Danish energy company Ørsted has received a €500m ($580m) loan from the European Investment Bank (EIB).

The loan will support Ørsted’s increased capital expenditure programme for renewable energy projects and the conclusion of the Borssele I and II wind farms located off the Dutch coast.

The 752MW Borssele I and II wind farms feature 94 wind turbines and supply clean energy through inter-array cabling to an offshore substation.

This energy is then transferred to the grid through a high-tension line that the EIB previously helped fund with TenneT, a European electricity transmission system operator.

Ørsted vice-president and Treasury and Capital Planning head Kasper Kiim Jensen said: “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.”

EIB vice-president Kris Peeters said: “The EIB has a long history when it comes to financing wind power, from the research and development (R&D) 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.

“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.”

In a separate development, the EIB, supported by the European Commission, has granted a €25m ($29m) loan to Centrale Électrique de l’Ouest Guyanais (CEOG).

The loan will fund the construction and operation of a photovoltaic plant, coupled with storage technologies, in French Guiana.

The plant will be located in the municipality of Mana and have an installed capacity of 54.5MW. It is expected to come online in 2024.

CEOG is a special purpose vehicle for the project owned by Meridiam EI, Société Anonyme de Raffinerie des Antilles (SARA) and Hydrogène de France (HDF Energy).