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Equinor ASA EQNR, a Norwegian integrated energy company, has made a final investment decision, in partnership with Poland’s Polenergia, for an offshore wind project in the Baltic Sea. Polenergia stated that the project involves the construction of two offshore wind farms, namely Baltyk 2 and Baltyk 3, off the Polish coast. Each of these farms is anticipated to have a generation capacity of 720 megawatts (MW).
The total construction cost is expected to be approximately €6.4 billion. The project is set to be completed by 2028, while power generation is anticipated to start in 2027. The wind farms will be constructed in the Polish Exclusive Economic Zone within the Baltic Sea.
The offshore wind sector in Poland is witnessing a surge in investments aimed at developing offshore wind capacity. Many investors, including Polish energy firms like PGE and Orlen, along with Equinor and Orsted, are looking to develop offshore capacity of nearly 6 gigawatts (GW) off the Polish coast. These projects are expected to come online by 2030. According to the Polish Wind Energy Association, Poland plans to expand its offshore capacity in the Baltic Sea to an estimated 33 GW.
The two offshore wind farms will boost Poland’s renewable energy capacity and contribute to the region’s energy security. The global emphasis on climate change and emission reduction is expected to boost the prominence of renewable energy projects in the global energy landscape. Poland can capitalize on its position in the Baltic Sea to establish itself as a key player in the offshore wind segment.
EQNR’s Zacks Rank and Key Picks
EQNR currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Diversified Energy Company plc DEC, Expand Energy Corporation EXE and RPC, Inc. RES, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Diversified Energy Company is an independent oil and natural gas producer in the United States. The company is primarily engaged in the production, transportation, and marketing of natural gas and natural gas liquids. The rising demand for natural gas as a cleaner-burning fuel and an uptick in the commodity’s prices are expected to positively impact the company’s bottom line.
Expand Energy is a leading U.S.-based natural gas producer formed through the merger of Chesapeake Energy Corporation and Southwestern Energy Company. Natural gas is expected to play an increasingly important role in the energy transition journey. Expand Energy is poised to benefit from the rising demand for natural gas as a cleaner-burning fuel. The recent rise in natural gas prices is also anticipated to positively impact EXE’s profitability.