EIB completes financing for 1.4-GW Nordlink Subsea Interconnector project

The European Investment Bank (EIB) has signed a €300 million (US$338 million) loan agreement with Norwegian transmission system operator (TSO) Statnett for the completion of the NordLink Subsea Interconnector project between Germany and Norway.

The signature comes shortly after the first part of the financing for the interconnector was signed with TSO TenneT for the German side of the project. As we reported in early April, the EIB provided a €350 million (US$394 million) loan for the project financing.

Once completed, a bipolar high voltage direct current (HVDC) link will connect Norway and Germany across the North Sea. The project will have a rated capacity of 1400 MW, terminal voltage of +/- 500 kV and a total length of 624 km. The envisaged investment for the project ranges from €1.5 to €2 billion.

The EIB Vice-President responsible for Energy Andrew McDowell commented:

“The security of supply and effective use of renewable energy remain high on the agenda for EIB financing. Germany has long regarded the sustainability of the energy it uses as very important and the interconnector will allow it to import Norwegian hydro energy when needed, while also allowing exportation of its own surplus renewable generation towards Scandinavia. The EU Bank has set itself the goal of channeling at least 25% of its investments towards climate action relevant projects, and this project is a perfect example of how seriously we take this."

Knut Hundhammer, CFO of Statnett, added:

“With a total investment of 1,5-2 Bn Euros, The NordLink interconnector is one of Statnetts largest investments. This project is a major step towards a more climate friendly and integrated energy system, and contributes to more renewable energy in both countries.  The participation of EIB in funding the project is a great advantage and adds a significant part of Statnett's funding portfolio.  Nordlink is the third interconnector that the EIB has helped Statnett finance and we strongly appreciate EIB's continued commitment and support to help finance a more electric and climate friendly future."