The North Sea Link has been named “Best Deals 2016” by the trade finance magazine Global Trade Review (GTR). Read GTR’s statement here.
SEK has financed a high voltage direct current (HVDC) cable with a capacity of around 1,400 megawatts (MW). The aim is to secure electricity supplies between the two countries and the cable is expected to be operational in 2021. The interconnector will be bidirectional allowing the import and export of electricity between the UK and Norway.
ABB’s involvement in the project comprises the delivery of converter stations. The order value is about USD 450 million and SEK is providing financing of around USD 230 million in the form of an export credit at a fixed CIRR.
The proposed subsea cables will be routed from the converter station in East Sleekburn near Blyth in the UK to Kvilldal in Norway. The cable will pass through UK and Norwegian territorial waters. The North Sea Link will give the UK access to Norwegian hydropower whilst giving Norway access to UK’s increasing portfolio of wind and other renewable technology generation.
Amount: Approximately USD 230 million CIRR export credit
Buyer: Statnett and National Grid
Structuring bank and agent: BNP Paribas
Export Credit Guarantee provider: EKN
The North Sea Link will increase the security of electricity supplies and lead to a reduction in CO2 emissions equivalent to 2.65 million tons per year. The part being financed by SEK corresponds to an annual reduction of 371,000 tons of CO2 emissions