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PGE SAPGE power wants to cooperate with Ørsted on Baltica 3; project in reconfiguration
Listed power utility PGE wants to cooperate with Ørsted on the Baltica 3 offshore wind farm project. The project is in the process of reconfiguration, but in the near future, due to the internal situation of the Danish company, it is difficult to expect any decisions, PGE's deputy CEO Maciej Gorski told a press conference.
"Our partnership with Ørsted is for better or for worse. (...) We are implementing the Baltica 2 project without any delay. (...) Baltica 3 entered a reconfiguration process some time ago, and today we have given ourselves a moment to breathe, seeing what is happening at Ørsted," Gorski told the press conference.
A few days ago, Ørsted shareholders voted in favour of issuing DKK 60 billion (EUR 8 bln) worth of rights shares to strengthen the company's finances. The reason given for the issue was the difficulties with the Sunrise Wind investment on the US East Coast, for which it is difficult to find business partners. In August, Ørsted announced that it had received an order from the US administration to suspend work on its Revolution Wind wind farm project off the east coast of the US.
Ørsted, together with PGE is currently implementing the Baltica wind farm project in Polish waters of the Baltic Sea, which consists of two stages: Baltica 2 and Baltica 3. The construction of the first stage is underway.
"I would not expect a decision on Baltica 3 in the coming weeks. (...) As a rule, we are optimistic about Baltica 3 and see no reason today to question the possibility of implementing this project within the deadlines set out in the support system granted to us," PGE's deputy said.
When asked whether it was possible that, in connection with the Ørsted situation, PGE would become more involved in the offshore project, Gorski replied: "There is no such issue today. The Baltica 2 project is being implemented on a 50/50 basis. We believe that this is a good arrangement for the implementation of such projects. I see no reason why we should change this before the project is put into operation."
"We are interested in offshore wind energy. We are interested in increasing our exposure to this segment. In particular, we believe that the support system from the first phase is good. That is why we would very much like to complete the Baltica 2 project on time and within budget. We believe today that this is highly likely," he added.
The deputy CEO announced that discussions on Baltica 3 will resume as soon as possible.
"In principle, today the partner with whom we want to implement this is Ørsted. Our cooperation with Ørsted shows us that large projects such as offshore wind farms are best implemented with a more experienced, international partner, because as PGE alone, it would probably be difficult for us to decide to implement such a project," Gorski told the conference.
pel/ ao/ nl/