Ørsted Lands $581 Million European Loan for Wind Projects

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Investment Bank (EIB) has agreed to loan 500 million euro (US$581 million) to one of Europe's largest renewable energy companies, Ørsted (Gentofte, Denmark).

The bank, which is wholly owned by the European Union (EU), said that the loan will support the company's increased capital expenditure (capex) programme on renewable energy projects and also allow for the conclusion of the Borssele 1 & 2 windfarms off the coast of the Netherlands. Borssele 1 and 2 have generating capacities of 376 megawatts (MW) each and are located 22 kilometres from the coast of the Dutch province of Zeeland in depths ranging from 14 to 38 metres. Work kicked off in 2017 and used the first commercially available 8-MW turbines from Siemens Gamesa. Power from the windfarms goes to an offshore substation before reaching the grid via a high-tension line, which the EIB previously helped finance with TSO TenneT. The windfarms, commissioned at the end of last year, can power up to 1 million homes.

"The EIB has a long history when it comes to financing wind power, from the R&D (research and development) of the technology to the turbines, as well as some of the largest wind parks in Europe, ultimately helping to bring down the prices for wind energy," said EIB vice president Kris Peeters. "Renewable energy will continue to gain importance as we move towards full decarbonisation. The EIB remains committed to financing this transition and is happy to financially support Ørsted's role in this."

Kasper Kiim Jensen, head of Treasury & Capital Planning at Ørsted, added: "We're very pleased with the commitment from EIB and the strong support they are showing for Ørsted's investments into the Borssele 1 and 2 wind farms and renewable energy in general. With this loan, Ørsted has secured long-term financing for the project, which is a key enabler towards succeeding with our aspiration to become the world's leading green energy major."

Industrial Info is tracking 12 large windfarm projects by Ørsted, with a combined investment value of US$28.5 billion. These include the next phase of the giant Hornsea windfarm complex offshore in U.K. waters, Hornsea 3, which will have a capacity of 1,200 MW of wind power. Hornsea 1, completed earlier this year, became the world's largest windfarm at 1,200-MW while Hornsea 2, which is under construction, will take over as the world's largest windfarm at 1,400-MW when it is commissioned in 2022. The company is also behind the 1,000-MW Ronne Bank windfarm, which will form part of the ambitious Bornholm Energy Island 80 kilometres off Denmark's shore in the North Sea. Spearheaded by the Danish government, the first phase of the artificial island will measure 120,000 square metres - roughly 18 football pitches - and will be home to up to 200 giant wind turbines that will be capable of producing enough renewable energy to power 3 million homes. If successful, the full implementation will see the island triple in size and be capable of powering up to 10 million homes in Denmark and neighbouring countries. For additional information, see February 17, 2021, article--Denmark to Build First 'Energy Island'.

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