Danish renewable energy company Orsted has secured a €500 million (~$582 million) loan from the European Investment Bank (EIB). The agreement will support its capital expenditure on renewable energy projects and the conclusion of the Borssele 1 and 2 wind farms off the Dutch coast. The wind farms will receive a long-term financing commitment from EIB.
The 94 wind turbines in the 752 MW Borssele wind farms transfer their energy to an offshore substation via inter-array cabling before reaching the grid via a high-tension line that the EIB previously helped finance with TSO TenneT.
Orsted is involved in developing, building, and operating wind farms, solar farms, energy storage facilities, biofuel plants, and providing customers with energy products.
“We’re very pleased with the commitment from EIB and the strong support shown for Orsted’s investments into the Borssele 1 & 2 wind farms and renewable energy in general,” said Vice President Kasper Kiim Jensen, Head of Treasury & Capital Planning at Orsted.
“Renewable energy will continue to gain importance as we move towards full decarbonization. The EIB remains committed to financing this transition and is happy to support Orsted’s role in this,” said EIB Vice President Kris Peeters.
EIB provides long-term financing for investments that contribute to the European Union’s (EU) policy goals and is owned directly by the EU member states. Last year, EIB announced that it would provide €3 billion (~$3.55 billion) for clean energy projects around the globe. It approved financing for several renewable energy projects in Europe, including the construction of new wind projects off the Dutch coast and Bosnia. It would also provide support to renovate hydropower in Georgia. The bank also agreed to finance projects to improve energy efficiency in Ukraine and Austria, to revamp electricity networks in Madeira and Hungary, and to introduce smart meters in Lithuania.
EIB’s recent report found that about 45% of EU firms have reported investments to fight climate change. The report highlighted that uncertainty about regulation, taxation, and investment costs were the main constraints to climate-related investments in the EU.
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