SEK finances part of ABB's deliveries to the North Sea Link

SEK finances part of ABB's deliveries to the North Sea Link

ABB has won an order worth around 450 million USD to supply converter stations for the construction of a submarine cable between the United Kingdom and Norway, - NSL (North Sea Link). SEK is providing financing of about USD 230 million in the form of an export credit at CIRR-rate. The North Sea Link is a more than 720Km long high voltage direct current (HVDC) electricity interconnector with an approximate capacity of 1400 megawatts (MW). The aim of the project is to secure the supply of electricity between the two countries and it is expected to be in commercial operation in 2021. The interconnector will be bidirectional allowing the import and export of electricity between the UK and Norway. The proposed subsea cables would be routed from the converter station in East Sleekburn near Blyth to Cambois Bay and to Kvilldal in Norway passing through UK and Norwegian waters. North Sea Link will give the UK access to Norwegian hydro power whilst giving Norway access to UK's increasing portfolio of wind and other renewable technology generation. It is estimated that 106 million tons (2,65 million tons annually, which is an average annual carbon dioxide avoidance) of CO2 emissions shall be reduced during the 40 year lifecycle. North Sea Link will increase energy security and the use of renewable energy and replace fossil energy in Europe, which will contribute to reducing the CO2 emissions. This is in line with EU objectives. The project contributes to an overall economic and ecological sustainability, and to achieve the EU 2020 targets.

Project data

Eligible project classification: Renewable Energy

CO2 Impacts: Annual reduction of 2,650,000 tons CO2 compared to base case. Part financed by SEK corresponds to an annual reduction of 371,000 tons CO2.

Applied Standards: IFC Performance standards, OECD Common Approaches, Norwegian, UK and EU

Environmental laws

Transaction data

SEK Lending: USD 230 million

Start: 2016

Maturity: 2027

Buyer: Statnett and National Grid

Exporter: ABB