The largest Polish utility company, PGE, and the Danish company Orsted have finalized an agreement to jointly develop two projects in the Baltic Sea, where offshore wind farms with a combined capacity of 2.5 gigawatts (GW) will be built, according to Reuters.

According to the energy strategy until 2040, recently adopted by the Polish Government, the share of renewable sources in final energy consumption will be of at least 23% in 2030, when the installed capacity of offshore wind farms would reach 5.9 GW, compared to zero at present. By 2040, the installed capacity of offshore wind farms will reach 11 GW.

Under the agreement, Orsted will acquire a 50% stake in each of the two projects. The combined value of the transactions is of 686 million zlotys ($181 million).

“This is the price that guarantees that PGE will not incur additional investment costs in this project until the final investment decision,” Polish company general manager Wojciech Dabrowski told Reuters. He added that the final value of the transaction could increase to one billion zlotys, depending on the final conditions of the investment, according to Agerpres.

PGE’s offshore wind capacity is expected to reach at least 6.5 GW by 2040.

PGE, which now generates most of its coal-fired electricity, has been in talks since 2019 with Orsted, the world’s largest offshore wind operator.