ORLEN Neptun signed a letter of intent with ARP S.A. and the TFK Group – the initiators of the construction of the first Polish Cable Laying Vessel

The development of offshore wind farm projects in the Baltic Sea and the limited availability of vessels for laying and servicing subsea cables are important reasons to develop a project to support the development of national competence in offshore wind infrastructure. On May 20 this year ARP S.A. and the TFK Group signed letters of intent with PGE Baltica and ORLEN Neptun, paving the way for cooperation in the installation and servicing of subsea cables connecting turbines of offshore wind farms, using a Cable Laying Vessel.

ARP S.A. and the TFK Group are jointly making advanced preparations for the implementation of the project for construction of an offshore installation vessel designed to serve projects being developed in the Baltic Sea and other water regions.

The Polish Cable Laying Vessel was initiated by the Minister of State Assets, Wojciech Balczun, while he was the President of ARP S.A. 

"The construction of offshore wind farms in the Baltic Sea is one of the key projects that will ensure a smooth transformation of the Polish energy industry. This huge project should be implemented as much as possible by Polish companies, which will expand their competence in the process. Cooperation between ARP S.A., the TFK Group, PGE Baltica and ORLEN Neptun in the construction of the first Polish Cable Laying Vessel provides such a synergy of experience and allows to develop new industrial capacity. This is an example of an effective partnership, in which state-owned companies cooperate with Polish business, strengthen the local supply chain and increase the share of domestic capital in strategic investment projects, but also create jobs", stated Wojciech Balczun, the Minister of State Assets.

The existing Management Board of ARP S.A. has been consistently moving forward with the plan to build a CLV.

"The development of offshore wind energy in Poland with the participation of domestic owners will significantly increase the use of local resources and competences. Such a model of cooperation will maximize the level of local content in the second phase of the sector's development, while at the same time consolidating the position of Polish entrepreneurs in the global segment of highly specialized units providing offshore services", stressed Daniel Ryczek, acting President of the Management Board of ARP S.A.

The letters of intent signed today provide an opportunity for Polish entities wishing to participate in the construction of offshore wind farms.

"This partnership addresses the need to support the national component in strategic investments made in the energy industry, where the State offers investors a solid support system. In the case of offshore energy, such a system is a multi-year contract for difference that guarantees the price of energy sales. Schedules for offshore wind energy development projects are already tight, which is why it is so important for us to strengthen our technical facilities as part of building a local supply chain. We look forward to the construction of the vessel and its release for offshore works as soon as possible. From the perspective of ORLEN Neptun, which is developing two offshore wind farms projects, Baltic East and Baltic West, it is crucial for us to be able to maintain the pace of implementation and meet the growing demands of the market", confirmed Janusz Bil, the President of the Management Board of ORLEN Neptun.

The first Polish Cable Laying Vessel is therefore important for the dynamics of works on strategic projects in the Offshore Wind Energy area.

"The signed letter of intent is a clear confirmation of our support for the construction of the first Polish Cable Laying Vessel, but also signals a real interest in using this vessel for PGE Baltica's offshore projects. It is also an example that Polish energy companies can join forces for the good of the Polish offshore wind. We all care about the development of a Polish vessel that will be a national resource and strengthen the local content in Offshore Wind Energy in the Baltic Sea", said Bartosz Fedurek, the President of the Management Board of PGE Baltica.

An increasing number of domestic players from complementary industries declare they are ready to engage in the development of the domestic supply chain for the offshore wind sector and the implementation of strategic energy investment projects.

"The dynamic development of Offshore Wind Energy requires further strengthening of national competencies in the offshore area. As a manufacturer of onshore and subsea cables for the renewable energy sector we have been participating in the international projects for years and we can see a growing importance of this type of initiative for efficient implementation of offshore investment projects", stressed Piotr Mirek, a Member of Tele-Fonika Kable and the Executive Manager for Supply Chain and Investment Projects in JDR Cable Systems.

Apart from serving offshore wind energy projects in Poland, the CLV can take part in a wide range of offshore infrastructure projects – including the laying of subsea cables for interconnectors, which significantly increases the scope of its use in the domestic market, but also abroad.

Polish shipyards already have the experience and technological capabilities to undertake the construction of a CLV. The final identification of the shipyard where the Cable Laying Vessel could be built will require commercial negotiations on production capacity, contract terms, and risk sharing.

The European fleet of Cable Laying Vessels, designed to lay and service subsea cables for the offshore wind energy sector, remains limited in relation to the rapidly growing needs of the offshore wind energy market. At the same time we can observe further development of the market for specialized installation vessels supporting offshore wind projects in Europe.