn loan to Ørsted for the development of new wind farms.