EIB: GBP 250 mln loan with for London Array wind farm
The European Investment Bank (EIB) has signed a GBP 250 million Loan Facility with DONG Energy, guaranteed by the Danish Export Credit Agency (Eksport Kredit Fonden, EKF) on the basis of deliveries from Siemens Wind Power and Per Aarsleff. The loan is part of the financing for the construction of the London Array offshore wind farm. The financing is in line with DONG Energy’s strategy to diversify its funding on various loan types and to fund projects out of the parent company.
The first phase of the London Array wind farm has a capacity of 630 MW and is expected to begin operation in 2012 and be able to provide renewable energy for the London Olympics. Once completed it will be the world’s largest offshore wind farm. DONG Energy owns 50% of the farm with E.ON (30%) and Masdar (20%) holding the remaining shares.
Simon Brooks, European Investment Bank Vice President responsible for operations in the United Kingdom and Climate Action said: “The European Investment Bank is pleased to be able to support Dong Energy’s contribution to London Array, expected to be the world’s largest wind farm. This project will make a significant contribution to the United Kingdom’s renewable energy targets.”
Carsten Krogsgaard Thomsen, Chief Financial Officer of DONG Energy said: “DONG Energy’s goal is to reach at least 3,000 MW of wind turbine capacity by 2020, and London Array is a cornerstone in this transition towards a greener future. The EKF guaranteed EIB funding of the project supports our robustly financed investment programme”.
The European Investment Bank (EIB) is the European Union’s long-term financing institution which supports projects promoting European Union objectives, including mitigation of climate change. Last year the EIB lent EUR17 billion for climate change projects that will contribute to reducing greenhouse gas emissions. The EIB has disbursed over EUR 1 billion to the offshore wind sector since 2002, supporting EUR 2.4 billion of capital expenditure. Five of these projects represent 38% of the global installed capacity. In 2009 the Bank approved over EUR 2 billion for new offshore wind farms. The first EIB involvement in developing UK based wind farms first started in 2002
DONG Energy is one of the leading energy groups in Northern Europe. We are headquartered in Denmark. Our business is based on procuring, producing, distributing and trading in energy and related products in Northern Europe. We have approximately 6,000 employees and generated just under DKK 50 billion (EUR 6.6 billion) in revenue in 2009.