The Swedish Export Credit Corporation (SEK) has announced a €800m ($939m) loan facility with National Grid Electricity Transmission for the UK’s Eastern Green Link 2 (EGL2) project.
The EGL2 project includes the development of a 525kV, 2GW high-voltage direct current (HVDC) subsea transmission cable from Peterhead to Drax in Yorkshire.
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It is being developed by a partnership between National Grid Electricity Transmission (NGET) and Scottish and Southern Electricity Networks Transmission (SSENT).
Overall expenditure for EGL2 is projected to be €5bn ($5.8bn). The EGL2 subsea link is expected to be operational by 2029.
The project will support the decarbonisation of the UK’s electricity grid, aligning with the government’s net zero strategy.
SEK is funding Swedish and European exports for National Grid’s portion of the project, including supplies from Hitachi Energy.
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By GlobalDataThe financing is designated as a Green Loan under international standards, signifying its contribution to climate improvement and alignment with global sustainability objectives.
The financial arrangement includes a partnership with Société Générale (SocGen) and BNP Paribas, with funding from SEK supported by a Green Export Credit Guarantee from EKN.
SEK global trade and export finance director Marica Bixo stated: “This is a strategically important investment that strengthens the UK’s renewable energy infrastructure. We are proud to contribute by financing Swedish technology with global impact.
“Green and sustainable financing is a priority area for us, and this project clearly supports the transition to a low-carbon economy.”
SSENT and NGET commenced construction work on the EGL2 project in September 2024.
