Polish energy company Polenergia S.A. has agreed key terms of a joint venture (JV) agreement with Lithuanian company Modus Energy AB (operating under the Green Genius brand) to develop offshore wind farm projects in Lithuania.

The tentative agreement was reached on December 31, 2021. Modus Energy AB will serve as a local partner, the announcement reads. The windmills will be built and operated using related infrastructure in the Lithuanian territory of the Baltic Sea. In addition, the anticipated project timeline (JV), roles of the parties, corporate governance issues, and impasse resolution mechanisms were agreed upon.

Polenergia and Green Genius have also agreed to extend their exclusive right to negotiate until February 15, 2022 to complete the documentation for the establishment of the JV, with the signing of the documentation and the establishment of the JV subject to, among other things, Polenergia obtaining the necessary corporate approvals.

The release further reads that the exclusivity right was originally granted for a period ending December 31, 2021. Information about the talks was provided by Polenergia with a delay.

“The decision of the Issuer (Polenergia – editor’s note) was due to the fact that the immediate disclosure of the information could infringe upon the legitimate interests of the Issuer and its group, by adversely affecting the possibility of carrying out the Project and the possibility of misleading the public through misinterpretation of the intentions of the Issuer and his group in the Project”.

Polenergia shall provide the Polish Financial Supervision Authority with information about the delay in disclosure of confidential information along with an indication whether the conditions for such a delay are met.

Polenergia is a Polish, private energy company, which in 2010 recognized the huge potential of offshore wind energy. In 2018, they started cooperation with Norway’s Equinor assuming joint implementation of the Baltic II and Baltic III OWF projects. In December 2019, it signed a cooperation agreement for the Baltic I offshore wind farm project. The total capacity of the projects developed by Polenergia together with Norway’s Equinor is 3 GW. Polenergia and Equinor have signed a letter of intent concerning cooperation in the development of offshore wind energy in Poland (Polish Offshore Wind Sector Deal).

Green Genius is one of the leading European players in the renewable energy market. Its portfolio includes projects with a capacity of 1.5 GW at various stages of development.