Ørsted secures €500m EIB loan to expand renewables portfolio

Ørsted
Image credit: EIB

Danish energy company Ørsted is set to expand its portfolio of renewable energy capacity after securing a €500 million ($580 million) loan from the European Investment Bank (EIB).

Ørsted says it will use the loan to align the business to its sustainability goals, which prioritise the deployment of low-carbon energy resources.

The company will fund the completion of the Borssele 1 & 2 wind farms off the Dutch coast. Once complete, the 752MW Borssele wind farms will have 94 wind turbines and will use a transmission line developed by Tennet and funded by the EIB to feed electricity into the main grid.

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Vice President, Kasper Kiim Jensen, Head of Treasury & Capital Planning at Ørsted, said: “…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… is a key enabler towards succeeding with our aspiration to become the world’s leading green energy major.”

Kris Peeters, vice-president of the EIB, said the loan is part of efforts by the bank to invest in measures that can help the region to reduce the prices of wind energy and to accelerate the decarbonization of the energy sector.

Ørsted is investing heavily to expand its renewables business across the European continent and globally with the firm targeting to install 50GW of renewable energy capacity worldwide by 2030. Of the targetted capacity, 30GW will be offshore wind and 17.5GW onshore wind and solar PV, according to a statement.

Some of the company’s newest renewable energy projects include the 900MW Borkum Riffgrund 3 wind farm in Germany, a multi-GW pipeline of offshore wind energy projects to be built with T&T in Vietnam, and a 227 MWAC solar energy project completed in Alabama.

Rasmus Errboe, Ørsted’s Head of Region Continental Europe, added: “The world urgently needs to shift to renewable energy to reduce carbon emissions. To achieve this systemic change, action is needed from governments, energy providers, and corporate energy customers.” 

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